Support for TCFD Recommendations
Prior to becoming a signatory to the Principles for Responsible Investment (PRI) in 2006, the SuMi TRUST Group had addressed climate change and other ESG (Environmental, Social, and Governance) issues in the form of ESG investment, mainly through Nikko Asset Management’s Eco Fund (1999) and SuMi TRUST Bank’s first SRI fund for pensions (2003).
We are also addressing climate change issues from the perspectives of loans supplier.
For example, SuMi TRUST Bank was the first Japanese bank in March 2018 to clearly define its policy on coalfired power generation, in addition to its initiatives on financing renewable energy projects.
In 2020, we became a signatory to the Poseidon Principles, and set up the Technology-based Finance (TBF) Team in 2021, mainly comprising science and engineering doctors who possess technological know-how, with the aim to provide financial support for innovations directed at achieving a carbon neutral society.
In October 2021, we announced our Carbon Neutral Commitment and joined Net-Zero Banking Alliance (NZBA) to steadily work on our commitment.
In addition, with Sumitomo Mitsui Trust Asset Management Co., Ltd. and Nikko Asset Management Co., Ltd. becoming members of the Net-Zero Asset Managers initiative (NZAMI), an international initiative of asset management companies, and other activities, we are accelerating our Group-wide efforts to achieve a carbon neutral society by 2050.
*Group companies supporting the TCFD recommendations: Sumitomo Mitsui Trust Holdings, Sumitomo Mitsui Trust Asset Management, and Nikko Asset Management.
Initiatives Related to Climate Change
|1999||Launch of Nikko Eco Fund|
|2003||Full-scale entry into ESG investment (start of SRI funds)|
|2004||Start of initiatives on environmental finance|
|2006||Signatory to PRI and Equator Principles|
|2018||Announcement of support of TCFD recommendations and stance on coal-fired power generation|
|2019||Signatory to PRB|
|2020||Review of policy concerning environmental and social considerations for loans and signatory to Poseidon Principles|
|2021||Established Technologyｰbased Finance(TBF)Team Carbon Neutral Commitment
Joined the Net-Zero Banking Aliance(NZBA)
This report follows the sequence of the TCFD recommendations.
Chapter 1 discusses governance around climate-related risks and opportunities.
We provide information about our climate change governance, supervision by the Board of Directors, and the roles and activities of the dedicated committees that provide support to the Board and Executive Committee.
Chapter 2 discusses climate-related risk analysis.
We identify the main climate-related risks (transition risks and physical risks) in our banking (SMTB) and asset management (SMTAM and Nikko AM) businesses and discuss scenario analyses.
Chapter 3 discusses climate-related risk management.
We discuss not only our climate-related risk management system, but also our risk management approach to lending, including policies for specific sectors and the Equator Principles. Regarding risk management for investment activities, we discuss our participation in global initiatives and examples of engagement with investee companies.
Chapter 4 discusses climate-related metrics, targets, and opportunities.
We discuss our long-term target for sustainable finance and the products and services with which we take concrete action on opportunities. We also discuss SuMi TRUST Bank’s target on reducing greenhouse gas emissions.