Corporate Social Responsibility
Together with Our Shareholders and the Market
Communication with our shareholders and investors
SMFG is committed to ensuring financial soundness through appropriate policy-making and business operations. At the same time, we disclose corporate information in a timely and precise way to shareholders and markets. We believe full disclosure not only helps foster a more correct understanding and evaluation of the Group, but also contributes to the development of sounder financial markets.
Based on this approach, SMFG goes beyond legal requirements in enriching its disclosure of information on management policy and operational strategy. These initiatives have won the support of many market participants. We were selected as a winner of the Awards for Excellence in Corporate Disclosure for fiscal 2011 by The Securities Analysts Association of Japan.
Listing on the New York Stock Exchange
In November 2010, the Sumitomo Mitsui Financial Group listed on the New York Stock Exchange. This move, we believe, not only significantly increases convenience for our overseas shareholders and investors, but also broadens our customer base as it further increases the transparency of our financial position. Listing on the New York Stock Exchange as a socially responsible corporation accelerates our evolution into a global player.
Creating a platform for social contribution through the financial markets
We believe that the SMFG group can contribute further to the creation of a sustainable society through its activities in financial markets.
For example, SMBC Friend Securities markets “Environmental Sustainability Bond” *1 while SMBC Nikko Securities markets “WB Green Bonds (Green Bonds)” *2. These are bonds for fund procurement that are also intended as tools for contributing to protecting and conserving the global environment. For customers who wish to invest in companies that contribute to a sustainable society, we offer a wide range of socially responsible investment vehicles.
Japan Research Institute analyzes applicant companies’ corporate social responsibility activities, and uses the information it gathers to create a basic file on companies managing socially responsible investment funds*3.
- *1 In December 2010, SMBC Friend Securities sold a total of AUS25 million in “Environmental Sustainability Bond”.
- *2 This fund is provided by SMBC Nikko Securities under the full name Bond for Contributing to Environmental Protection.
- *3 As of the end of June 2011, approximately ¥63.5 billion in total had been invested in nine publicly offered socially responsible investment (SRI) trust funds.
(The total balance was compiled by Japan Research Institute based on its Summary of SRI investments as of June 30, 2011.)
SMFG has listed its shares on SRI indexes
SRI indexes are for socially responsible investments in which major investment decisions are based on environmental and social factors as well as the target company's financial standing. SMFG’s proactive corporate social responsibility activities have won plaudits from the markets. As the right-hand graphic shows, SMFG is listed on globally leading SRI indexes. We believe that this is an endorsement by the market of the Group's future corporate social responsibility activities.
SRI Indexes on which SMFG is listed
Dow Jones Sustainability Index
This index was jointly developed by Dow Jones of the United States, and the Swiss SRI research company SAM Group. It was the first SRI index in the world.
FTSE 4 Good Global Index Series
The FTSE 4 Good Global Index Series was created by FTSE International Limited, a joint venture set up by the Financial Times newspaper of the United Kingdom and the London Stock Exchange.
Ethibel Sustainability Index
An index compiled by the Belgian SRI company Ethibel
The Group’s Principal SRI Funds
(¥ million)
| Date of opening | Official name of fund | Nickname | Sold by | Balance at March 31, 2011 |
|---|---|---|---|---|
| Aug. 20, 1999 | Nikko Eco Fund | – | SMBC Nikko Securities | 8,888 |
| Mar. 14, 2006 | Six-Asset Balanced Fund (distribution type, growth type) | Double Wing | Sumitomo Mitsui Banking Corporation | 1,494 |
| Dec. 20, 2006 | Nikko DWS New Resource Fund | Rising Tomorrow | SMBC Nikko Securities | 31,810 |
| Aug. 31, 2007 | UBS (JP) Climate Change Fund | Cool Earth | SMBC Nikko Securities | 12,810 |
| Aug. 31, 2007 | DWS New Resources Technology Fund | Global Shift | Sumitomo Mitsui Banking Corporation | 20,888 |
| Apr. 28, 2009 | Nikko World Trust – Nikko Green New Deal Fund(JPY Non-hedged Class)/(JPY Hedged Class) | – | SMBC Nikko Securities | 14,935 |
| Feb. 19, 2010 | SMBC Nikko World Bank Bond Fund | The World Bank Green Fund | SMBC Nikko Securities / Sumitomo Mitsui Banking Corporation | 13,870 |
| Jun. 30, 2010 | UBS (JP) Global Smart Grid Fund | – | SMBC Nikko Securities | 1,230 |
