SuMi TRUST Holdings, Sumitomo Mitsui Trust Asset Management, and Nikko Asset Management are signatories to the UN-supported Principles for Responsible Investment that came into force in May 2006. The Principles encourage institutional investors such as pension funds and asset managers to incorporate environmental, social, and governance (ESG) factors into investment decision-making processes. As one of the founding signatories, we have continued to play a leading role in expanding Japan’s ESG market.

Approach to ESG

ESG issues reside in non-financial domains and do not manifest themselves in financial reporting, but they can have a considerable impact on corporate value over time. Based on this thinking, SMTAM considers the actions taken to address such issues to be integral to stewardship activities, alongside engagement and the exercise of voting rights. Through these activities, SMTAM aims to maximize returns for its clients and contribute to the achievement of the SDGs by actively fulfilling its role as an asset manager in the investment chain.

ESG investment

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