Case study: How Sumitomo Mitsui Trust Group works with its clients and customers to encourage sustainable practices

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

In its Management Principles (“Mission”), the Sumitomo Mitsui Trust Group outlines its commitment to clients, shareholders, employees, and society, as its stakeholders.

Furthermore, its Basic Policy on Social Responsibility, known as the “Sustainability Policy,” expands the scope of stakeholders – such as clients, shareholders, investors, employees, business partners, local communities, NPOs, government authorities, and international institutions as major stakeholders – and reaffirms its dedication to respectful dialogue and active engagement in building a sustainable society.

By identifying stakeholders in this manner, Sumitomo Mitsui Trust Group aims to foster a clear understanding of how the Group relies on and impacts each stakeholder.

Stakeholder engagement within the Group is structured into three approaches aligned with each theme: direct action by related companies and relevant departments; direct participation in national and international initiatives by related companies and relevant departments; and internal engagement with related companies and relevant departments, supported by the Sustainability Management Department, based on stakeholder dialogue and information gathered from ESG assessment organizations. These communication channels have been diversified to enhance the quality and quantity of input.

How did Sumitomo Mitsui Trust Group work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its FY2023 PRB Report Sumitomo Mitsui Trust Group reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

Climate Change

The SuMi TRUST Group aims to achieve net-zero GHG emissions in its investments and loan portfolios by 2050. To reinforce this commitment, the Group has joined the UNEP FI-convened NZBA and disclosed its 2030 sector-specific intermediate reduction targets by the end of September 2024.

The SuMi TRUST Group’s policy emphasizes dialogue and engagement with companies based on the Group’s intermediate reduction targets and specific transition plans, in order to support clients in achieving carbon neutrality.

To date, the Group has implemented various initiatives to influence the environmental and social fields positively. These include promoting engagement and carbon neutrality responses through sustainable finance and consulting activities, notably including renewable energy plant projects and impact equity investments.

Regarding engagement (dialogue), the SuMi TRUST Group has committed to actively participating in the construction of a sustainable society and engaging with stakeholders, including clients, investors, governments, industry organizations, NPOs, and others.

The Group actively carries out engagement (dialogue) with clients to create positive impacts and mitigate negative ones. 

Financial Inclusion

In response to social issues accompanying Japan’s aging society, SuMi TRUST Bank seeks to establish a model for offering solutions to a large number of clients through in-depth consulting across a wide range and increasing the positive impacts on society. In achieving this goal, the bank will work towards enhancing its consulting, products, services, channels, procedures, settlements, and more.

As a part of this, the bank is working to disseminate its financial inclusion services for senior citizens.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

FBRH Principles for Responsible Banking (PRB) Assurance:

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The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by Sumitomo Mitsui Trust Group, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.smtg.jp/english/-/media/tg/english/sustainability/report/2023/E_prb_report.pdf

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