Sumitomo Mitsui DS Asset Management Co., Ltd.
Definition of ESG products and sustainable product management framework
Sumitomo Mitsui DS Asset Management Co., Ltd. (CEO and President: Takashi Saruta, hereinafter “the Company”) has met the “Sustainable Product Certification Criteria” (hereinafter “Certification Criteria”) for all funds and products operated by the Company. Since March 2020, the classification based on We have revised our certification criteria, defined our “ESG products”, and established a comprehensive sustainable product operation management framework that includes confirmation of appropriateness at the stage of considering new products, subsequent information disclosure, and monitoring. We will let you know what we have decided.
1. About our ESG products
In the recent review of the Sustainable Product Certification Criteria, while the previous criteria focused on the “method” of considering sustainability factors, the new criteria added the perspective of “the degree of importance of sustainability factors in investment decisions.” I was. In addition, taking the opportunity of reviewing this certification criteria, we defined “positive
screening”, “ESG theme type” and “impact” among the criteria as “ESG products”.
The balance of “ESG products” under management (non-consolidated basis) as of the end of March 2022 is 557.9 billion yen.
https://prtimes.jp/a/?f=d67873-20221121-e0e5c93ab48fc52b82675765c8b70da0.pdf [Image 1
2. Operational management framework for sustainable products Taking the opportunity of reviewing the Sustainable Product
Certification Criteria, from the perspective of strengthening the governance of the product, we started to discuss the ideal operation management such as information disclosure and monitoring from the stage of considering new products, and started building a
comprehensive framework. did. Going forward, we will implement the following framework to monitor whether there are any discrepancies between the actual management of funds and the classification based on the certification standards, and we will strive to improve information disclosure so that fund beneficiaries and customers can easily understand.
At present, there are discussions both in Japan and overseas regarding the ideal form of sustainable investment and the establishment of disclosure rules. Based on these points, we are working on a daily basis to improve the sophistication of operations using ESG data in line with the enhancement of information disclosure by investee companies. In addition to reviewing individual certified products, we review the certification criteria themselves every year, and revise them as necessary.
Please refer to pages 39-40 of the Sustainability Report 2022-2023 for the background of the review of the Sustainable Product Certification Criteria, comparison of the old and new criteria, details of the operation management framework, etc.
https://www.smd-am.co.jp/corporate/vision/fiduciary/report/ [About Sumitomo Mitsui DS Asset Management]
Financial Instruments Business Operator Kanto Local Finance Bureau Director (Kinsho) No. 399
Member Associations: The Investment Trusts Association, Japan, Japan Investment Advisers Association,
Type II Financial Instruments Firms Association
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