Response to conservation and restoration of natural capital (Working on TNFD)
Response to conservation and restoration of natural capital
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.
* Companies indicating their intention to disclose information based on the TNFD recommendations by 2024 or 2025.
For details, please refer to the "SMBC Group Sustainability Report."
* For details up to FY 2023, please refer to the "SMBC Group TNFD Report."
Examples of our initiatives
Finance Alliance for Nature Positive Solutions(FANPS)
In February 2023, SMBC Group, MS&AD Insurance Group Holdings, Development Bank of Japan, and the Norinchukin Bank established the Finance Alliance for Nature Positive Solutions (FANPS) to promote and support the nature positive transformation of corporate activities. FANPS provides solutions catalogs as well as TNFD support services to support customers’ nature positive management.
SMBC Forest
SMBC is a member of the Ministry of the Environment of Japan's 30 by 30 Alliance, which aims to conserve and protect 30% of land and sea areas by 2030. As part of this effort, SMBC owns approximately 220 hectares of forest in Isehara City, Kanagawa Prefecture as "SMBC Forest" which we plan to be certified as the ‘Nationally Certified Sustainably Managed Natural Sites’. We will work to realize a nature-positive and decarbonized society through initiatives such as biodiversity conservation, environmental education, and revitalization of the forestry industry.
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".
Natural Capital-Related Business
Natural Capital Management Promotion Analysis Loan
In April 2024, SMBC began offering the Natural Capital Management Promotion Analysis Loan, aimed at supporting customers' efforts in natural capital management. This loan involves diagnosing and analyzing customers' initiatives and disclosures related to natural capital management, and providing proposals for future challenges and countermeasures, thereby supporting the first steps towards promoting natural capital management.