Responsible Investment

Responsible Investment

Sustainability Philosophy

Striking a balance among stakeholders, including shareholders, customers, society, and employees, is the essence of our sustainability management philosophy.

As the global business environment changes, non-financial information has become more important to analyse the stability, sustainability, and medium to long term corporate value enhancement of investee companies.

By incorporating the analysis and assessment of such non-financial information into the investment process, taking into account each product’s investment philosophy and investment horizon, we will fulfil our fiduciary duties to provide high quality investment returns to our clients and their final beneficiaries.

1. What are the United Nations Principles for Responsible Investment (UNPRI)?

The UNPRI are principles related to investment based on the following six commitments which were established in 2006 through their proposal by then U.N. Secretary-General Kofi Annan, and the cooperation of the United Nations Environment Programme Finance Initiative (UNEP FI) and the United Nations Global Compact, both of which are United Nations affiliate organisations. The Principles do not carry legal binding power, but by voluntarily signing them, institutional investors, particularly overseas, with a strong awareness of sustainability issues make clear their propensity to give consideration to sustainability issues in relation to their investment process.

Six Commitments of the UNPRI

- - We will incorporate sustainability issues into investment analysis and decision-making processes.
  - We will be active owners and incorporate sustainability issues into our ownership policies and practices.
  - We will seek appropriate disclosure on sustainability issues by the entities in which we invest.
  - We will promote acceptance and implementation of the Principles within the investment industry.
  - We will work together to enhance our effectiveness in implementing the Principles.
  - We will each report on our activities and progress towards implementing the Principles.

2. Our company’s stance on the UNPRI

(1) Now, more than ever, sustainability factors can exert influence over asset value including enterprise value and stock price.

In light of these circumstances, our company will plan to strengthen analysis and evaluation related to risk assessment concerning sustainability within the risk assessment our company has implemented through qualitative evaluation thus far, and by signing the Principles, clarify our stance.

(2) Our company, with the goal of fulfilling our “duty to pursue, to the greatest extent possible, the maximum profit over the long term for our beneficiaries,” in other words, to further improve our investment performance, will perform the aforementioned activities from the perspective of further strengthening the investment methods we have pursued thus far.

3. Our company’s Initiatives related to sustainability activities

Our endorsement of these Principles provides the opportunity to establish a Sustainability Committee and the necessary regulations to strengthen our analysis and evaluation of sustainability issues. Our company’s Sustainability Committee will be the centre of our initiatives, and will actively promote our company’s sustainability activities.