Sustainable Finance

In order to resolve environmental and social issues through business in financial and capital markets, our company established the SDGs Finance in 2018, and has been actively promoting SDGs and ESG investments.

Credentials of Sustainable Finance

JPY-denominated Bond by Japanese Issuers
Foreign currency-denominated Bond
Equity

External Award

Our company's efforts have been highly appreciated externally, and it has also entered into active partnerships with external organizations to promote initiatives toward SDGs.

Received the silver prize from the Minister of the Environment*1 on 2019 ESG Finance Award Japan*2

  • SMBC Nikko Securities has been making concerted efforts to meet the ESG needs of our customers by establishing the SDGs Finance as a specialized team to support financing through SDGs bonds, promoting investment statement related to SDGs bonds, and promotion of retail products in product planning.
  • As a result of these efforts, SMBC Nikko Securiries received the Minister of the Environment Award (silver prize), the highest award given to a securities company, in the financial services category at the ESG Finance Awards Japan held by the Ministry of the Environment in FY2019.
ESG Finance Award Japan
ESG Finance Award Japan
  1. *1The ESG Finance Awards Japan were established by the Ministry of the Environment in FY2019 to promote ESG finance. The award was established to evaluate and commend the efforts of companies that have created corporate value and impact on reducing environmental impact, and to share it with society. The award is given to five categories, including investors, banks, insurance companies, securities companies, organizations, green bond issuers, structuring agents, and external reviewers.
  2. *2The Financial Services category, which our company received the Minister of the Environment Award, recognizes organizations and groups that are actively engaged in expanding financial products and developing infrastructure that contribute to the development of ESG financial markets. The category includes securities companies, insurance companies, rating agencies and organizations (Industry organizations, etc.).

Partnerships

Our company's efforts have been highly appreciated externally, and it has also entered into active partnerships with external organizations to promote initiatives toward SDGs.

Joining the Climate Bonds Partners Programme

Climate Bonds Partners Programme
  • SMBC Nikko Securities participates in the Climate Bonds Parners Programme operated by the Climate Bonds Initiative (CBI) *.
  • The program is joined by Climate Bonds Partners to support investor and stakeholder activities and educational projects to grow a sustainable green bond market that contributes to climate change adaptation and decarbonization investments.
  • To further support the SDGs and climate change efforts, our company will further strengthen its partnership with the CBI through its participation in the Program and continue to strongly support the issuance and investment of numerous green bonds.
  • *The Climate Bonds Initiative is an international NGO that promotes large-scale investment owards low-carbon economies. One of their specific activities is the formulation of Climate Bond Standards (CBS), which are their own standards for green bonds, and CBI certification, which certifies if frameworks meet these standards.

External Cooperation

Participation in the TCFD*1 Consortium as the Secretariat

Consortium
  • The TCFD Consortium was established on May 27, 2019 by the founders including Kunio Ito, a specially appointed professor at Hitotsubashi University Graduate School.
  • Approximately 264 TCFD-supporting companies (As of June 2020) have participated in this consortium, and discussions were being held on effective information disclosure by companies and how financial institutions should make appropriate investment decisions based on disclosed information.
  • The Ministry of Economy, Trade and Industry, the Financial Services Agency, and the Ministry of the Environment were also participating in the consortium as observers, and our company was also involved in the activities as a member of the secretariat.
  1. *1At the request of the Group of 20, TCFD was established by the Financial Stability Board (FSB) under the chairmanship of Michael Bloomberg as a "Climate Financial Disclosure Task Force" to examine how to disclose climate-related information and respond to financial institutions. TCFD published its final report in June 2017.

Participation in the ICMA*2 Working Group

  • Our company is participating in the working group led by ICMA to maintenance the Green Bond Social / Bond Principles, the Sustainability Guidelines, and other guidelines, and is participating in the market formation of the SDGs bond.
  1. *2ICMA (International Capital Markets Association) is an international organization based in Switzerland. ICMA has over 500 members worldwide, including issuers, primary markets, secondary market brokers, asset managers, investors, and capital market infrastructure operators in about 60 countries. We publish the Green Bond / Social Bond Principles, the Sustainability Bond Guidelines, and the Sustainability Link Bond Principles.