Sumitomo Mitsui Trust Asset Management Company Limited (President: Yoshio Hishida, hereinafter “SuMi TRUST AM”) has reviewed and updated a set of ESG materialities and related key activity items. SuMi TRUST AM’s ESG materialities identify the important issues for enhancing the value of portfolio companies and supporting their sustainable growth. SuMi TRUST AM’s key activity items, which are informed by our ESG materialities, are used to prioritise engagement activities with portfolio companies.

The review included a wide-ranging consultation of stakeholders, including our clients, and subsequent internal discussions on the amendment or replacement of key activity items.

SuMi TRUST AM mapped each key activity item taking into account a qualitative assessment and a quantitative dual-axis evaluation based on the following:

1)  A quantitative assessment on a financial dimension: risks and opportunities posed   by assets under management (investment portfolio) were assessed, analysed and   summarised in terms of financial impact based on ESG vendor data and adjusted   for sector dynamics.

2)  A quantitative assessment on a social dimension: risks and opportunities for society   as a whole posed by corporate activities were assessed, analysed and summarised   in terms of external interest (importance) and impact, based on information   available from a number of public organisations.

Following the review, SuMi TRUST AM has identified six priority activity items and developed accompanying action plans, which will be reflected in our future stewardship activities. The six priority activity items include: greenhouse gas emissions reduction; conservation of water resources and forests, and recovery of biodiversity; sustainable procurement of raw materials (palm oil, natural rubber, timber); human rights in supply chains; clarification of human resource strategies (human resource development, recruitment, placement, and evaluation); and employee engagement, which are shown in red in the Chart 1 below.

Chart 1: ESG materialities and key activity items

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About SuMi TRUST AM

SuMi TRUST AM is one of the largest asset management companies in Japan and Asia, with over USD 643 billion* in assets under management. As a responsible institutional investor with the corporate vision of “Realising opportunities today to ensure sustainable prosperity for tomorrow”, SuMi TRUST AM is committed to addressing ESG issues from a global perspective through constructive dialogue with companies in its portfolio and collaboration with international organisations promoting ESG efforts in various fields. In addition to pursuing new forms of asset management that is appropriate for the times, by contributing to the development of a more prosperous and sustainable society, we will strive to maximise the medium- to long-term investment returns of our customers.

*As of the end of September 2024

 

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Any enquiries regarding the products should be made to:
Hirofumi Hayashi
Head of Investment Management Department
Sumitomo Mitsui Trust International Limited
155 Bishopsgate, London EC2M 3XU, United Kingdom
Direct: +44 20 7562 8405
Email: imd@smtil.com
Sumitomo Mitsui Trust International Limited is authorised and regulated by the
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