"Meeting the needs of the present, without compromising the ability of future generations to meet their own needs."
- International Institute for Sustainable Development, Brundtland Report
Nikko AM's 2019 Sustainability Report
We are pleased to be bringing you Nikko AM’s 2019 Sustainability Report. In it, you will read about our responsibility as an investment manager and fiduciary that contributes to a sustainable society, considering ESG as a part of long-term investment strategies. We share how each of our diverse investment teams around the world integrates ESG into the asset class they manage.
This report also presents the ESG initiatives that we are engaging in with our own staff and resources, using the UN’s Sustainable Development Goals as guidance. In particular, we focus on diversity and inclusion (D&I), reducing inequalities, and environment and climate.
Looking ahead, we are excited to continue working towards a better future for our stakeholders and the communities we operate in.
At Nikko AM, sustainability is a Firm-wide collaboration effort.
Whether Nikko AM is integrating ESG into its investment management processes, or focusing on its sustainability efforts in corporate activities, the ultimate goal is to run the Firm responsibly and sustainably for the benefit of all of the stakeholders in the ecosystem. Nikko AM believes its ability to succeed is dependent on honestly addressing today’s challenges to sustainability, and better understanding what sustainability means for an asset manager.
Carbon Neutral Organisation
Nikko Asset Management Co., Ltd. (Nikko AM) has been certified as carbon neutral for the first time, after entering into a carbon offset programme with the UK-based international organisation Carbon Footprint Ltd.
Nikko AM’s Corporate Sustainability Department aggregated the travel and financial data from the Firm’s global offices in Tokyo, Singapore, Sydney, Melbourne, Auckland, New York, and London.
Nikko AM TCFD Report 2019
This report reflects Nikko AM’s response to the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD).
We firmly believe that activities addressing ESG, including climate change, should not be separated from investment activities. It is our fiduciary duty to evaluate climate change risks and opportunities when making investment decisions on behalf of our clients.
This report covers January to December 2019 and is updated annually. This transparency reflects our commitment to engage and develop our internal capacity, and promote greater collaboration within and beyond the investment community.
Fiduciary & ESG Principles
Nikko Asset Management Co., Ltd. (“Nikko AM”), as an asset management company, acts as a fiduciary on behalf of its clients and is firmly committed to putting its clients’ best interest first. It places fiduciary and ESG principles at the highest guiding theme of its corporate value and actions.
Nikko AM strongly believes that investments by considering environmental, social and governance (“ESG”) are inherent to long-term corporate value creation, and contribute to the realization of sustainable economic growth. As such, Nikko AM views ESG issues as an integral part of its fiduciary duty and endeavours to incorporate ESG principles in all its investment processes.
Nikko AM, for the realization of high-quality financial services that truly meet clients’ needs, always endeavours to act in the spirit of the fiduciary and ESG principles, and continually makes effort toward further improvement with the ideas of innovation.
Nikko AM strongly believes that considering environmental, social and governance (“ESG”) factors is inherent to long-term corporate value creation, and contributes to the realisation of our company’s sustainable growth. As such, Nikko AM views ESG as an integral part of its fiduciary duty and endeavours to incorporate ESG principles in all its investment processes.
We see the implementation of ESG factors in investment processes as an ongoing journey of continuous enhancement in how best to apply the highest standards.
Important Information on Investment Advisory Agreements and Discretionary Investment Agreements
Diversity & Inclusion
Workplace diversity is valuing differences between people, whether by race, gender, age, disability, sexual orientation or religion. Nikko AM strongly believes that such diversity is not just a programme, but a business strategy.
The Firm has established Working Groups across all regions to ensure constant enhancement of existing D&I efforts.
Employees are the heart of Nikko AM's efforts to give back. In addition to various charitable donation programmes, the Firm also aims to engage in volunteering efforts year-round.
The Firm believes it has responsibility to act in an eco-friendly way in its corporate activities, and employees have similarly voiced this stance. Through an internal survey, in addition to implementing efforts towards meeting all SDGs, employees voted to particularly focus on the environment. Initiatives to help accomplish this are organized by employees. To further environmental action, this bottom-up push is complemented by the Firm’s top-down Environmental Policy laid out in 2010.