Nikko Asset Management calculated the company’s CO2 emissions based on data on electricity, transportation, and business travel at its offices around the world, and confirmed that the company’s total CO2 emissions for FY2019 were 6,274.1 metric tons, 6.75 metric tons per employee, and 62.07 metric tons per billion yen in sales.

Based on these results, the company decided to participate in a carbon offset project to offset CO2 emissions. The funds that Nikko AM provided for offsetting CO2 emissions were used for solar power generation projects in India and wind power generation projects in China to enhance the energy mix. As a result, Nikko AM received a certification for achieving carbon neutrality in FY2019, as it did in FY2018. By participating in these projects, Nikko AM has been able to contribute to three of its priority areas: environment and climate, reducing inequalities, and diversity and inclusion, not only by providing stable energy, but also by creating sustainable jobs in the region, improving healthcare and sanitation, and enhancing educational opportunities for local communities.

Furthermore, upon calculating CO2 emissions, the company confirmed that over 70% of the CO2 emissions from its business operations were attributable to domestic and international air travel, as shown in the graph below. Taking this into consideration, Nikko AM introduced the carbon offset programs operated by each airline to its employees and suggested ways to reduce CO2 emissions during business trips, including by raising awareness of the fact that the amount of CO2 emitted varies depending on cabin class, as the amount of space allocated varies for each passenger.

In addition, 100% of the electricity used in Nikko AM’s London and Edinburgh offices have come from renewable sources since 2019. Although Nikko AM plans to continue offsetting its greenhouse gas emissions in FY2021 and beyond by participating in carbon offset projects, it believes that engaging in internally driven initiatives to reduce emissions is paramount.

Carbon Neutra Organisation
Nikko Asset Group Breakdown of CO2 emissions

Nikko Asset Management’s Three Environmental Policies

Increase green investors

As flows of funds through socially responsible funds (SRIs) are very significant for preservation of the environment, Nikko Asset Management strives to increase green investors.

Promote office activities such as energy and resource conservation

Nikko Asset Management strives to promote energy and resource conservation and recycling of waste and expand green procurement in offices. Nikko Asset Management also strives to prevent environmental pollution by complying with laws, regulations and other requirements related to the environment.

Develop information disclosure

Based on the recognition that it is extremely important from the perspective of the preservation of the environment that information disclosure related to the environment takes hold and develops as a social system, Nikko Asset Management develops information disclosure by actively disclosing information concerning its environment-related initiatives, including the environmental policies.

The Tokyo Head Office has been recording and analyzing environment-related indices for several years. In addition to recycling rainwater and wastewater, the building facilities at the Tokyo Head Office are actively monitored and energy use minimized through the use of natural lighting, energy-efficient lighting, and solar power generation.

Environmental Performance of Nikko AM (Tokyo Head Office)

FY2015 FY2016 FY2017 FY2018 FY2019 YoY Change
Electricity consumption thousand kWh 1,071 1,029 1,057 1,092 1,007 Down 7.8%
Total energy consumption GJ 14,022 13,441 13,807 15,191 13,710 Down 9.8%
CO2 emissions* t-CO2 671 643 670 723 654 Down 9.5%
Copy paper procurement amount per employee Piece 672 614 548 496 457 Down 7.9%
Stationery goods green procurement ratio % 50.6 65.0 58.8 54.5 13.6 Down 75.0%
  • Scope:Head Office Building (Tokyo Midtown Tower)
  • Period covered:Each fiscal year (From April to March of the following year)

*CO2 emissions:Calculated using the formula for measuring specific greenhouse gas emissions provided by the Tokyo Metropolitan Government’s Ordinance on Environmental Preservation.

Meanwhile, Sumitomo Mitsui Trust Panasonic Finance is taking steps to reduce power usage, copier paper, and gasoline. The company has achieved a more compact office by introducing open-plan workspaces where computers and projects are all networked and is reducing electricity consumption and copier paper volume by drawing on the benefits of paperless meetings, online approval forms for workflow, and less overtime work. In FY2018, the company reduced electricity consumption by 4.7% year on year. Copier paper usage increased by 5.3% year on year, but this was due to the transfer of subsidiary operations, which accounted for 4.2% of the increase, and excluding that, the increase was limited to 1.2%. The company started digitizing the processing of internal approval documents in FY2020 and will continue its initiatives to reduce copier paper usage.

Sumitomo Mitsui Trust Panasonic Finance has also been working to reduce its CO2 emissions from sales activities by encouraging its employees to switch from private company cars to public transport. In April 2018 it drafted internal guidelines on using vehicles for work with the aim of managing the health of its employees, ensuring safety, and streamlining sales activities. Not only does this initiative make effective use of traveling time, it aims to simultaneously achieve the social (health, safety) and environmental objectives of reducing CO2 emissions from cars used for sales by alleviating driver fatigue and preventing traffic accidents as a result of cutting out long-distance driving. By strictly observing a rail & rent-a-car policy, the company was able to slash its company car gasoline consumption by 19,000 kl (–21.3%) year on year. This equates to an CO2 emissions reduction of roughly 44.1 t-CO2.

Environmental Performance of Sumitomo Mitsui Trust Panasonic Finance

FY2015 FY2016 FY2017 FY2018 FY2019 YoY Change
Electricity consumption thousand kWh 1,007 1,008 982 984 938 Down 4.7%
Gasoline consumption kl 127 118 117 89 70 Down 21.3%
Copier paper consumption thousand sheets 16,590 17,464 17,508 17,567 18,499 Up 5.3%

Environmental Burden Reduction Measures

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