Sumitomo Mitsui DS Asset Management Company
SMDAM provides clients with a rich diversity of options, from equities and bonds to various asset management products aimed at the global market. SMDAM joined the Net Zero Asset Managers Initiative in October 2021 and made its Initial Target Disclosure in February 2023.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
54% of total AUM (USD $77 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio decarbonisation reference baseline
96 tCO2e/ $mn
Portfolio decarbonisation reference target
-50% or 48 tCO2e/ $mn
GHG scopes included:
Sumitomo Mitsui DS Asset Management covers scope 1 and 2 emissions to calculate the target carbon intensity while we disclose GHG indicators some of which include Scope 3 emissions in calculation. For more information, please visit our website .
1) For the purpose of NZAMi baseline setting, Sustainalitics data are used to ascertain scope 1 and 2 data.
2) Currently, we include scope 3 data in the following asset classes for the TCFD disclosure purpose. Namely, Listed equity, Corporate fixed income and Real estate.
Net Zero Investment Framework
The Potsdam Institute for Climate Impact Research’s (PIK) REMIND model Sumitomo Mitsui DS Asset Management refers to the 1.5 ̊C, the 2 ̊C and 3 ̊C REMIND Orderly/ Disorderly scenarios.
Proportion of AUM committed:
Asset class of SSA (i.e. supranational, sovereign, government agencies and subnational), alternatives and derivatives are excluded from the AUM to be managed. Sumitomo Mitsui DS Asset Management would follow PCAF methodologies and thus SSA should, in the near future, automatically be managed in line with net zero. Eventually, we anticipate 100% of our AUM would be aligned with net zero.
Policy on coal and other fossil fuel investments:
For all funds in our company, we determine an investment policy that uses sustainability criteria to select the companies in which we invest. While we do not set specific standards for investments involving fossil fuels at an entity level, several funds have decided to disinvest in companies related to fossil fuels based on fund managers’ discretion or guidelines agreed with clients.