Responsible Investment

image: Responsible Investment

As a responsible institutional investor, Nomura Asset Management aims to realize a sustainable and prosperous society by helping clients to build wealth. In addition to helping clients build wealth through the asset management business, we support the creation of social value by the companies held in our portfolios by realizing a virtuous cycle of investment (investment chain) through engagement and other efforts.

Highlights

Nomura Group has established the sustainable investment ratio as a KPI toward the realization of a sustainable society, including the achievement of the Sustainable Development Goals (SDGs) and the goals of the Paris Agreement, through our core business.
We received the highest rating for all reported items in the annual assessment by the Principles for Responsible Investment (PRI).

Sustainable Investment Ratio

73%

March 31, 2020

PRI Assessment Results

Received the highest rating A+

*in all categories
(FY2019/20)

Fundamental Approach

Nomura Asset Management contributes to the development of society by fulfilling our social responsibility of supporting the building of wealth of investors. Such activities include, proactive engagement with companies to enhance their corporate value (engagement activities), offering investment products identifying ESG issues and providing investment education.

We recognize that moves toward addressing ESG related issues are becoming increasingly important in supporting the virtuous cycle of the investment chain. As a responsible investor, we expect the companies in which we invest to manage their operations with an appropriate emphasis on material ESG related issues, while we ourselves also conduct our own business activities with a focus on ESG. More specifically, we are stepping up our initiatives to address issues related to climate change, natural capital and corporate social responsibility, based on the understanding that these are key longterm challenges. In March 2019, Nomura Asset Management published its ESG Statement, clarifying its efforts to promote initiatives related to ESG issues.

Nomura Asset Management

Responsible Investment Report

Nomura Asset Management ESG Statement

Driving Responsible Investment

ESG Integration

Nomura Asset Management considers corporate activities that contribute to solving the environmental and social issues indicated in the SDGs as new business opportunities and expect portfolio companies to reflect these activities in their management strategies. We believe that the supply of funds to companies from institutional investors will help resolve social problems and generate investment returns at the same time, thereby creating a virtuous cycle in the investment chain and helping to build a sustainable society. Meanwhile, our investment division is working to enhance integration, which is the incorporation of non-financial information in the investment process. This is based on our belief that a portfolio company’s management performance from a financial perspective and its approach to ESG, which is non-financial information, are closely related and impact one another. With respect to ESG assessment, which is the criteria for this, we give our own ESG ratings to portfolio companies based on ESG issues identified by our corporate analysts by individual sector and/or individual companies, as well as information on evaluation results from several external sources. We use these ratings in product origination and management.

ESG Engagement

Engagement Meetings

Nomura Asset Management regards engagement as an important activity for the improvement of enterprise value of portfolio companies. In addition to regular dialogue, Nomura Asset Management engages in dialogue aimed at resolving ESG issues with key companies that need to be further examined out of approximately 2,400 portfolio companies (as of December 31, 2019). In 2019, Nomura Asset Management engaged in ESG related dialogue with a total of 400 companies, and approximately 800 topics were discussed.

SDGs with Nomura
Nomura Report Download
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