Response to conservation and restoration of natural capital
(Working on TNFD)
In order to protect the environment of the Earth, it is essential to achieve nature positive (which means “halt the decline of natural capitals and restore it”) in addition to the efforts against climate change.
Setting “Environment” as its priority issue, SMBC Group makes efforts for achieving decarbonized society and contributing to conservation and restoration of natural capital as “two wheels of a cart”.
Working on the Taskforce on Nature-related Financial Disclosures (TNFD)
In January 2022, SMBC Group participated in the TNFD Forum and announced its support for the TNFD. In April 2023, it released the “SMBC Group TNFD report” for the first time. In this report, we analyze the relationship between our businesses and natural capital, as well as areas of particular emphasis, in line with the TNFD framework, and examine the direction of our efforts by sorting out risks and opportunities. Furthermore, in November 2023, we adopted "TNFD Adopter"（※）, which refer to companies that adopt the TNFD recommendation finalized in September 2023. We are committed to continuously strengthening our disclosure in alignment with the TNFD recommendation.
For details, please refer to the "SMBC Group TNFD Report."
※Companies indicating their intention to disclose information based on the TNFD recommendations by 2024 or 2025.
Summary of Disclosure Consistent with the TNFD framework
Summary of our initiatives in line with the four thematic areas of disclosure (Governance, Strategy, Risk Management, Metrics and Targets) set out by the TNFD are below. For more information, please refer to the SMBC Group TNFD report.
Examples of our initiatives
Forest conservation activities
In conjunction with promoting paperless initiatives, as part of our environmental efforts that involve our customers, Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Card have been making donations to forest conservation activities and aiming to create sustainable forests through the Japan-wide expansion of the initiatives "SMBC Green Project" and "Sumitomo Mitsui Card Forest".
Sumitomo Mitsui Card Forest (Japanese only)
Company Rules for Resource-Saving
Within the Group, various measures for resource-saving are being pursued concerning merchandise, ranging from the procurement stage to use, disposition and recycling stages.
For instance, at the stage of purchasing paper sheets in large quantity for use in copiers, SMBC selects and purchases sheets that are environment-friendly (e.g., products that meet the requirements of the Act on Promoting Green Purchasing) after confirming that material procurement and production were carried out adequately for the products in accordance with the environmental conservation criteria publicly disclosed by suppliers. Also, at the use stage, SMBC endeavors to reduce the quantity of use as per the rules specifically set internally (e.g., through the promotion of paperless meetings). At the stage of disposition and recycling as well, SMBC takes certain measures to achieve targeted reduction in the volume of paper waste to be processed.
Also, each individual company, including Sumitomo Mitsui Card, SMBC Finance Service, SMBC Consumer Finance and SMBC Trust Bank, endeavors to ensure resource-saving, energy-saving and waste segregation by type in compliance with the internal rules specific to each respective company.
Internal Recycling of Documents that are No Longer Needed
In addition to proactively pursuing measures such as reduction in waste volume and promotion of paperless customs processing, we are attempting to recycle parts of documents no longer needed at the head office to produce new paper for reuse within the bank by setting a “PaperLab” (an office-use paper production machine) in the head office building.
Developed by Seiko Epson, “PaperLab” can produce new paper by recycling documents no longer needed, without having to ship old documents externally for recycling. It enables a significant reduction in the volume of water used for production compared to conventional paper producing machines. Such a process will enable a greater decline in the level of environmental burden during procurement than purchasing new paper sheets.
As for the paper produced through such recycling, not only is effective use promoted both inside and outside the bank, but the system can also function as a trigger to raise employees’ awareness of waste segregation and recycling from the viewpoint of the importance of recycling in the office.
Pollution Risk Considerations in Leasing
Sumitomo Mitsui Finance and Leasing is completely in compliance with environment-related laws and regulations to prevent contamination of the environment due to illegal disposals of industrial waste materials triggered by the expiration of leases. In addition, multi-phased assessments of disposal contractors, mainly in terms of compliance, local research and interviews, are conducted annually in order to prudently select the most appropriate company that handles transportation and disposing of waste materials at the time of the expiration of a lease.
For details regarding various activities, please refer to SMFL's website.