Sumitomo Mitsui Trust Holdings

RATING

SECTOR

Financial Servies

WEBSITE

CONTACT

1-4-1, Marunouchi
CHIYODA-KU, TKY
100-8233
Japan

Tel: +81-3-62566000
Fax: N/A
Email: IR Inquiries: ir@smth.jp; Sustainability Inquiries: csr@smith.jp

STOCK EXCHANGE

LISTING

No notable listings available.

 

EMPLOYEES

21,113 (As of 2015)

CHIEF SUSTAINABILITY OFFICER

 No CSO or equivalent found.

 

AWARDS

Charitable Trust Support Award at 2020 ceremony organized by Zijin Trust Co., Ltd.

CONTENT SOURCE

FURTHER READING

Report created by Samuel Hamway

Sumitomo Mitsui Trust Holdings

SECTIONS :  Sustainability  •  Targets   Evaluation  •  Key Points  •  Overview

Company Activity

Sumitomo Mitsui Trust Holdings is an Japanese financial holding company. The firm serves areas worldwide, and is a leading financial institution in the world.

The company is one of the largest financial institutions in the world, holding $45.7 trillion JPY in total assets. This places the firm as the 57th largest bank globally

Sumitomo Mitsui Trust Holdings offers a wide range of financial solutions. These include primarily asset management, financial brokerage and real estate services.

Company Sustainability Activity

Sumitomo Mitsui Trust Holdings views sustainability as essential to its role as a corporate citizen. The firm reports its sustainability annually through its CSR Report, providing updates on its targets and progress. 

The company commits to its sustainability strategy through the following pillars:

  •  Contributing to Solving Social and Environmental Problems through Business
  • Serving Clients with Sincerity
  • Earning the Trust of Society
  •  Addressing Environmental Issues
  • Respecting the Individual
  • Participating in and Contributing to the Community

The firm feels sustainability measures must be aligned with the UN Sustainable Development Goals. It is also a signatory of both the PRB and the PRI.

 

Highlights

  • 50% reduction in emissions by the milestone year of fiscal 2030.
  • Reduce CO2 emissions by 50% from FY2019 levels by FY2030.
  • Over five years (FY2015 to FY2019), reduced emissions by 91,726 t-CO2.
  • Reduced electricity consumption rate (electricity consumption/total floor area) in fiscal year 2020 by 10.5% compared to fiscal year 2009.
 

Targets

  • Take on a total of ¥5 trillion in projects over the 10 year period from FY2021 to FY2030 (including ¥3 trillion in the environmental field). 
  • Further build up renewable energy finance portfolio.
  • Reduce CO2 emissions by 50% from FY2019 levels by FY2030.
  • Enhance TCFD (Task Force on Climate-related Financial Disclosures) report.
  • Reduce emissions by at least 4.2% per year.
  • 50% reduction in emissions by the milestone year of fiscal 2030.
  • SuMi TRUST Bank targets a 100% paternity leave ratio for male employees.

Progress

  • Over five years (FY2015 to FY2019), reduced emissions by 91,726 t-CO2.
  • Reduced electricity consumption rate (electricity consumption/total floor area) in fiscal year 2020 by 10.5% compared to fiscal year 2009.
  • Reduced the amount of paper used in FY2019 by 30 tons year on year (–4.2%) to 676 tons. 
  • Maintains a 100% waste paper recycling rate. 
  • Recycling rate increased to 62%, the highest level in the last five years.
  • Aimed to have 300 female employees in managerial positions (section manager or higher) by the end of March 2020; this target was achieved ahead of schedule in October 2019 with 357 female employees appointed to such positions.

Certificates

  • Loans from the Green Trust comply with the Green Loan Principles and received the highest possible rating of “Green 1” in JCR Green Loan Evaluation.
  • Funds are used to fund green buildings that have been awarded the CASBEE S rank.
  • Gold rating in the Pride Index to SuMi Trust Bank for two consecutive years through fiscal 2018.

UN Sustainable Development Goals

UN SDGs Compliance

SDG 3: Good Health and Well-being

  • Disseminate information and provide support underlying the foundation for living to a prosperous old age for clients, especially the elderly.

SDG 4: Quality Education

  • Cover all travel, stay, and school expenses, etc. for students from overseas (one each year) who participate in the International School of Asia, Karuizawa (ISAK) summer school.
  • Provide support in particular for students from the Shanti Bhavan school attended by children who are the most disadvantaged under the Hindu-based system of hereditary social stratification.
  • Develop Education for Sustainable Development (ESD) at schools across Japan on themes such as preserving local ecosystems
  • Carry out innovative lessons using educational videos in collaboration with Green TV

SDG 11: Sustainable Cities and Communities

  • Provide various forms of support for activities across Japan in cooperation with the Association of National Trusts in Japan.
  • Engage in diverse initiatives such as donations for funding purchases of National Trusts landholdings, volunteering, and ESD.
  • Spread of high energy efficiency, high resource efficiency cities and buildings
  • Enhancing value of environmentally friendly property
  • Spread of buildings that contribute to the improvement of production efficiency

SDG 13: Climate Action

  • Promoting energy shift through spread of renewable energy.
  • Reducing the amount of fossil fuel combustion by promoting energy-saving investment.
  • Transition from a fossil fuel-dependent society to remove carbon from society.
  • Creating a socio-economic system with low natural capital risks.
  • Biodiversity conservation and sustainable use of natural capital.

SDG 17: Partnerships for the Goals

  • Actively participate in various partnerships in Japan and overseas in which our stakeholders are collaborating.

Secondary SDGs: 2, 6, 7, 9, 12, 15

 

Evaluation

Sumitomo Mitsui Trust Holdings is undoubtedly committed to implementing sustainability into its business operations. The firm publishes reports including their annual Sustainability Report.

The firm’s reported strategies are explicitly in line with the UN Sustainable Development Goals. This is a result of being a signatory of the UN Principles for Responsible Banking, as well as the PRI.

Sumitomo Mitsui Trust Holdings has numerous targets focus on reducing CO2 emissions and building up its renewable energy finance portfolio. In addition, the firm discloses its sustainability progress for its operations.

Sumi Trust has invested $596 M in the fossil fuel industry since the adoption of the Paris Agreement. The firm did not invest any money from 2017 to 2019. In 2020, the firm invested $426 M. 

This company has been rated a C.

Analyst Outlook: Neutral

While Sumitomo Mitsui Trust Holdings offers transparency and clear targets are strong, it has fewer targets than most top financial institutions. Being a signatory of the UN Principles for Responsible Banking, as well as the PRI is commendable. Furthermore, the firm could comply with more SDGs directly.

Had Sumitomo Mitsui Trust Holdings not invested in fossil fuels in 2020, the bank would have received a positive outlook.

 

Key Points

  • The firm links its initiatives directly, yet loosely to the UN SDGs.
    • They attach each initiative to multiple, often in a tenuous manner.
  • While having fewer specific targets than ideal, the firm has made substantial progress on all of its initiatives.
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