The SMBC Group publishes its 2024 Sustainability Report

Sumitomo Mitsui Financial Group has published the “SMBC Group Sustainability Report 2024”. Previously, the SMBC Group has been issuing separate reports for each social issue, such as the “SMBC Group TCFD Report” for climate change, the “SMBC Group TNFD Report” for natural capital, and the “SMBC Group Human Rights Report” for respect for human rights. However, these social issues are not independent of each other but are closely interconnected, and an integrated approach is considered essential for their resolution.

With this understanding, SMBC Group has decided to integrate these three reports on climate change, natural capital, and human rights, and additionally include their initiatives related to human capital, to provide stakeholders with a clear direction of SMBC Group’s integrated strategy for addressing these social issues. This Report is structured according to the four components recommended by international sustainability disclosure standards: governance, strategy, risk management, and metrics and targets, to outline the strategic direction.

Strategic Focus Areas

1. Climate Change

• Goal: Contribute to the decarbonization of the real economy and achieve net zero for SMBC Group.
• Approach: (I) Providing comprehensive financial and non-financial solutions, leveraging the Group’s strengths in new energy technologies, transition support, and fostering business co-creation; (2) enhancing risk management at the policy, portfolio, and individual company and/or project levels through sector-specific GHG emission reduction targets and enhanced risk analysis.

2. Natural Capital

• Goal: Achieve nature-positive outcomes as a pioneer in the financial industry.
• Approach: (I) Developing solutions for a circular economy, including establishing closed-loop systems for specific products and promoting circular/smart use of resources; (II) investing in the conservation and restoration of natural capital and biodiversity; (III) enhancing nature-related risk management by analyzing the dependence and impact on natural capital in high-risk sectors.

3. Human Rights

• Goal: Respect human rights across the entire supply chain, not only preventing and mitigating negative impacts but also contributing to solving social issues related to poverty, inequality, and DE&I.
• Approach: (I) Conducting human rights due diligence for all investment and loan activities; (II) supporting human rights initiatives and improving living standards through financial inclusion; (III) establishing a feedback and complaint mechanism for customers; (IV) implementing the “SMBC Group Alarm Line” as an internal reporting system for human rights violations; (V) working towards establishing a “remedy and grievance mechanism” for stakeholders, including suppliers.

4. Human Capital

• Goal: Create opportunities for employees with diverse careers and values to thrive, contributing to value creation.
• Approach: (I) Implementing the “SMBC Group Talent Policy” to attract, develop, and retain talent; (II) focusing on leading investment in key areas like wholesale and digital, succession planning, and talent exchange; (III) supporting employee growth and well-being through independent career development and enhanced employee well-being initiatives; (IV) maximizing team performance by promoting DE&I and fostering employee engagement.

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