First Sentier MUFG Sustainable Investment Institute
Climate Impact & Sustainability Data (2022, 2023, 2024-05)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Microfibre pollution
Climate Goals & Targets
Environmental Challenges
- Microfibre pollution from textiles throughout their lifecycle (manufacturing, use, disposal).
Mitigation Strategies
- Regulate textile shedding rates, use microfibre filters for laundry machines, curb microfibre releases from textile manufacturing, improve microfibre retention during wastewater treatment.
Supply Chain Management
Responsible Procurement
- Developing low-shed textiles, implementing best practices to minimize microfibre loss during manufacturing
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- Low-shed textiles
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Sustainable Development Goals (SDGs)
Climate Goals & Targets
Environmental Challenges
- Managing higher investment risk in lower-income countries
- Aligning national & regional sustainable finance policies with SDGs
- Clarifying the scope of Stewardship Codes in relation to SDGs
- Nurturing ownership towards the SDGs by the finance industry
Mitigation Strategies
- Collaboration with international stakeholders (ASSIST program in Indonesia)
- Holistic integration of SDGs into public policy (EU Green Deal, Canada's Federal Sustainable Development Act)
- Integrating sustainability into Stewardship Codes (UK Stewardship Code)
- Fostering a culture of bottom-up SDG commitments (Japan's Ministry of Foreign Affairs, JFSA strategy)
Supply Chain Management
Climate-Related Risks & Opportunities
UN Sustainable Development Goals
- All 17 SDGs
The report focuses on how sustainable investment can contribute to achieving all 17 SDGs.
Reporting Period: 2024-05
Environmental Metrics
ESG Focus Areas
- Diversity, Equity & Inclusion (DEI)
- Gender Equality
- Disability Inclusion
- LGBTQ+ Inclusion
- Ethnic Diversity
- Socioeconomic Inclusion
Social Achievements
- Improved understanding of DEI beyond gender.
- Provided engagement questions for investors to assess DEI practices.
Governance Achievements
- Highlighted regulatory developments and initiatives to extend DEI disclosure.
Climate Goals & Targets
Environmental Challenges
- Lack of data on DEI beyond gender.
- Methodological weaknesses in some DEI studies.
- Regional variations in DEI definitions and practices.
- Challenges in measuring equity and inclusion.
- Resistance to DEI initiatives in some regions.
- Underreporting of discrimination and harassment.
- Lack of awareness and understanding of neurodiversity.
- Difficulties in collecting ethnicity data in some countries.
- Limited progress on socioeconomic inclusion.
- Persistent gender pay gap in Japan.
- Low uptake of paternity leave in Japan.
- Underrepresentation of women in management in Japan.
- Challenges for migrant workers in Japan.
- Low employment rate for people with disabilities in Japan.
- Limited progress on LGBTQ+ inclusion in Japan.
Mitigation Strategies
- Emphasis on equity and inclusion.
- Development of engagement questions for investors.
- Analysis of regional variations in DEI.
- Use of analytical proxies to overcome data limitations.
- Highlighting the moral case for DEI.
- Promoting employee network groups.
- Advocating for better data collection and disclosure.
- Providing best practices for employers.
- Highlighting the business case for DEI.
- Promoting executive allyship.
- Using benchmarks to guide DEI efforts.
- Addressing intersectionality.
- Focusing on career progression and psychological safety.
- Providing accommodations for neurodivergent employees.
- Addressing challenges in collecting ethnicity data.
- Promoting social mobility initiatives.
- Encouraging male employees to take paternity leave.
- Improving opportunities for women in full-time roles.
- Addressing challenges faced by migrant workers.
- Improving employment practices for people with disabilities.
- Promoting LGBTQ+ inclusion initiatives.
Supply Chain Management
Climate-Related Risks & Opportunities
UN Sustainable Development Goals
- SDG 5: Gender equality
- SDG 8: Decent work and economic growth
- SDG 10: Reduced inequalities
The report's findings and recommendations contribute to achieving these SDGs by promoting inclusive workplaces and reducing inequalities.