Materiality in Investments
We aim to contribute to the medium- to long-term asset building
of beneficiaries through our asset management business. To
achieve this objective, materiality means an important task we
have set with the aim of improving the medium- to long-term
value and sustainability of investee companies and maintaining
the sustainability of society. To this end, we strive to
accurately grasp and share awareness of the situations not only
of companies but also of the entire industry to which they
belong.
Materiality in asset management is as follows, consisting of
perspectives on ESG and other general sustainability issues. We
then analyze this materiality from two perspectives:
sustainability and long-term returns and identify high core
materiality for both.
Critical
issues
Specific points of interest
Information disclosure
Environment
Climate change
Greenhouse gas emissions
Climate change risks and opportunities
Energy transition
Natural capital
Biodiversity
Circular economy
Responding to natural disasters other than climate
change
Water,Air and Soil pollution
Society
Social responsibility
Business and human rights
Contribution to a healthy and secure society
Supply chain management
Human capital
Human capital management
Diversity, Equity & Inclusion
Well-being
Governance
Improving corporate value
Governance structure
Risk management
Cyber security
Improvement in capital
efficiency（cross-shareholdings,etc）
Dialogue with stakeholders
Tax governance
Corruption
Other perspectives related to overall sustainability
Other sustainability issues
Intellectual property
DX, and Generative AI
Responding to international regulatory and market
changes
Process for identifying and
analyzing core materiality
Materiality Map
We will identify core materiality and reflect it in our engagement, voting rights exercise, and investment decisions, as well as apply it to a wide range of our business activities, including product development and sales strategies.
Climate change
We call for the identification of greenhouse gas (GHG) emissions, as well as climate change risks and opportunities, the formulation and implementation of business strategies that incorporate both aspects, and the oversight and evaluation of activity statuses.
Natural Capital
We call for our investee companies to contribute to the transition to a circular economy, identify biodiversity-related risks and opportunities, and appropriately formulate business strategies to advance nature-positive initiatives.
DE&I (Diversity, Equity & Inclusion)
We call for diversity and equal opportunity among all stakeholders of companies and for the elimination of discrimination and harassment.
Business and Human Rights
We call for our investee companies to support and respect international norms, and to appropriately address business and human rights issues not only within their own operations but also throughout their supply chains.
Improvement in capital efficiency
We call for an increase in ROE exceeding the cost of shareholders' equity and for a continuous and stable expansion of equity spread.
Governance structure
We call for the establishment of a governance structure regarding organizational design, the effectiveness of the board of directors, the role of external directors, and the executive remuneration system.
- Engagement and Proxy Voting
- ESG Integration
- Product development and sales strategies