Sumitomo Mitsui Trust Holdings

In terms of senior leadership accountability, the responsibility for sustainability issues within the financial institution lies with the highest governing body. Sumitomo Mitsui Trust Holdings publicly commits to gender equality and women’s empowerment. The financial institution publishes case studies describing where it has engaged successfully with clients/investees on sustainability themes and impact topics. In terms of its approach towards impact management, Sumitomo Mitsui Trust Holdings acknowledges that its financing activities have both positive and negative impacts. The financial institution identified and prioritised its impacts through a materiality assessment process which included feedback from external stakeholders.

As a member of Glasgow Financial Alliance for Net Zero, Sumitomo Mitsui Trust Holdings has set a target of net-zero financed emissions by 2050. As a member of Climate Action 100+, the financial institution’s asset management arm discloses that it collectively engages with its clients on the topic of climate change. Sumitomo Mitsui Trust Holdings discloses the aggregate amount and share of finance it devotes to climate solutions while specifying what these solutions are. The financial institution is committed to minimising its negative impacts on nature and biodiversity. Moreover, the financial institution discloses the financing criteria it uses to ensure the protection of nature and biodiversity.  The financial institution also discloses nature- and biodiversity-related impacts as one of its engagement topics/priorities with companies to which it provides financial services. The financial institution provides evidence that it collectively engages with companies to which it provides financial services on the topic of their nature- and biodiversity-related impacts.

Sumitomo Mitsui Trust Holdings has a publicly available policy statement committing it to respect human rights. The financial institution also has a policy prohibiting bribery and corruption.

In terms of its approach to senior leadership accountability, there is no evidence that the financial institution links the remuneration of its executive or management teams to sustainability performance criteria. The financial institution has an opportunity to describe its engagement approach on sustainability themes and impact topics with investees.

Sumitomo Mitsui Trust Holdings could disclose interim emissions reduction targets at the group level, such as a 45% reduction in financed emissions by 2030. The financial institution has an opportunity to disclose the key sectors and companies it has identified as priorities to engage with on climate change, specifically on the alignment with the Paris Agreement. There is no evidence that the financial institution discloses time-bound targets explicitly for its climate solutions.

There is no evidence that Sumitomo Mitsui Trust Holdings describes the process for identifying its human rights risks and impacts through its relevant financing activities. The financial institution has an opportunity to disclose the proportion of its total direct operations workforce for each employee category by age group, gender or another indicator of diversity. To provide transparency on financial inclusivity, the financial institution has an opportunity to disclose the amount of finance directed towards, for example, women-owned businesses, small- and medium-sized enterprises or low-income developing countries.