Promotion of Environmental Businesses

SMBC group considers that environmental businesses are means to preserve and improve the global environment in its core business operations as a financial institution.
We will outline our environmental businesses, including solar power-based renewable energy operations and investment projects with a positive environmental contribution, as well as other environment-related products and services.

Main Measures

Measures Being Taken for Sustainable Finance

SMBC Group

SMBC Group proactively endeavors to solve environmental and social problems through the core businesses of the respective Group companies. We are focusing on sustainable finance, especially in the field of environmental issues, with a goal of achieving a cumulative total of 50 trillion yen over the 10-year period leading up to 2030.

For instance, in the area of power generation via renewables (where certain forms of nature’s power are employed, e.g., solar energy, wind power), various services are being provided by relevant Group companies leveraging their respective advantages, for example, lending by SMBC; trust service by SMBC Trust Bank concerning power generation facilities, construction sites, etc.; provision of leases by SMFL for power generation facilities; and equity investment by SMBC Nikko Securities. Altogether, we will pursue such initiatives as an integrated group for general financial services.

Project Financing for Renewable Energy


For many years now, SMBC has been providing project finance for renewable energy businesses such as solar power generation and wind power generation in Japan and overseas. The bank has a strong track record in this area. Since no carbon dioxide is emitted in renewable energy in principle, these operations are deemed to reduce CO2 emissions because the power they generate can replace energy from non-renewable sources such as coal, oil and natural gas. Support for such projects contributes to reductions in CO2 emissions and environmental impact.

For further details on project finance, please refer to the following website.

SMBC: Project Finance (Japanese only)

Sustainable Value-Added Funds


In February 2021, in collaboration with SMBC, SMBC Trust Bank launched the “Sustainable Value-Added Fund No. 1 Investment LLP” and have already invested in five properties. Investing mainly in older properties, we undertake a range of renovation projects, such as updating air conditioning facilities to the latest equipment to save energy. Through such investments, we contribute to the enhancement of the quality of the fund’s domestic real estate portfolio and reduce the environmental burden that the real estate carries.

Initiatives for Renewable Energy Through Business


SMBC Trust Bank conducts renewable energy business initiatives that include receiving on trust for solar power facilities and site usage rights (ownership, leasehold, and surface rights) and managing them as trust assets as the trustee paying dividends to beneficiaries on income from the electricity sold.

Initiatives for Solar power Energy Services (PPA)


SMFL Mirai Partners, a strategic subsidiary of Sumitomo Mitsui Finance and Leasing, provides on-site solar energy services (PPA model).
SMFL Mirai Partners will implement solar power generation equipment on the roofs of customers' buildings, etc., in order to materialize CO2-free electricity procurement of customers (energy service).
SMFL Group also provides other decarbonization solutions such as off-site solar energy services, energy-efficient equipment leasing, subsidy consulting, and LED rentals to help customers reduce Greenhouse Gas emissions.

Sustainability-linked leases/loans

Sumitomo Mitsui Finance and Leasing (hereinafter “SMFL”) offers "Sustainability linked leases/loans," in which the lease fee/interest rate is linked to the CO2 emission reduction of vessels.
In December 2020, SMFL became the first leasing company in the world to sign the Poseidon Principles, which were developed to promote the decarbonization of the shipping industry as a financial institution. This initiative is linked to the lease fee/interest rate to the valuation formula of the same principle.
Through the Poseidon Principles initiative, we will enhance our commitment to the decarbonization agenda, and support our maritime clients' financing needs in the context of contributing to the efforts to build a carbon-free and renewable energy based society.

Real estate brand “NEWNO”

SMFL Mirai Partners, a strategic subsidiary of Sumitomo Mitsui Finance and Leasing, has launched NEWNO, a new brand in its real estate business in July 2021 and has developed five properties so far. The project aims to create highly functional buildings that contribute to a sustainable society through environmental considerations, such as the use of electricity that does not emit greenhouse gases (GHG) in the power generation process, and safety and security measures, such as improving ventilation efficiency on each floor in accordance with the intended use of the building from the perspective of preventing infectious diseases. We will continue our efforts to develop real estate with superior comfort and to revitalize local communities, taking into consideration the environment and the health of users.

Track Record of Green Bond Issues


In October 2015, SMBC, SMBC Group's main operating bank, issued USD denominated green bonds. It was the first green bond issuance among Japanese private financial institutions. Since then, SMBC Group regularly issues green bonds.

Green Bonds Issuance by SMBC_SMFG

Support for Green Bond Issuance at SMBC Nikko

SMBC Nikko

SMBC Nikko launched a specialized department (present: Sustainable Solution Dept.) in 2018, in order to solve environmental and social issues through business in the financial and capital markets. We are actively engaged in supporting companies and organizations to issue green bonds and other SDGs bonds.

SMBC Nikko:Finance Advisory(Japanese Only)

Transition Finance

SMBC Group

To accelerate global decarbonization, it is essential to finance the transition of hard-to-abate sectors facing challenges to leapfrog to a low-carbon economy.
SMBC Group established “Transition Finance Playbook” (hereinafter referred to as the “Playbook”) which outlines SMBC Group’s definition of and approach towards transition finance. We will contribute to the decarbonization of the real economy through transition finance.
The Playbook refers to international guidelines for transition finance, recommendations of Net Zero Banking Alliance, as well as to local applicable regulations, taxonomies and roadmaps. SMBC Group obtained Second Party Opinion from DNV Business Assurance Japan Co., Ltd for the Playbook. SMBC Group will continue engaging with our customers leveraging the Playbook to contribute to achieving decarbonization globally.

Environmental business creation

Initiatives Towards a Decarbonized Society


SMBC has been taken a close look at hydrogen as one of the key technologies toward decarbonization and taken various activities to support it.
In 2020, together with Japanese hydrogen related companies, SMBC Group established Japan Hydrogen Association, aiming to realize hydrogen society, as a joint representative.
In addition, SMBC joined a power plant project which combines solar PV with hydrogen storage and battery in French Guiana as the sole non-French commercial lender selected. This project is the first non-recourse financing for green hydrogen globally.

Initiatives for Growth Sectors


SMBC has promoted business activities related to emissions trading since 2005.
Specifically, SMBC has been providing financial support for energy conservation and renewable energy development projects conducted overseas with environmental technologies from Japan in connection with the Joint Crediting Mechanism (JCM), a new framework promoted by the Japanese government in the post-Kyoto Protocol era. Since fiscal 2010, the bank has conducted various business feasibility study for over thirty projects, primarily in Asia and Central and South America, while planning and developing financing schemes.
In addition, SMBC joined Carbonplace, the new settlement platform for carbon credits, as a founding member in 2022. It is developed by a group of banks committed to finding a collaborative solution to strengthen the voluntary carbon market and drive climate action at scale. SMBC will provide its wide and diverse client base direct access to voluntary carbon credits through the platform.

  • *A mechanism utilized to achieve Japan's reduction targets that involves quantitatively assessing Japan's contribution to greenhouse gas reduction and absorption realized through promotion of low-carbon technologies, an area of specialty for Japanese companies, in developing countries and contributing to measures to combat global warming at the global level.

Contributing to a circular economy


Sumitomo Mitsui Finance and Leasing Company, Limited focuses on selling used general machinery and equipment, not only that have been returned after lease maturity but also that owned by our clients, particularly with a proven track record as a leading player in the sale and purchase of used semiconductor manufacturing equipment. We are also actively promoting 3R activities, such as providing waste compliance management ASP services (PBasis) and waste disposal support services as well as launching the equipment and plant disposal general contractor business by SMART Incorporated., a company jointly owned by SMFL MIRAI Partners Company, Limited (100% subsidiary of SMFL) and ARBIZ Corporation. We will continuously strive to realize circular economy by utilizing our knowledge and expertise in equipment as a leasing company and by collaborating with partner companies such as manufacturers, distributors and recyclers.

Consultation for Environment-Related Business


Environmental Advisory Business
It engages in numerous environmental projects mainly in the energy and smart community fields.
It strives to contribute to the resolution of global-warming issues and development of environment-friendly businesses by the creation of new businesses.


Proposals for Energy-Related Policies
JRI makes recommendations and proposals for energy systems of next-generation and energy strategies for Japan. For detailed examples from JRI, please refer to the following website.

JRI: Economy & Policy report(Environment, Energy) (Japanese only)

Alliances Related to Environmental Business


In emerging countries, the need for economic development that is balanced with the global environment is driving remarkable progress in local environmental business markets. SMBC has signed multiple memorandums of understanding (MOUs) for building bridges with Japanese companies with environmental technologies in emerging countries, financing environment-related projects, and providing know-know on emissions credit trading.
In addition, SMBC completed the accreditation process for the Green Climate Fund (GCF), the world’s largest multilateral fund set by the United Nations Framework Convention on Climate Change, and received approval to act as an Accredited Entity (AE), an institution that is able to develop funding proposals to GCF and access GCF funding. In collaboration with GCF, SMBC will contribute to expand sustainable finance with wider support for climate-related actions in developing countries and innovative projects such as developments in hydrogen toward the realization of decarbonization and sustainable society.
Through these and other efforts, the bank continues to work to strengthen its environmental business networks with emerging countries.
Going forward, we will utilize our environmental business knowledge and experience as a diverse financial group to meet a variety of needs in environment and energy and other fields.

Initiatives for Environmental Conservation Through Financial Products


SMBC Group develops and supplies financial solutions and products for customers engaged in addressing various social issues, notably climate change and other environmental issues through promotion of energy and resource conservation and countermeasures for global warming.
Please visit the link below for more details on SMBC Group's financial solutions lineup

Sustainable Solutions

Initiatives for Environmental Protection Through Investment


In October 2017, SMBC invested in Tokyo Green Bonds (*) issued by the Tokyo Metropolitan Government, an initiative for contributing to society through asset management.

*Green bonds are bonds issued to raise funds for green projects. Tokyo Green Bonds have been assessed by an independent institution as being consistent with the characteristics of "green bonds" as defined by the International Capital Market Association (ICMA).

SMBC plans to allocate funds raised through the issue of Tokyo Green Bonds to environmental measures, urban development projects based on smart energy and a vision of the cool, clean and pleasant city, and projects for adapting to the impact of climate change.

Bond name Tokyo Green Bond (5-yr. / 30-yr.), first issue
Ratings A+(S&P)
Total amount issued ¥10.0 billion

SMBC will continue to contribute to the Sustainable development of society as a whole through initiatives for the environment, which SMBC Group has specified as one of its key priority issues, and will continue to work to secure investment income and raise corporate value through diverse investment initiatives for more highly advanced, multifaceted forms of investment and by demonstrating its core functions as an institutional investor.

SMBC: Invested in Tokyo Green Bonds issued by the Tokyo Metropolitan Government (Japanese only)