Sustainability Initiatives in Our Business

The SuMi TRUST Group uses the relationship with SDGs (sustainable development goals) as one means of verification.

SuMi TRUST Bank is promoting the adoption of renewable energy through project finance. Loans are increasing for large-scale offshore and onshore wind power generation overseas, and for mega-solar projects in Japan. The accumulated generation capacity of these projects is 4,154 MW, and annual power output has reached 7,637 GWh.

In Japan’s water supply systems, an increasing amount of energy is released without being harnessed, such as untapped use of vertical drop in gravity-flow supply pipes and the release of surplus pressure in pumped supply pipes via pressure-reducing valves. Sumitomo Mitsui Trust Panasonic Finance supports the introduction of power generation systems that tap into such wasted energy through lease finance and the use of leasing agreements for water supply systems with local authorities.

Climate Change(2.32MB)

Efforts to address issues related to natural capital across the global supply chain are an indispensable part of management strategy in order for a company to continue its business. SuMi TRUST Bank provides Environmental Rating Loans with Evaluation of Natural Capital Preservation, which embed the concept of evaluating impacts on natural capital and a company’s initiatives into the environmental-rating evaluation process that assesses its environmental measures. This is the world’s first attempt to incorporate natural capital evaluation into loan criteria, and our efforts have been cited in government environmental white papers and European Commission reports as an example of leading-edge practice.

Through social contribution donation trusts set up for the purpose of making donations to public-interest organizations carrying out social contributions activities, SuMi TRUST Bank supports the activities of the Association of National Trusts in Japan, an organization that aims to protect nature by purchasing land that forms the natural habitat of endangered species in Japan.

Natural Capital (biodiversity issues)(2.25MB)

To promote the introduction of environmentally friendly property, SuMi TRUST Bank provides environmentally friendly construction consulting services where we advise on the installation of energy-saving systems in buildings, ways to take into account landscapes and ecosystems, extension of building life spans, and adoption of recycling systems.

CASBEE^* for Real Estate is a system developed in 2012 for the purpose of promoting widespread use of environmental building performance evaluations in the real estate market. SuMi TRUST Bank engages in consulting services to support applications for the CASBEE for Real Estate certification. CASBEE accredited professionals with proper qualification support the selection of real estate applying for certification while also evaluating the environmental performance of real estate and supporting the submission of applications for certification to certifying bodies.

*The comprehensive assessment system for built environment efficiency (CASBEE) certification is an environmental performance evaluation system for buildings being developed and promoted in Japan under the guidance of the Ministry of Land, Infrastructure, Transport and Tourism.

Environmentally Friendly Property(2.76MB)

While financial information such as earnings reports are important in the short term in evaluating companies as investments, we think assessments relating to the sustainable growth prospects of investee companies are important over the mediumto long-term. With the aim of identifying ways to improve and support sustainable earnings at investee companies, Sumitomo Mitsui Trust Asset Management strives to effectively gather ESG information such as the amount of added value derived from a company’s products and services, the sustainability of that value, and the resilience of the governance system in supporting the provision of that added value, and uses this information in the assessment of companies.

The Group launched Japan’s first responsible investment (RI) Fund aimed at corporate pension in 2003. Using the same RI approach, the SRI Japan Open (Good Company) mutual fund offered by Sumitomo Mitsui Trust Asset Management is marketed to a wide variety of investors, including individuals, and is now regarded as one of Japan’s standard-setting RI funds.

Sustainable investment

Stewardship Activities of Sumitomo Mitsui Trust Asset Management

SuMi TRUST Bank has a range of wealth management services for clients with dementia and can develop solutions for individual needs. For example, the Guardianship System Support Trust protects from embezzlement the assets of those under the adult guardianship system; the Security Trust protects those with declining capacity for judgment against money transfer scams; and the Anshin Support Trust is designed so pre-specified arrangements to pay sums necessary to cover usage fees for a nursing home for the elderly can be made for those worried their capacity to manage their wealth will decline later in life.

Comprehensive regional care is a necessary support system to enable the elderly to continue to live in ways that suit them in a place they are most comfortable until they reach their final days. We think SuMi TRUST Bank can play an important role as a financial institution that shoulders a responsibility for managing elderly client assets, and our branches nationwide are actively participating in efforts to build comprehensive regional care systems through measures such as cooperation with comprehensive regional care support centers and participation in case study groups organized by healthcare professionals.

Super-aging society issues