• International Initiatives
• External Evaluations

International Initiatives

Signing on to Principles for Responsible Investment (PRI)

The “Principles for Responsible Investment (PRI)” is recognized as the international investors and the financial industry working together for the realization of the following six principles. The PRI is promoted by the United Nations Environment Program Finance Initiative (UNEP FI) and the United Nations Global Compact (UNGC). The PRI encourages the incorporation of environmental, social, and governance (ESG) issues into investment decision-making, aiming to help the beneficiaries enhance long-term investment performance and better fulfill their fiduciary duty.
SRM agrees with the basic approach of PRI and became a signatory in January 2022.

＜The six Principles for Responsible Investment＞

1. We will incorporate ESG issues into investment analysis and dicision-making processes.
2. We will be active owners and incorporate ESG issues into our ownership policies and practices.
3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
4. We will promote acceptance and implementation of the Principles within the investment industry.
5. We will work together to enhance our effectiveness in implementing the Principles.
6. We will each report on our activities and progress towards implementing the Principles.

Support for the TCFD recommendations

The TCFD was established by the Financial Stability Board for the purpose of reviewing financial institutions’ climate-related information disclosure and response.
The TCFD announced recommendations to the effect that financial institutions, companies, etc. understand the risks and opportunities presented by climate change and disclose the effects of climate change on business to their stakeholders including investors.
SRM supported the recommendations of the TCFD in November 2021.

The TCFD Consortium was established as a forum for the companies and financial institutions, who support the TCFD’s recommendations, to jointly promote their efforts and discuss companies’ effective information disclosure and financial institutions’ use of such information for making appropriate investment decisions. SRM joined the TCFD Consortium in April 2022.

Signing the Principles for Financial Action for the 21st Century

The Principles for Financial Action for the 21st Century (PFA21) were formulated in October 2011 as an action guideline for financial institutions wishing to fulfill the responsibilities and roles necessary for the formation of a sustainable society, with the Ministry of the Environment working as the secretariat.  Based on its business content, each signatory financial institution will base their efforts as far as possible on seven principles.  One of the features is that it is positioned as a starting point for collaboration without being restricted by business type, scale, region, etc.
SRM agrees with the basic approach of PFA21 and became a signatory in December 2021.

＜Seven Principles＞

• [Principle 1] Basic posture
  Recognizing the responsibilities and roles that financial institutions themselves play for the formation of a sustainable society, we aim to create positive impacts on the environment, society and economy, and mitigate negative impacts. Take the initiative in practicing these efforts.
• [Principle 2] Contribution to a sustainable global society
  We will lead the formation of a sustainable global society by developing and providing financial products and services that contribute to the creation and development of industries and businesses through innovation, toward steady and fair transitions in society.
• [Principle 3] Contribution to the formation of sustainable communities
  We will support the solution of environmental, social and economic issues based on regional characteristics, and lead the formation of sustainable local communities by improving the inclusiveness and resilience of the region.
• [Principle 4] Human resource development
  Recognize the importance of human capital in financial institutions, and develop human resources who can think for themselves and take action on environmental and social issues.
• [Principle 5] Collaboration with various stakeholders
  Recognizing the importance of cooperation among various stakeholders, including financial institutions, in order to form a sustainable society, we not only participate in such efforts but also play an active role.
• [Principle 6] Building a sustainable supply chain
  Actively tackle environmental issues such as global warming and biodiversity and social issues such as human rights, and build a sustainable supply chain through constructive engagement with business partners including investment and loan partners.
• [Principle 7] Information disclosure
  Recognizing that activities to enhance the sustainability of society are management issues, we will disclose our efforts to a wide range of stakeholders and make constant improvements based on domestic and international trends and disclosure frameworks.

External Evaluations

GRESB Real Estate Assessment

GRESB is a benchmark assessment for annually evaluating environmental, social, and governance (ESG) considerations of real estate companies and funds, as well as the name of organization. It was established in 2009 primarily by major European pension fund groups that led the Principles for Responsible Investment (PRI). This assessment is not conducted with respect to individual real estate; it is an assessment of the environmental and sustainability initiatives pursued by each real estate company and REIT.
SLR began participating in the GRESB Real Estate Assessment in 2021, and this year it is taking part for the fourth time. In the 2024 GRESB Real Estate Assessment, SLR received five stars for the third consecutive year, the highest rating, which is based on the GRESB overall score and its quintile position relative to global participants.