Promoting SRI funds
Sompo Japan Nipponkoa Asset Management offers a socially responsible investment (SRI) fund to meet the needs of individual and institutional investors. The Sompo Japan Green Open fund, launched in September 1999, invests in companies that are proactive on the environment. It has grown to become one of the largest publicly offered SRI funds in Japan, with a net asset balance of 23.2 billion yen (as of April 30, 2017). Promoting investment in environmentally responsible companies is thought to give investors an indirect way to use their capital for environmental conservation. The fund also aims to promote environmental communication by conveying environmental information to investors, and facilitating feedback to the invested companies via surveys on their environmental management performance.
We also offer SRI funds that invest in companies that have been rated highly on ESG (Environment, Social and Governance) performance.
Promoting CSR Communication and ESG Awareness through SRI Funds
Sompo Japan Nipponkoa Asset Management works on CSR communications through its activities relating to SRI funds. With regard to the Sompo Japan Green Open fund, the company surveys approximately 400 companies each year to evaluate their environmental management performance and after analyzing the results, it provides the respondents with feedback. Furthermore, the fund’s monthly performance report for investors features portfolio companies’ environmental efforts while the quarterly newsletter includes the latest environmental trends and updates. In addition, the specialized report summarizes all portfolio companies’ environmental activities annually.
As described above, the company works to communicate environmental information as well as investment performance to Sompo Japan Green Open’s investors and corporate stakeholders. The company also makes similar efforts regarding its other SRI funds. The monthly report of Sompo Japan SRI Open, for instance, introduces the ESG efforts of portfolio companies.
Further, the company provides the information services to the targeted companies in "SNAM Japan ESG Investment Fund". The information contains ESG evaluation generated by the cooperation with SOMPO Risk Care Management Inc. The companies also refer other information such as "Evaluated Average" which helps to enhance their environmental policy.
The company will continue to promote dialogues with investors and corporations to enhance understandings of ESG investment and more active implementation of CSR financing.
SRI fund News / Sompo Japan SRI Open’s monthly investment report
Analysis of Social Responsibility and the Environmental Soundness of Companies
Sompo Risk Management & Health Care carries out corporate management analysis of each company’s level of contribution to building a sustainable society for the investment decision among six SRI funds, the investment trust products provided by the Sompo Japan Nipponkoa Asset Management.
The company also strives to promote environmental communication by proactively providing environmental information to investors. Good environmental practices of companies listed in the SRI funds are reported in weekly and monthly reports, while quarterly publishing a bulletin providing the latest news on the environment.
Companies that have responded to the company’s surveys are given a feedback on the results as well as on their relative status in the industry for each question — important reference data that can be used to improve their environmental management.
Through analysis of corporate social responsibility and environmental soundness, as well as dialogues and engagement with companies and investors, Sompo Risk Management & Health Care continuously promotes corporate social responsibility and environmental initiatives.
Japan’s Stewardship Code
Sompo Japan Nipponkoa and Sompo Japan Nipponkoa Asset Management declared their endorsement of the Japan’s Stewardship Code, called the Principles for Responsible Institutional Investors, and have disclosed detailed policies on their official websites.
The code calls on institutional investors to enhance the corporate value and support the sustainable growth of investee companies.
We engage in dialogue with investee companies based on a clear understanding of the significance and importance of this initiative.