To fulfill our duty as an investment manager that has adopted the Stewardship Code, SuMi TRUST AM has conducted constructive dialogue (hereinafter “engagement activities”) with the companies in which it has invested, aiming to achieve a market capitalization coverage ratio of 90% for companies listed on the First Section of the Tokyo Stock Exchange (*2). In particular, SuMi TRUST AM has focused on engagement activities concerning marine pollution and the proliferation of plastic waste, offering individual investors a product through which they can invest in a Bio-Diversification Supported Fund. In recognition of these efforts, SuMi TRUST AM has been presented with the award in the ESG Investment category.
SuMi TRUST AM will strive to maximize medium- to long-term investment returns for our clients through the maximization of the corporate value of the companies with which we conduct engagement, while enhancing transparency by publicly announcing our activities through the Stewardship Report and fulfilling our stewardship responsibility. SuMi TRUST AM will keep moving forward to provide investment products and services so that the name of “Sumitomo Mitsui Trust Asset Management” will ultimately be recognized as synonymous with “ESG investment and medium- to long-term investment.”
<Reference: Website of SuMi TRUST AM>
ESG activities as an institutional investor; http://www.smtam.jp/english/responsible/esg/
*1 ESG comes from the first letters of the three words, Environment, Society, and Governance.
ESG challenges are non-financial challenges that do not appear in their financial information and may ultimately have a significant impact on their corporate value over time. SuMi TRUST AM believes that effective responses to ESG challenges in relation to investment management will lead to upside potential and the mitigation of downside risk over the medium- to long-term period and will ultimately contribute to the maximization of investment returns to our clients.
*2 Market capitalization coverage ratio of companies listed on the First Section of the Tokyo Stock Exchange refers to a ratio obtained by dividing the total market capitalization of all companies with which SuMi TRUST AM has conducted engagement activities by the total market capitalization of all companies listed on the First Section of the Tokyo Stock Exchange.