Environment - Toward a Sustainable World That All Can Share
Recognition of Social Issues
The world has accelerated its move toward becoming a low-carbon or carbon-free society with the enactment in 2016 of the Paris Agreement to hold the increase in global average temperature to below 2°C of preindustrial levels. Moreover, the United Nations’ Sustainable Development Goals (SDGs) also address long-term environmental issues such as climate change, energy and biodiversity, requiring companies to raise their contribution through their businesses.
In the financial services field, environmental risk assessments must be conducted on financing and investment targets, and emphasis is placed on funding for projects capable of resolving environment issues on a global scale and environmental education for the employees that promote these assessments.
SMFG Group’ s Approach
SMFG group seeks to reduce the environmental impact of its business activities and contribute to global environmental protection from an economic standpoint by leveraging its financial functions. Our focus with respect to customer environmental measures is on four areas, the environment, renewable energy, water, and natural resources, and by providing financial services along with consulting on carbon credit utilization and environmental management, our aim is to help create more sustainable societies while generating business opportunities.
To effectively promote these activities we have identified the following three themes that SMFG should address.
- ●Promotion of environmental businesses
- ●Management of environmental risks
- ●Reduction of environmental impacts
SMFG Group’ s Management
Environmental management at SMFG group is based on the Group Environmental Policy and ISO 14001. In financial services, we promote business activities based on the guidelines and principles of initiatives such as the UN Global Compact and Equator Principles.
Overview of Fiscal 2016 Activities and Issues
In fiscal 2016, SMFG Group companies advanced the environmental business in response to their respective business formats in such ways as environmental assessment loans, leasing and financing of reusable and renewable energies and sales of environment-related bonds.
Aimed at decreasing environmental load, the Group actively engaged in environmental preservation activities including creating in-house manuals responding to changes in ISO 14001 regulations conducting third-party verifications of greenhouse gas emissions at each of the 10 SMFG companies and carrying out SMFG Clean-Up Day, which were attended by more than 1,000 employees and their families over the year. SMFG also strived to introduce environment-related information and financial services through environmental exhibitions inside and outside of Japan and by issuing environmental pamphlets.
Amount of SMBC Environmental Assessment Loans and Private Placement Bonds*
* Cumulative amount from the start of the initiative to the end of fiscal 2016