NOMURA ASSET MANAGEMENT

NOMURA

The Principles for Financial Action Towards a Sustainable Society (Principles for Financial Action for the 21st Century)

The Principles for Financial Action towards a Sustainable Society (i.e., Principles for Financial Action for the 21st Century, "the Principles" hereafter) were established in Japan as the policy recommendation on formulating principles for financial institutions that are willing to take responsibility and play a necessary role in building a sustainable society. Its framework was devised in fiscal year 2011, under the appointment of the Ministry of the Environment as the Secretariat, and Ministry of Finance, Ministry of Economy, Trade, and Industry, and Ministry of Land, Infrastructure and Transportation as observers. Its aim is to set a policy across the financial industry in order to allow cooperative actions to be taken on various issues regarding environment, society and governance (ESG), directly promoting such efforts through their core business operations.
Nomura Group has worked on creating the framework of the Principles through voluntarily participating in the Drafting Committee composed of private financial institutions since its establishment in September 2010.
Nomura Asset Management has agreed to the basic concept of the Principles, and has signed on them together with Nomura Securities in January 2012, and since then has participated in activities mainly within the framework of securities firms, asset management, and investment banking working groups.

Principles for Financial Action for the 21st Century

  1. 1.We recognize our roles and responsibilities, and will promote those actions that contribute towards shaping a sustainable society while taking the precautionary approach into account.
  2. 2.We will contribute to work towards formation of a sustainable society globally through development and provision of financial products and services, leading to the development and increased competitiveness of "industries contributing to a sustainable society" as represented by the environmental technologies and services sector.
  3. 3.From the perspective of regional development and improvement in sustainability performance, we assist the environmental programs for small and medium enterprises. We will also back activities that will raise environmental awareness amongst citizens and support disaster readiness and community activities.
  4. 4.We recognize the importance of cooperation with various stakeholders and will also endeavor to take a proactive role in order to establish a sustainable society.
  5. 5.We will remain compliant with environmental laws and regulations, and will take active steps to reduce our own environmental footprints. We will actively work to reduce resource and energy consumption, and will also encourage our suppliers to do so.
  6. 6.We recognize activities that further raise the profile of sustainability as a business issue and will endeavor to disclose information on our activities.
  7. 7.In order to implement the above actions we will aim to raise awareness of environmental and societal issues of our own board and support them to take an active role through their normal duties.

Asset Management, Securities and Investment Banking Guideline

Asset Management Activities

  • Refer to ESG-related issues in the standards, regulations and guidelines of investment management and reflect them into the investment processes.
  • Specify ESG considerations in the proxy voting guidelines.
  • Analyze CSR reports within the selection process for investee companies and utilize them to improve its own CSR activities.
  • Utilize comments and advice from external experts to improve our own ESG activities.
  • Invest in ESG products that contribute to a sustainable society as long as it does not interfere with our fiduciary duty as an investment manager.
  • Proactively encourage companies to disclose ESG information and actively promote awareness and action on ESG issues towards companies.