Sumitomo Mitsui Trust Asset Management
SuMi TRUST is the branding name of Sumitomo Mitsui Trust Asset Management Co., Ltd. (SMTAM) and its affiliated companies. SuMi Trust joined the Net Zero Asset Managers Initiative in July 2021 and made its Initial Target Disclosure in November 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
50% of total AUM (USD $367 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio coverage baseline
30% of AUM in material sectors is considered net zero.
Portfolio decarbonisation reference baseline
121 tCO₂e/$m revenue
Engagement threshold baseline
We have identified compnanies that have a siginificant impact on reducing global GHG emissions as being particularly important to fucus on with regards to engagements activity.
Portfolio coverage target
50% of AUM in material sectors is considered net zero
Portfolio decarbonisation reference target
-50% or 60tCO2e/$m revenue
Engagement threshold target
50% of assets under management to achieve a 50% reduction in their carbon footprint (greenhouse gas emission per unit) compared to 2019.
90% of financed emissions in our material sectors are subject to direct or collective engagement and stewardship actions by 2030.
GHG scopes included:
We currently include Scope1 and 2 emissions, and aim to include Scope 3, once data is sufficiently available.
Net Zero Investment Framework
Our scenario is the IPCC special report on global warming of 1.5°C.
Proportion of AUM committed:
We continue to review data availability for sovereign bonds, now. Once we are ready, these assets are to be managed in line with net zero.
Policy on coal and other fossil fuel investments:
No. We will not simply withdraw from investment (divestment) to exclude companies with high greenhouse gas emissions from investment targets. Withdrawal from investment is an easy way to eliminate the company’s involvement, but we believe that even if the assets we manage can be decarbonized, it will not result in decarbonization in the real world. It is our unwavering policy since we began stewardship activities nearly 20 years ago to work with companies to encourage improvement. Through stewardship activities, we will focus on activities such as engagement with investee companies.
As a responsible institutional investor, we aim to achieve sustainable growth and sustainability for investee companies and all of society by encouraging investee companies to resolve ESG issues through business excellence activities. Going forward, we will add activities through NZAM to continue our efforts in tackling climate change issues and promoting a smooth transition to a low-carbon / decarbonized society.