Sustainability Management System

SMBC Group Sustainability Management System

SMBC Group

Under the guidance of the Group CSO (Chief Strategy Officer, a member of the board) and the Group CSuO (Chief Sustainability Officer) who oversees and promotes our sustainability-related initiatives groupwide, the Sustainability Division has been established to consolidate functions and knowledge at the group level, and is responsible for the planning and promotion of both corporate and business initiatives.

The Corporate Sustainability Committee, which is chaired by the Group CEO, discusses matters pertaining to the spread of sustainability management throughout the Group as well as measures necessary for promoting sustainability. Moreover, we have established the Sustainability Committee as an internal committee of the Board of Directors. The Group CSuO and the Group CRO (Chief Risk Officer) will periodically report to the Sustainability Committee and the Risk Committee. We are continuously enhancing our corporate governance and management frameworks.

Furthermore, SMBC Group has incorporated indicators related to ESG initiatives into executive compensation schemes to accelerate sustainability management. In June 2023, we revised our director executive compensation system to incorporate new quantitative ESG indicators including reduction targets for our portfolio greenhouse gas emissions in the medium-term performance-linked compensation.

Structure to discuss, implement and manage our sustainability measures