Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Better QOL
• Regional development and revitalization
• Respect of human rights and diversity
• Improve sustainability of natural capital

Environmental Achievements

• Avoided GHG emissions of approximately 800,000 tons through investment in green infrastructure projects (equivalent to 12% of emissions from our portfolios)
• Set a target to cut GHG emissions 25% (compared to March 2020) in listed equities, corporate bonds, and real estate by 2025
• Joined the Net-Zero Asset Owner Alliance in February 2021

Social Achievements

• Cumulative investment amount for solving social issues reached approximately ¥800 billion as of the end of FY2020
• Aim to at least double the investment amount by FY2023
• Invested in projects supporting COVID-19 response (vaccines, pandemic impacted companies, education)

Governance Achievements

• Established a Responsible Investment Committee with a majority of external members
• Revised voting policy to increase corporate value and promote sustainable growth
• Engaged in dialogues with 248 companies to improve governance and ESG management

Climate Goals & Targets

Environmental Challenges

• Not all sectors can reduce GHG emissions at the same pace
• Need to ensure that responsible investment activities leave no one behind in a rapidly changing environment

Mitigation Strategies

• Provide support to encourage initiatives of companies, such as building infrastructure or expanding investments in technological innovation to make the transition to a low-carbon society
• Conduct engagements and provide financial support to help resolve challenges faced by companies
• Present the impact of investments and issues resolved through engagement in a clear and transparent manner

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Principles for Responsible Investment (PRI), Task Force on Climate-related Financial Disclosures (TCFD)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Human Rights
• Natural Capital
• Diversity & Inclusion

Environmental Achievements

• 16% reduction in GHG emissions in listed equities, corporate bonds, and real estate portfolio compared to 2020 (approx. 4.5 million tons CO2e)
• Approximately ¥710 billion in climate solution investments by the end of FY2022
• 1.23 million tons CO2e avoided GHG emissions in FY2022 from green infrastructure projects (equivalent to approximately 27% of portfolio GHG emissions)

Social Achievements

• Approximately ¥1.6 trillion in cumulative ESG-themed investments by the end of FY2022
• Investments in projects contributing to regional development and revitalization, QOL improvement, and respect for human rights and promotion of diversity
• Launched SETAGAYA Qs-GARDEN, a well-being community enhancing the quality of life of local residents

Governance Achievements

• Established Responsible Investment Committee with a majority of external members
• Formulated Basic Policy on Responsible Investment, Medium-Term Initiatives Policy for Responsible Investment, and Initiatives Policy for Transition Finance
• Revised voting standards in April 2023

Climate Goals & Targets

Environmental Challenges

• Insufficient number of companies formulating specific roadmaps to achieve net-zero emissions by 2050 and obtaining third-party certification
• Need to further expand the assets covered by the investment portfolio emission reduction targets
• Challenges in establishing more concrete and effective processes and systems to ensure respect for human rights, particularly the development of redress mechanisms

Mitigation Strategies

• Continued engagement with top 50 GHG emitting companies to encourage them to set reduction targets and formulate strategies
• Expanding assets covered by emission reduction targets to include corporate loans
• Promoting corporate human rights initiatives through engagement and collaborative engagement initiatives like PRI’s “Advance”

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, TNFD, PRI, Japan’s Stewardship Code, Corporate Governance Code

Awards & Recognition

• Gold Award (Minister of the Environment Award) at the 4th ESG Finance Awards Japan (Investor Category)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Social Impact
• Governance

Environmental Achievements

• Investing 2.5 trillion yen in environmental and climate change solutions, aiming for annual avoided GHG emission of approximately 2.4 million tons CO2e in FY 2026.

Social Achievements

• Promoting investments for the realization of a sustainable society, investing a total of 5 trillion yen in sustainability themes by March 2030.

Governance Achievements

• Formulated a joint medium-term policy to further promote responsible investment; revised negative screening criteria.

Climate Goals & Targets

Environmental Challenges

• Global funding gap for achieving sustainable development goals and net-zero emissions by 2050.
• Decarbonizing investment portfolios and fostering decarbonization across society.

Mitigation Strategies

• Setting ambitious interim targets for building a net-zero portfolio by 2050; actively engaging with investee companies to promote decarbonization; setting GHG emission reduction target levels by sector for electricity and steel sectors; implementing environmental and social assessments for project finance, referring to the Equator Principles.

Supply Chain Management

Responsible Procurement

• Confirmation of compliance with NDPE (No Deforestation, No Peat and No Exploitation) and RSPO certification for palm oil investments; FSC/PEFC certification for forest-related investments.

Climate-Related Risks & Opportunities