Response to climate change
(Working on TCFD Recommendations)

Our approach against climate change

Addressing climate change issues is one of the most important global concerns of the 21st century. Since the adoption of the Paris Agreement, global efforts to battle climate change are accelerating. The Japanese Government committed to transitioning to a decarbonized society by announcing a net zero emissions target for 2050 in October 2020. At the COP26 held in 2021, a formal agreement was concluded stating that efforts would be made to keep global warming from before the industrial revolution to below 1.5℃. Countries and corporations alike must further enhance their efforts to realize the 1.5℃ target, in other words a decarbonized society, due to the non-binding climate change goals agreed upon in the Paris Agreement becoming a shared, global goal.
As a result, SMBC Group (hereinafter, “SMBC Group” and the “Group” are used interchangeably) is committed to achieving net zero greenhouse gas (GHG) emissions across our overall investment and loan portfolio by 2050, as well as from our own operations by 2030. In line with this commitment, SMBC Group became a member of NZBA (Net Zero Banking Alliance) and NZAMI (Net Zero Asset Managers Initiative), international climate change initiatives for banks and asset managers, respectively. SMBC Group will accelerate efforts aimed at achieving our net zero target by supporting the activities of our customers that contribute to the transition toward and realization of a decarbonized society.

Transition Plan for achieving net zero in 2050

SMBC Group aims to achieve net zero for our own greenhouse gas emissions by 2030, and for our entire loan and investment portfolio by 2050. We have adopted the methodology in the GHG Protocol Corporate Standard and financial sector-specific programs(*1) for our emissions accounting(*2) and systemized the series of targets and actions in the "Transition Plan."

  1. (*1)   The calculation of Category 15, Scope 3 emissions (financed emissions) is conducted with reference to the methodologies set out in The Global GHG Accounting & Reporting Standard for the Financial Industry and the Paris Agreement Capital Transition Assessment (PACTA) as discussed in our Taskforce on Climate-related Financial Disclosures (TCFD) report.
  2. (*2)   We have also obtained limited assurance for our Scope 1 and Scope 2 Greenhouse Gas emissions from KPMG Azsa Japan LLC.

Outline of Metrics, Targets and the Transition Plan

Transition Plan for achieving net zero in 2050

Working on the Task Force on Climate-Related Financial Disclosures (TCFD) Recommendations

SMBC Group announced its support to the TCFD (*1) at the "One Planet Summit" held in Paris in December 2017. We will continuously support our customers in their efforts to reduce GHG emissions by such measures as promoting the introduction of environment-friendly technologies through their business operations. Being committed to reducing GHG emissions, we will conduct business in a manner that contributes to the growth of both our customers and society, and will further enhance our actions towards climate change.

For more information please refer to SMBC Group TCFD Report.

  1. (*1)   The Task Force on Climate-related Financial Disclosures (TCFD) was established by the Financial Stability Board(FSB) in April 2015 to urge individual companies to disclose their impact on climate change in their financial reports.

Summary of Disclosure Consistent with the TCFD Recommendations

Summary of our initiatives in line with the four thematic areas of disclosure (Governance, Strategy, Risk Management, Metrics and Targets) set out by the TCFD Recommendations are below. For more information, please refer to the SMBC Group TCFD Report.

Summary of Disclosure Consistent with the TCFD Recommendations zoom
Summary of Disclosure Consistent with the TCFD Recommendations zoom

Main initiatives