The environment surrounding companies is currently undergoing major changes. Corporate activities that emphasize social and environmental considerations are attracting the attention of institutional investors, especially in the capital markets of Europe and the U.S., and have come to occupy a significant position as factors in deciding where to invest. In Japan, too, the Japanese version of the Stewardship Code, a set of principles for responsible institutional investors to encourage sustainable growth by corporations through investment and dialogue, was introduced in February 2014. Institutional investors are now called upon to have an accurate understanding of the status of portfolio companies’ response to risks involving social and environmental problems. In concert with this, the revised version of the “Japan Revitalization Strategy” announced by the government in June includes the planned establishment of the “Corporate Governance Code,” which is a guideline for governance of listed companies. The draft of the code now being considered calls on companies to implement appropriate responses to issues involving sustainability, such as social and environmental problems. This revision is very much based on the awareness that “Creating Shared Value” is indispensable for each company in order to achieve sustainable growth and increase corporate value in the medium- to long-term; that is, each company must create social value by addressing social needs and problems while creating economic value such as through the pursuit of their own profitability and growth potential.
At Sumitomo Mitsui Trust Group (the “Group”), we have actively pushed forward in “Creating Shared Value,” putting it as the cornerstone of our CSR activities. With a view to creating new financial businesses that contribute to resolving social issues, we have focused on efforts such as solar loans for solar power generation equipment targeting individual clients, responsible investment funds for institutional investors, and consulting services on environmentally friendly construction. In addition, we developed the “Foreign Currency Revolution—Serenity” package in December 2014 as the first service of its kind in the industry offering foreign currency time deposits accompanied by cancer and nursing care insurance at no charge. Furthermore, as activities aimed at alignment of our business activities with society, we are striving to build a management system to understand and conduct integrated management of ESG risks inherent to Group company operations as a whole, as well as working on measures to strengthen governance in conformity with the Japanese version of the Stewardship Code and the Corporate Governance Code.
While the concept of CSR and related initiatives are gradually penetrating Japan, the scope and seriousness of the social issues we need to resolve are steadily increasing with the progress of globalization. The Group will continue to leverage the diverse functions unique to a trust bank group with the aim of being the “foremost sustainability bank,” contributing to the formation of a sustainable society. We look forward to your warm continued support and cooperation in these endeavors.
Sumitomo Mitsui Trust Holdings, Inc.
- Chairman Hitoshi Tsunekage
- President Kunitaro Kitamura
This icon indicates that the transition to an external website.
|This website contains content that requires Adobe® Flash® Player.
In order to view it, please download Adobe® Flash® Player (free) offered by Adobe Systems Corporation. Download it Here