In July 2006, we signed the United Nations-backed 'Principles for Responsible Investment Initiative' (PRI) and we have publicly stated our policy to consider ESG (E: Environment, S: Society, G: Governance) in our investment process.
We have announced our acceptance of The Japan Stewardship Code and we have officially stated our views and efforts towards each principle.
As an asset management specialist, we have fiduciary duty towards pension and investment fund beneficiaries. As part of this, we have a clear sense of social responsibility in developing a sustainable society, increasing corporate value and developing a healthy capital market. We feel that addressing issues concerning the E (Environment), S (Society) and G (Corporate Governance) in our investment research and decision-making will not only lead to the improvement of our long term investment plan but ultimately fulfill our social responsibility. Below are our policies to approach ESG.
- Realization of ESG issues
From the perspective of long term investment and risk management, we will strive to understand ESG related issues and the affect it will have on the value of our investment asset.
- Considering ESG in the Investment Process
From our fiduciary duty perspective, we will attempt to consider ESG related issues in our investment process.
- Taking ESG in account in the development of financial products
Develop and invest in products that take ESG related issues into account in order to answer to the needs of our clients in developing a sustainable society through investment.
- Communicating with our portfolio companies
To address ESG related issues including the enhancement of corporate governance and increasing corporate value in the long term, we will actively communicate with our portfolio companies and use our voting rights accordingly.
We believe that Non-financial information, an important part of which is comprised of ESG factors, is essential for the quality of long-term earnings projection. NAM integrates ESG evaluation into the investment process to further improve the precision of our projection, leading to better performance in the long-term.