Efforts to Fulfill Both Financial Roles and Social Responsibilities
As the pace of addressing sustainability issues through business activities accelerates in order to implement the Paris Agreement and the SDGs, sustainable finance is drawing attention, as seen in the expansion of ESG investment and international initiatives such as the PRI and PRB.
In order to address environmental and social issues and realize a sustainable society, it is necessary to accelerate the flow of investments and financing that leads to the solution for such challenges. The role that “finance” should play is becoming increasingly important.
SBI Group is committed to realizing a sustainable society by supporting the issuance of SDGs bonds, including green bonds, and investing in and financing businesses and companies that create “Sustainable Impact”.
In addition, each of the SBI Group's asset management companies is engaged in stewardship activities and ESG integration as a responsible institutional investor, and is working to enhance the sophistication of its investment management as a fiduciary.
The efforts of each group company to address environmental and social issues through financial functions is what fulfills their social responsibility as financial institutions and are in line with the SBI Group's management philosophy.
Support for the Issuance of Social Impact Bonds Including Green Bonds
SBI SECURITIES was registered as a "Registered Issuance Supporter" on the Structuring division of the "Green Bond Platform" for the Green Bond Issuance Promotion System Maintenance Support Project, run by the Ministry of the Environment.
This project establishes a registration and disclosure system for those who support green financing. Recognizing that achieving Japan's goals, such as carbon neutrality and a decarbonized society by 2050, requires extremely large investments, the project expects to enhance and strengthen the domestic support system for raising capital through green bonds and other instruments, and seeks to foster momentum for autonomous financing activities.
SBI SECURITIES had conducted 42 internet offerings for a combined total of approximately JPY 13.8 billion in both yen and foreign currency denominated bonds by June 2023. We will continue utilizing our expertise to develop SDGs bonds including green bonds in the Japanese capital market.
＜Details of support conducted by SBI SECURITIES for the issuance of green bonds, etc.＞
| 1. Initial stage of issuance |
| Proposals for practices and timelines related to issuance procedures such as selection, evaluation and certification of the project based on the issuers' intention for the issuance of green bonds. Provision of information on green and ESG-related regulations and market trends in Japan and overseas. |
| 2. Issuance planning state |
| Formulation of concrete plans such as identification of appropriated business, fund management and establishment of a reporting system, and so on. Setting up consultations with external review institutions such as issuers, consulting organizations and rating agencies. |
| 3. Pre-issuance stage |
| Support for the preparation of various disclosure documents regarding the use of funds and fund management. Support for the preparation of drafts of disclosure documents at the time of issuance of green bonds, such as opinions written by rating agencies and other external review organizations and prospectuses. Support for the preparation of IR materials related to green bonds. |
| 4. Issuance stage |
| Support for the underwriting sales such as documentation and arrangements for Debt IR for investors. |
Finance to Projects and Enterprises with "Sustainable Impact"
SBI Shinsei Bank endeavors to contribute to building a sustainable society through financing of projects and enterprises with "Sustainable Impact", a concept that integrates sustainability and ESG/SDGs with active and positive social impact.
SBI Shinsei Bank endeavors to contribute to building a sustainable society through financing of projects and enterprises with "Sustainable Impact", a concept that integrates sustainability and ESG/SDGs with active and positive social impact.
In addition, as like SBI SECURITIES, SBI Shinsei Bank has also been registered as a "Registered Issuance Supporter" for Green Loans and Sustainability-Linked Loans on the "Green Bond Platform" for the Green Bond Issuance Promotion System Maintenance Support Project, run by the Ministry of the Environment.
SBI Shinsei Bank provides information and proposes solutions to clients considering financing through sustainable finance using Green Loans and Sustainability-Linked Loans.
In addition to the above financing, SBI Shinsei Bank offers financial products that support customers' sustainability management, such as social loans, positive impact finance, and climate transition finance. Furthermore, by utilizing the expertise and knowledge cultivated through providing sustainable finance and impact finance, the bank provides advisory services and various solutions to corporate customers and regional financial institutions to promote sustainability/ESG management.
＜Details of SBI Shinsei Bank's support for green loans, etc.＞
| 1. Providing information |
| Provide information and recommendations on green finance not only to listed companies and large corporations, but also to a wide range of SMEs and others. |
| 2. Financing support |
| For clients considering procurement through green finance, SBI Shinsei Bank explain specific practical details and provide support for procurement |
| 3. Sustainable finance assessment |
| SBI Shinsei Bank has developed a sustainable finance framework that conforms to international sustainable finance principles, and a special department within the bank assesses the conformity of the finance provided by SBI Shinsei Bank with this framework. SBI Shinsei Bank reduces the burden on clients in relation to sustainable finance and supports their procurement through sustainable finance. |
| 4. Others |
| SBI Shinsei Bank introduces clients to companies that support their carbon neutral initiatives. |
SBI Shinsei Bank also offers financial functions to address environmental and social issues, such as providing “Sustainability Deposits” with limited time and amount to provide individual customers interested in sustainability with opportunities to participate in addressing these issues through finance.
SBI Shinsei Bank
Investment in Venture Companies Tackling Social Issues
SBI Investment, a core company in the SBI Group's investment business, has been actively supporting companies that are leading the next generation of society by tackling environmental and social issues, under the management philosophy of becoming a leading company as a "New Industry Creator" responsible for creating and nurturing the core industries of the 21st century. SBI Investment considers the Sustainable Development Goals (SDGs) as one of the criteria for investment decisions, and whether a company contributes to the growth and development of a sustainable society is also a factor in investment decisions.
Furthermore, even after the investment is made, SBI Investment provides "full hands-on support" and utilizes its expertise and network within and outside the SBI Group to support investee companies in addressing the ESG issues they face.
In recent years, SBI Investment has been actively expanding its investments into areas that align with the trends of the times, such as green innovation, ESG-conscious impact investments, as well as metaverse and Web3.
Shinsei Corporate Investment launched an impact investment team in January 2017 and established an impact investment fund which became the first by a Japanese bank group. They have been actively investing in projects and businesses that contribute to solving social issues through promoting impact investment, such as providing growth support to "childcare, nursing care, and businesses that promote new work styles".
SBI Investment
Shinsei Corporate Investment （Japanese only）
As a Responsible Investor
In the SBI Group's asset management and investment businesses, each investment entity flexibly considers ESG factors in accordance with their respective investment approaches, incorporating ESG elements into investment decisions in a manner consistent with the investment philosophy of each strategy.
In addition, in the Investment Business (private equity), certain sectors may be excluded from investment targets, but this is determined based on the business characteristics of each Group company, and there are no restrictions or obligations that apply to the entire group in common.
Initiatives in Asset Management Business
Each asset management company within the SBI Group has announced its acceptance of the Principles for Responsible Institutional Investors (Japan's Stewardship Code) and is engaged in stewardship activities. Furthermore, they are promoting effective ESG investment tailored to the characteristics of each fund, such as "ESG integration," which incorporates ESG evaluation into the selection of investment targets, and "ESG monitoring," which confirms the ESG investment status of external asset managers. At the same time, they are working to enhance the sophistication of investment management based on each company's investment philosophy and policy, with the expectation of improving performance.
SBI Asset Management（Japanese only）
Rheos Capital Works
SBI Okasan Asset Management（Japanese only）
Investment Exclusion Areas in Investment Business (Private Equity)
The investment business (PE) does not invest in companies involved in tobacco, pornography, fossil fuels such as oil and coal, or weapons manufacturing, which are considered to have a negative impact on the environment and society, including climate change. These exclusions are determined based on regional and global agreements such as the UN Global Compact and international labor standards. Investments are made only after frontline staff and the Investment Committee, which conducts investment reviews, have checked that the products and operations of the investee companies do not fall under these exclusions.
Promoting Responsible Financing and Investment
In July 2021, the Group established the Responsible Investment and Lending Policy with the aim of upgrading the system for promoting responsible investment and lending. Transactions with partner companies that do not fully consider environmental and social issues is seen as a management risk, and we prohibit or restrict transactions based on the recognition that there are serious risks to the environment and society when investing and lending for certain types of projects.
From the perspective of responding to climate change, based on a precautionary approach, we do not make new investments for the construction of new coal-fired thermal power plants, and we are reducing the amount of investment and lending for existing coal-fired thermal power plants.
Responsible Investment and Lending Policy
SBI Investment and SBI Shinsei Bank have also signed the "Japan Impact-driven Financing Initiative", a collaborative initiative of financial institutions, to create a better society through investment while balancing social and environmental issue resolution with financial returns, and are working to further improve the effectiveness of their investments.
