Natural Capital Initiatives of the SuMi TRUST Group
What is Natural Capital?
Natural capital is made up of diverse living creatures and the water, soil, and air that sustain them. These are the foundation sustaining life on earth and conserving them needs to be prioritized ahead of everything else. The way we live depends on natural capital and the ecosystem services they provide. We thus feel continued wise use of natural resources which constitute natural capital over the long run goes beyond mere environmental conservation. It must extend to putting communities on a solid social foundation to enable sustainable economic development.
Main Initiatives
Based on this understanding, SuMi TRUST Holdings has established the Action Guidelines for Preserving Biodiversity and are promoting the Biodiversity intiatives.
Sumitomo Mitsui Trust Holdings Action Guidelines for Preserving Biodiversity
Major Initiatives in the Group’s Business to Date
| 2000 | SuMi TRUST Bank is entrusted with the Keidanren Nature Conservation Fund, a charitable trust from the Keidanren Nature Conservation Council |
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| 2008 | SuMi TRUST Holdings signs the Leadership Declaration of the Business and Biodiversity Initiative SuMi TRUST Holdings establishes the Basic Policy for Addressing Biodiversity Issues (currently Action Guidelines for Preserving Biodiversity) SuMi TRUST Bank translates the TEEB (The Economics of Ecosystems and Biodiversity) Interim Report |
| 2010 | Asset management company develops Ikimonogatari, a Japanese equity investment trust specializing in biodiversity |
| 2012 | SuMi TRUST Holdings signs the Natural Capital Declaration (now the Natural Capital Finance Alliance) proposed by UNEP FI at the United Nations Conference on Sustainable Development (Rio+20) |
| 2013 | SuMi TRUST Bank develops environmental rating loans with natural capital evaluation; SuMi TRUST Bank forms the the Natural Capital Study Group |
| 2016 | SuMi TRUST Bank signs the Equator Principles |
| 2018 | Asset management company joins Farm Animal Investment Risk & Return, an engagement organization working primarily with the fisheries and livestock industries |
| 2019 | SuMi TRUST Bank develops Positive Impact Finance (PIF) |
| 2020 | SuMi TRUST Bank establishes financing policies for specific sectors SuMi TRUST Bank is entrusted with a forestry trust by Okayama Prefecture’s Nishiawakura Village |
| 2021 | Asset management company participates in the working group of TNFD (Task force on Nature-related Financial Disclosures) |
| 2023 | SuMi TRUST Holdings participates in the TNFD (Task force on Nature-related Financial Disclosures) Forum SuMi TRUST Holdings left the Business and Biodiversity Initiative |
| 2024 | SuMi TRUST Holdings left the Natural Capital Finance Alliance |
SuMi TRUST Group's Initiatives
SuMi TRUST Bank's Initiative s
Forestry Trust Business
In August 2020, SuMi TRUST Bank was entrusted with a “Forestry Trust” as a commercial trust from individual clients (hereinafter the Owners) that own approximately 10 hectares of forest in Nishiawakura Village, Okayama Prefecture. SuMi TRUST Bank has entrusted management activities to forestry entities on behalf of the owner, managed revenues, and distributed dividends. The forestry entity that performs the work combines multiple forests to ensure more efficient forestry management and prevent the situation where the owner of the land becomes unclear due to inheritance and other factors.
Thinning of Forests
In the summer of 2021, thinning work was carried out in Okayama Prefecture’s Nishiawakura Village. Forest maintenance and conservation are carried out by repeating the cycle of thinning at intervals of five years or more, followed by clear-cutting and reforestation. Appropriate maintenance can help prevent disasters such as landslides and increase carbon dioxide absorption. This thinning has created a healthy environment for the forest to grow by creating adequate space between the trees and allowing sunlight to shine through. Thinning materials are used for construction materials, furniture materials, and woody biomass (chips) for boilers, etc., which are utilized without waste in the local ecosystem and generate profit.
SMTAM's Initiatives
Policy and Plans for SMTAM Initiatives
At SMTAM, we have been engaged in the preservation and regeneration of natural capital as a key environmental issue, and we have conducted engagement activities related to palm oil production and made recommendations through government engagement activities aimed at the governments of Brazil and Indonesia regarding tropical rainforest conservation. Going forward, in addition to these activities, we will promote activities that encourage investee companies to disclose information in line with the TNFD, as well as participate in global collaborative engagement activities.
Please refer to SMTAM's Stewardship Repot for details.
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