CSR REPORT 2015
1 CSR Report 2015Sumitomo Mitsui Financial Group
Management Environment Next Generation Community Management Base
Contents 1Contents/Companyprofile 2Editorialpolicy/CSRcommunicationtoolsManagement 3CommitmentfromtheTop 5CSRatSMFG 5Basicviews 6IntegraldevelopmentofCSRandbusinessactivities 6SupportforinitiativesinJapanandoverseasand CSRguidelinesusedasreferences 6CSR:InourDNAfor400years 7Actionsonvariousprinciples 8CSRmanagement 8CSRtrainingtailoredtoemployeegrades 9StakeholderEngagement 9TheSMFGGroup’scontributiontothesustainable developmentofsocietythroughitsstakeholders 9Relationshipwithourfourmajorgroupsof stakeholders 9PDCAcycleinabidtoresolvepriorityissues10PriorityIssues(Materiality)thatSMFGshouldaddress 10PriorityissuesthatSMFGshouldaddress 11Identifyingtheissues 12Fiscal2014initiatives
13Reportaboutthreepriorityissues15Environment 16Overviewoffiscal2014activitiesandissues 16Promotionofenvironmentalmanagementintegrated withbusiness 17Reducingenvironmentalimpact 18Managingenvironmentalrisks 18Promotionofenvironmentalbusinesses 21Environment-relatedsocialcontributionactivities
22NextGeneration 23Overviewoffiscal2014activitiesandissues 23Supportfornextgenerationassetinheritanceand businesssuccession 24Contributingasafinancialinstitutiontoemerging countries 25Contributiontoraisingtheleveloffinancialliteracy 26GlobalHRdevelopment 26Work-lifebalanceandworkplacewithdiversity
27Community 28Overviewoffiscal2014activitiesandissues 28ReconstructionfortheGreatEastJapanEarthquake 29Contributetoachievinganddevelopingsafeand securecommunities 30Community-basedactivitiesledbyofficersand employees 30Effortstosolvesocialissuesbycollaboratingwith NGOsandNPOs
ManagementBase31Keyissuestobeaddressedonasolidmanagementbase 32Customersatisfaction 32Pleasantworkplaceandworkenvironment 33Corporategovernance 33Riskmanagementsystem 34Rigorousinformationmanagement 34Fairbusinesspracticesandcompetition 34Severinganyrelationswithanti-socialforces
35Thirdpartyopinion/ RecognitionforSMFGCSRinitiatives36SMFGGrouppoliciesandframework/ SMFGdata
●Companyprofile (March31,2015)Company Name SumitomoMitsuiFinancialGroup,Inc.
Business Description
Managementofbankingsubsidiaries(underthestipulationsofJapan’sBankingAct)andofnon-banksubsidiaries,aswellastheperformanceofancillaryfunctions
Establishment December2,2002
Head Office 1-2,Marunouchi1-chome,Chiyoda-ku,Tokyo,Japan
Chairman of the Board MasayukiOku
President KoichiMiyata(ConcurrentDirectoratSumitomoMitsuiBankingCorporation)
Consolidated Total Income ¥4,851.2billion
Consolidated Net Income ¥753.6billion
Consolidated Total Assets ¥183,442.6billion
Consolidated Total Net Assets ¥10,696.3billion
Capital ¥2,337.8billion
Stock Exchange Listings
TokyoStockExchange(FirstSection),NagoyaStockExchange(FirstSection)Note:AmericanDepositaryReceipts(ADRs)arelistedontheNewYorkStockExchange.
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Contents / Editorial policy Management Environment
W
2 CSR Report 2015Sumitomo Mitsui Financial Group
Management Environment Next Generation Community Management Base
SMFGhasputinplacethisCSRreportinanefforttoconveytoitsstakeholdersthewiderangeofinitiativesundertakenandtheroleplayedbytheGrouptohelpcreateasustainablesociety.InordertoensurethatreadersfullyunderstandthatouractivitiesarebasedontheunderlyingprinciplethatthefulfillmentofCSRistheessenceofbusinessitself,andthemeasureswehavetakentorealizethisconviction,weherereportonthefullrangeofCSRinitiativesundertakenbytheGroup.ThisCSRreportaimstocovercharacteristicinitiatives,withdescriptionsofourlatestmeasures,andtoincludebroaderdisclosurecategories.WehavealsoprovidedlinkstoexamplesofinitiativesatindividualGroupcompanies,makingeffectiveuseofdisclosurereportsonthewebsitesofthecompaniesinquestion.
AttheSMFGGroupweregardcommunicationwithourstakeholdersasvitaltothesuccessofourCSRinitiatives,andforthisreasonweengageininformationdisclosuretargetedatspecialistsaswellasourbusinesspartnersandcustomersviathefivecommunicationinterfacesdescribedbelow.
Reportingperiodandotherinformation◦ReportingPeriod
Thefiscal2014period,the12-monthsfromApril1,2014toMarch31,2015Note:TheReportcontainsadditionalinformationincluding
certainup-to-datedataaswellasfutureprospectswhereconsideredOctober2015.
◦MonthofIssueOctober2015
◦ContactInformation100-00051-2,Marunouchi1-chome,Chiyoda-ku,Tokyo,JapanSumitomoMitsuiFinancialGroup,Inc.TEL:+81-3-3282-8111
Scopeofthisreport◦SumitomoMitsuiFinancialGroup,Inc.◦SumitomoMitsuiBankingCorporation◦SumitomoMitsuiFinanceandLeasingCompany,Limited◦SMBCNikkoSecuritiesInc.◦SMBCFriendSecuritiesCo.,Ltd.◦SumitomoMitsuiCardCompany,Limited◦CedynaFinancialCorporation◦SMBCConsumerFinanceCo.,Ltd.◦TheJapanResearchInstitute,Limited◦OtherGroupCompanies
(THEMINATOBANK,LTD.,KansaiUrbanBankingCorportaion)
ReferenceguidelinesWerefertotheGRI“SustainabilityReportingGuideline(G4).”Note:GRI(GlobalReportingInitiative):Establishedasan
internationalstandardforsustainabilityreporting,complierssetupaninternationalorganizationGRIin1997toencourageitsadoptionworldwide.
CSRReport2015(PDFversion=thepresentreport)Inadditiontoexplainingourapproachtocorporatesocialresponsibilityandtodialogwithourstakeholders,intheCSRReport2015wehaveprovidedanoverviewofmeasurestakeninfiscal2014inlinewithourreviewofpriorityissues(Materiality).W Web http://www.smfg.co.jp/english/
responsibility/report/report2015.html
CSRReport2015PerformanceDataversionThisisanumericaldatareportforanalystsandotherspecialistsdetailingtheresultsandplansofalltheSMFGGroupcompaniesintheCSRsphereaswellasperformancedataontheenvironmentandwithrespecttothecompanies’workforces.W Web http://www.smfg.co.jp/english/
responsibility/report/report2015.html
SMFGCSRwebsiteThisisawebsitefordatafromeachSMFGcompany.ItenablesustoensurethecompletenessofourinformationdisclosurerelatingtoCSRactivitiesasportalsiteofthewholeSMFGGroup.W Web http://www.smfg.co.jp/english/responsibility/
CSRCommunicationBookWeusethisbookletasatoolforcommunicationwithourcustomers,providingthemwithaneasy-to-understandintroductiontoCSRinitiativesundertakenbyeachSMFGcompany,withaprimefocusonourpriorityissues(Materiality).W Web http://www.smfg.co.jp/responsibility/
report/book/(Japaneseonly)
“SAFE”CorporateenvironmentalmagazineThisisamagazineonenvironmentalbusiness-relatedinformationdistributedtoourbusinesspartnersandcorporatecustomersanddevotedtothethemeofinformationrelatingtodailylifeandtheglobalenvironment,aswellastotheroleplayedinenvironmentalpreservationbyfinancialservices.W Web http://www.smfg.co.jp/english/responsibility/magazine/
Editorial policy CSR communication tools
3 CSR Report 2015Sumitomo Mitsui Financial Group
Contents / Editorial policy Environment Next Generation Community Management Base
Commitment from the Top
Contributing to the sustainable growth of society as a global financial group
Infiscal2014,theJapaneseeconomycontinuedtorecovermoderatelyafteratemporarydipineconomicactivity,centeredonindustrialproduction,duetoaslumpinconsumerdemandaftertherushofpurchasingaheadoftheconsumptiontaxratehikeinApril2014.OutsideJapan,althoughemergingcountrieslackedgrowthmomentum,economiescontinuedtorecoverledbydevelopedcountries.TheU.S.economycontinuedtoimprove,drivenbydomesticdemand,andtheEuropeaneconomiesmoderatelyrecovereddespitesovereigndebtissues.Further,inFebruary2014JapanintroducedthePrinciplesforResponsibleInstitutionalInvestors(Japan’sStewardshipCode),followedinJune2015bytheapplicationoftheCorporateGovernanceCodetolistedcompanies.Withtheseandothermeasures,companiesarenowrequiredmorethanevertoimplementeffectivecorporategovernance,undertakeenvironmentalandsocialinitiatives,andcooperatewithstakeholders.
Weimplementedvariousinitiativestoachievethemanagementgoalsofourmedium-termmanagementplanforthethreeyearsfromfiscal2014tofiscal2016announcedinMay2014.Specifically,atourbankingunit,SumitomoMitsuiBankingCorporation(SMBC),weenhanceditsbusinessstructuretobetteraddressourclients’diversifyinganddevelopingneeds.ThisincludedincreasingthenumberofCorporateBankingDepartments,establishinganewareamarketingstructure(AreaMainOffices)andintensifyingthecollaborationwithSMBCNikkoSecurities.
TheglobaleconomyandCSRexpectedofSMFGGroupasafinancialgroup
Fiscal2014initiatives
KoichiMiyataPresidentSumitomoMitsuiFinancialGroup,Inc.
TheSMFGGroup’smanagementphilosophyisasfollows:・Wegrowandprospertogetherwithour
customers,byprovidingservicesofgreatervaluetothem.
・Weaimtomaximizeourshareholders'valuethroughthecontinuousgrowthofourbusiness.
・Wecreateaworkenvironmentthatencouragesandrewardsdiligentandhighly-motivatedemployees.
And,webelievethatthefulfillmentofourcorporatesocialresponsibilitiesliesattheverycoreofhowtheGroupismanaged.Inparticular,wearecontributingtotherealizationofasustainablesocietythroughtheimportantrolethatweplayinsocietyandbusinessactivitiesasafinancialgroup.WerecognizethisasasignificantrolethatisrequiredoftheGroup,andwewillcontinueoureffortstofulfillit.
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Ourbasicgrouppoliciesforfiscal2015,thesecondyearofthemedium-termmanagementplan,areasfollows:“acceleratekeyinitiativesinaccordancewithmanagementgoals,produceresults,andmovereformforwardvigorouslysothatourclientscantrulybenefitfromourbusinessmodeltransformationthisfiscalyear”and“anticipatechangesandbeproactive,makeadifferencewithSMFG/SMBC’sgenba-ryoku(on-the-groundcapabilities),andcreatebusinessopportunities.”WewillcontinuetomakeeveryefforttocontributetotheJapanesegovernment’songoinginitiativestorevitalizetheeconomyasaleadingfinancialgroupinJapan.Atthesametime,wewillmoveinitiatives
Contributingtothesustainablegrowthofsocietyasaglobalfinancialgroup
Overseas,wemadesteadyprogressinexpandingtheSMBCofficenetworkintopromisingmarkets.Wealsostrengthenedourrelationshipwithleadinglocalfinancialinstitutions,includinginvestinginACLEDABankinCambodiaandacquiringadditionalsharesofTheBankofEastAsiainHongKong.OurCSRinitiativeshavethreepriority(materiality)issues.Theyareenvironment,nextgenerationandcommunity.WeareleveragingthebusinessbaseofourGroupcompaniestoaddresstheseissues.DetailsofsomeoftheseinitiativesareexplainedinlatersectionsofthisCSRReport.Pleasetakealook.
forwardforoursustainablegrowth.SMFGwillalsosponsortheTokyoOlympicandParalympicGamesin2020asaGoldPartnerinthe
“Banking”categoryasoneofourinitiativestocontributetotheeconomicgrowthofJapan.In2015,thePost-2015DevelopmentAgendawasadoptedattheUnitedNationssummitinSeptemberasasetofgoalstosucceedtheMillenniumDevelopmentGoals(MDGs)thatwereagreedin2000.Further,atthe21stSessionoftheConferenceofPartiestotheUnitedNationsFrameworkConventiononClimateChange(COP21),tobeheldattheendofNovember2015,participantsareexpectedtoreachanagreementoninternationaleffortsonclimatechangefrom2020onwards.Inlightofsuchinternationalchallenges,wefurtherrefinedourdefinitionoflastyear’spriority(materiality)issuesbasedontheG4SustainabilityReportingGuidelinesbyGlobalReportingInitiative(GRI)andinternationalframeworksrelatingtosocialresponsibility.Wethen,withactiveinputsfromexperts,assessedtheissuesandchallengestakingintoaccountouractivitiesinfiscal2014.Wewillreflecttheresultsinourfutureactivities.Inthisway,wearerespondingtofeedbackfromallourstakeholdersinordertocontributetothesustainablegrowthofoverallsocietybyfulfillingourroleasaglobalfinancialgroup.Webelievethatwecanenhanceourcorporatevaluebyworkingtogetherwithyou,andhopethatwecancontinuetocountonyourunderstandingandsupportintheyearsahead.
September2015
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Intheconductofitsbusinessactivities,SMFGfulfillsitssocialresponsibilitiesbycontributingtothesustainabledevelopmentofsocietyasawholethroughofferinghigheraddedvalueto1)customers,2)shareholdersandthemarket,3)theenvironmentandsociety,and4)employees.
CSR at SMFG
Today,modernsocietyfacesdiverseissuessuchasglobalwarming,rapidpopulationgrowth,anddecliningbirthrateandagingofthepopulationintheadvancedcountries.TheSMFGGroupbelievesthatitisourGroup’ssocialresponsibilities,ourCSR,toremindusofandpracticetherolesastheglobalfinancialgroupforresolvingissuesforthesustainabledevelopmentofthesociety.
SMFGhassetforththedefinitionandcommonprinciplesfor“businessethics”forCSRinordertoclearlydescribeandeffectivelypromoteCSRactivitiesintheGroup.
1.SatisfactoryCustomerServicesWeintendtobeafinancialservicesgroupthathasthecompletetrustandsupportofourcustomers.Forthispurpose,wewillalwaysprovideservicesthatmeetthetrueneedsofourcustomerstoassuretheirsatisfactionandearnconfidenceintheGroup.
2.SoundManagementWeintendtobeafinancialservicesgroupthatmaintainsfair,transparent,andsoundmanagementbasedontheprincipleofself-responsibility.Forthispurpose,alongwithearningthefirmconfidenceofourshareholders,ourcustomers,andthegeneralpublic,wetakealong-termviewofourbusinessandoperateitefficiently,andactivelydiscloseaccuratebusinessinformationabouttheGroup.Throughtheseactivities,weworktomaintaincontinuedgrowthbasedonasoundfinancialposition.
3.ContributingtoSocialDevelopmentWeintendtobeafinancialservicesgroupthatcontributestothehealthydevelopmentofsociety.Forthispurpose,werecognizetheimportanceofourmissiontoserveasacrucialpartofthepublicinfrastructureandalsooursocialresponsibilities.Withsuchrecognition,weundertakebusinessoperationsthatcontributetothesteadydevelopmentofJapanandtherestoftheworld,andendeavor,asagoodcorporatecitizen,tomakeapositivecontributiontosociety.
4.ProactiveandInnovativeCorporationCultureWeintendtobeafinancialservicesgroupforwhichallofficersandemployeesworkwithprideandcommitment.Forthispurpose,werespectpeopleanddevelopemployeeswithextensiveprofessionalknowledgeandcapabilities,therebycreatingaproactiveandinnovativecorporationculture.
5.ComplianceWeintendtobeafinancialservicesgroupthatalwayskeepsinmindtheimportanceofcompliance.Forthispurpose,wereflectourawarenessofBusinessEthicsinourbusinessactivitiesatalltimes.Inaddition,werespondpromptlytodirectivesfromauditorsandinspectors.Throughtheseactions,weobservealllawsandregulations,andupholdmoralstandardsinourbusinesspractices.
●SMFG’sGroup-wideCSRphilosophy:“businessethics”
●SMFG’sdefinitionofCSR
Basic viewsContributingtothesustainabledevelopmentofsociety
BasicCSRpolicies
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Contents / Editorial policy Environment Next Generation Community Management Base
COLUMN
Asacorporatecitizenoftheglobalsociety,SMFGisfullyawareofthesocialimpactofthefinancialinstitution,anditshallsupportthefollowinginitiativesinJapanandoverseas(theactionguidelinesforthecorporateactivitiesandprinciples).
For400years,theSumitomoandMitsuiconglomerateshaveremainedtruetotheiroriginalbusinessspirit.Inthepast,theSumitomoGroupundertooklarge-scaleafforestationprogramstosolvetheproblemofpollutionaroundtheBesshicoppermine,theGroup’sstartingventureonShikokuIsland.Inordertoreturndevastatedmountainsidesaroundtheminecomplextotheirnaturalstate,theyinvitedexpertstocompileanafforestationplanwithannualplantingofoveronemillionsaplingsMeanwhile,theMitsuiGroupestablishedtheMitsuiCharityHospitalinTokyointheMeijiera(late1800s)toprovidebasicmedicalservicesforthosetoopoortobecoveredbythehealthinsurancesystem.Sincethen,theinstitutionhasevolvedoverthegenerationsintotoday’sMitsuiMemorialHospital.SMFGhascarriedthisDNAdowntothepresent.Webelievethatwehavefurtherrolestoplayinresolvingsocialissuesthroughourcorefinancialservicesbusiness.
TheGroupreferstothefollowingguidelinesinitspromotiondevelopment,andinformationdisclosureforCSR.
1.ISO260002.GRIGuidelines3.UnitedNationsGlobalCompact,COP(CommunicationonProgress),AdvancedLevelCriteria
4.ETHIBEL
1.UnitedNationsGlobalCompact2.UnitedNationsEnvironmentProgrammeFinanceInitiative (UNEPFI)3.CDP(CarbonDisclosureProject)4.EquatorPrinciples5.PrinciplesforFinancialActiontowardaSustainableSociety(PrinciplesforFinancialActionforthe21stCentury)
TheSMFGGroupbelievesthatCSRisthefoundationforSMFGGroup’sbusinessstrategieswhichshouldbeintegrallyincorporatedwithbusinessstrategiesforachievingthemanagementpoliciesandgoals.Inanotherwords,itistheconceptthatweconsistentlyverifyandconfirmaccordingtothebasicpolicyofCSRwhetherthedirectionofourbusinessstrategiespromotedbyourGroupcorrespondswithourvisionin10yearsof“becomingthehighlytrustedglobalfinancialgroupwhichleadsJapanandAsia,andgrowalongwithclients”;andthen,wereflecttheneedsofclientsandsocietyinourCSRactivities.WebelievethatfulfillmentofourCSRliesattheverycoreofourmanagementtask,andseriouslycommittingtotheimplementationofCSRwouldbetheshortestandquickestwaytoachieveourmanagementpoliciesandgoals.
For further details, please see the following websiteW Support for Initiatives in Japan and Overseas and
CSR Guidelines Used as References http://www.smfg.co.jp/english/responsibility/smfgcsr/structure.html
CSR: In our DNA for 400 years
BessicoppermineintheMeijieraandtoday
MitsuiCharityHospital(todays’MitsuiMemorialHospital)atitsestablishment
Integral development of CSR and business activities
Support for initiatives in Japan and overseas and CSR guidelines used as referencesGuidelinesusedforreferenceSupportforinitiativesinJapanandoverseas
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CSR at SMFG
TheEquatorPrinciplesareasetofguidelinesdevelopedbyprivatefinancialinstitutionsformanagingenvironmentalandsocialrisksrelatedtofinancinglarge-scaledevelopmentprojects.TheEquatorPrinciplesapplytoprojectfinancetransactions,project-relatedcorporateloansandbridgeloansthatareintendedtoberefinancedtoprojectfinanceorcorporateloans,regardlessofthecountryorthesector.TheEquatorPrinciplesarebasedontheenvironmentalandsocialpoliciesandguidelinesoftheInternationalFinanceCorporation(IFC),theprivatesectorarmoftheWorldBank.Thesepoliciesandguidelinescoveravarietyofissuessuchasenvironmentalandsocialimpactassessmentprocess,pollutionpreventionandabatement,considerationstolocalcommunitiesandnaturalresources.FinancialinstitutionsthatadopttheEquatorPrinciplesarerequiredtoestablishtheirowninternalenvironmentalandsocialguidelinesandproceduresinaccordancewiththeEquatorPrinciples,andtoconductenvironmentalandsocialriskassessments.AmongotherEquatorPrinciplesWorkingGroups,SMBCisamemberofthefollowingWorkingGroups;
“PrinciplesforFinancialActiontowardsaSustainableSociety,”whichwereadoptedinOctober2011,aresignedbySMBC,SMBCNikkoSecurities,SMBCFriendSecurities,MinatoBank,KansaiUrbanBankingCorporationandJapanNetBank.Theprincipleshavebeensetforthforthepurposesofmakingtheenvironmentalfinancingwidely-knownandimprovingthequalityofenvironmentalfinancing.SMBChasparticipatedsince2012asasteeringmemberfortheSteeringCommittee,whichismadeupof193financialinstitutions(asofMarch31,2015).Basedontheseprinciples,theGroupcontinuestoexpanditsenvironmentalfinancingactivitiesinJapan.
PerformanceinApplicationoftheEquatorPrinciplesCategory Number of projects
Category A*1 7Category B*2 43Category C*3 8
Total 58
By Region Number of projectsAsia & Oceania 14
Europe, Middle East, and Africa 16Americas 28
Total 58
Sector Number of projectsPower 24
Infrastructure 14Oil & Gas 14
Mining 2Other 4Total 58
*1Projectswithpotentialsignificantadverseenvironmentalandsocialrisk
*2Projectswithpotentiallimitedadverseenvironmentalandsocialrisks
*3Projectswithminimalornoadverseenvironmentalandsocialrisks
Actions on various principlesEquatorPrinciples
Signingofthe“PrinciplesforFinancialActions(theprinciplesforfinancialactionsforthe21stCentury)forAchievingtheSustainableSociety”
◦OutreachWorkingGroup,whichencouragesdevelopmentoftheEquatorPrinciplesinemergingcountries◦ExternalRelationshipWorkingGroup,whichbuildsrelationshipwithexternalparties◦ConsistencyWorkingGroup,whichworkstoimproveconsistencyintheEquatorPrinciplesimplementation
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WehaveestablishedtheGroupCSRCommittee,administeredbytheGroupCSRDepartment,toassesstheCSRimplementationplansofthewholeGroup,andmanageprogress.Specifically,departmentsareassignedresponsibilityforeachtarget,andtheGroupCSRDepartmentandassigneddepartmentsjointlyconductannualreviewsofprogressmadeintheseinitiatives.TheresultsofthesereviewsarereportedtotheGroupCSRCommittee.TheGroupCSRDepartmentandassigneddepartmentsalsoconductajointexaminationofplansforthefollowingfinancialyear,thefindingsofwhicharesubsequentlyassessedbytheGroupCSRCommittee.Inthisway,weusethePDCAcycleinourCSRinitiatives.Additionally,therearecaseswhereinitiativesarehandledbyindividualCSRcategory.Forexample,thecustomersatisfaction(CS)policiesofeachSMFGcompanyarepursuedjointly,andthesuccessfulmeasuresarerolledouthorizontallyacrosstheGrouporganization,withtheGroupCSCommitteeasthemainbodyengagedinimprovementofCSandquality.Inmeasurestoreduceenvironmentalimpact,theSMFGandsixprincipalSMFGcompanieshaveobtainedtheinternationalenvironmentalmanagementstandard
TheGroupenhancesCSRactivitiesafterincorporatinginputfromthirdpartyopinions,questionnairesandothersourcesinsideandoutsideSMFGaboutitsCSRreports.
SMBCorganizestrainingcoursestailoredtoemployeegrade,includingnewhiresandnewlyappointedmanagementemployees.Whensuchtrainingisgiven,CSRisincludedtoensurefullemployeefamiliarization.Infiscal2014,atotalof2,043employeestookpartinthesetrainingprograms.Inaddition,trainingandothersupportarealsogivenunderthefullrangeofCSRthemes,includinghumanrights,puttingthecustomerfirst,compliance,anti-moneylaundering,anddiversity.
CSRtrainingtailoredtoemployeegrades (Trainingrecipients)
Fiscal year
Training for new hires
Training for newly
appointed management employees
Training for newly
appointed branch
managers
Training for mid-career
hires on joining SMFG
Total
2011 709 407 126 0 1,242
2012 833 417 189 8 1,447
2013 1,151 349 170 6 1,676
2014 1,343 424 238 38 2,043
GroupwideCSR-relatedorganizations
Group CSR Committee Conductsconsultation,etc.onCSR-relatedmattersaffectingthewholeGroup.
Group CS Committee Conductsconsultation,etc.onprogressinimprovingcustomersatisfactiononaGroupwidebasis.
CSR Liaison CommitteeTheCSRLiaisonCommitteeexchangesinformationregardingprogressinCSRpromotionatindividualGroupcompanies,andcloselystudiesparticularlyprogressivemeasures.
SMFGCSRpromotionstructure CSRactivitiesandthePDCAcycle
For details regarding information on the Group’s CSR goals and performance, please refer to SMFG’s websiteW CSR Performance and Goals
http://www.smfg.co.jp/english/responsibility/smfgcsr/goal/W CSR Report 2015 Performance Data
http://www.smfg.co.jp/english/responsibility/report/pdf/2015/SMFG_csr15e14.pdf
For further details, please see the following websiteW Information on CSR Initiative Improvements
http://www.smfg.co.jp/english/responsibility/smfgcsr/opinion.html
ISO14001,andfollowtheproceduresofPlan,Do,Check,andAct(PDCA)cycleforsuchenvironmentalactivities.TofurtherstrengthenpromotionofCSRactivitiesacrosstheGroup,SMFGestablishedtheCSRLiaisonCommitteeinfiscal2010.ThisCommitteeregularlyengagesindiscussionandconsultationtoencourageGroup-wideimplementationofpoliciesandsuccessfulinitiativesofindividualGroupcompanies.
Group CSR Committee Our Mission
Basic CSR Policy(Business Ethics)
Board of Directors
Promoting CSR through core operations
Management CommitteeChairman:DirectorinchargeofSMFGCorporatePlanningDepartmentCommittee members: GeneralManagersofSMFG,SumitomoMitsuiBankingCorporation,SumitomoMitsuiFinanceandLeasing,SMBCNikkoSecurities,SMBCFriendSecurities,SumitomoMitsuiCard,Cedyna,SMBCConsumerFinance,TheJapanResearchInstitute,andTHEMINATOBANK,andKansaiUrbanBankingCorportaionAdministered by: GroupCSRDepartmentofSMFGStrategic advisor: JRICenterfortheStrategyofEmergence
CSR Liaison Committee The
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Customers PLANShareholders and the market DOThe environment and society CHECK
Employees ACT
CSR management
CSR training tailored to employee grades
Managementapproachfortargetachievement
ImprovementinCSRactivitiesincorporatingstakeholderinput
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For details regarding various activities, please refer to SMFG’s websiteW Communication with Customers (Customers)
http://www.smfg.co.jp/english/responsibility/cs/W Communication with Shareholders and Investors (Shareholders and the Market)
http://www.smfg.co.jp/english/responsibility/smfgcsr/disclosure/W IR Information (Shareholders and the Market)
http://www.smfg.co.jp/english/investor/
◦Customers:Weshalladvancetogetherwithourclientsbyprovidinghighlyvaluedproductsandservices.
◦Shareholdersandthemarket:Weshallstrivetomaintainasoundmanagementandmaximizeshareholdervaluebyhavingappropriatedisclosureofinformationandimprovingtheinternalcontrolsystem.
◦Theenvironmentandsociety:Weshallstrivetocontributetothesocietyandpreservetheearth’senvironmentbyconsistentlyandproactivelyinvolvingandparticipatinginthesocialandenvironmentalactivitiesandprograms.
◦Employees:Weshallpromotefree-spiritedandopen-mindedbusinesscultureunderwhichindividualemployeesarerespectedandallowedtoexerciseeachindividual’sfullpotential.
CSRvaluesforSMFG
PDCAcycleinabidtoaddressthreepriorityissues
For details, please refer to SMFG’s websiteW Dialogue with Stakeholders
http://www.smfg.co.jp/english/responsibility/ csrfinance/dialog_index.html
Drawingonthestrengthsofasolidmanagementstructure,SMFGstrivestofulfillitscorporatesocialresponsibilitieswiththeaimofactivelycontributingtothesustainabledevelopmentofsociety.Tothisend,SMFGworksdiligentlytoprovidegreatervaluetoitsfourmajorgroupsofstakeholders.
TheGrouphasreviewedthepreviously-raisedpriorityissuesaccordingtochangesinsocietythroughoutfiscal2014,andnewlyidentifiedthreesubjectmattersof“Environment,”
“NextGenerations”and“Community”asthemedium-tolong-termpriorityissues(Materiality).Infiscal2015,wewilltakefurtherstepstoidentifyissuesrequiringactionwithregardtoourpriorityissues,andincorporatethemintospecificresponses.
Contributing to the sustainable development of society
Stakeholder Engagement
Customers
Highly-valuedproducts
and services
CSR Group Initiatives
Solid management structure(corporate governance, internal controls, compliance,
risk management, information disclosure, etc.)
Shareholdersand the Market
SoundManagement
The Environmentand Society
Social andenvironmental
activities and programs
Employees
Corporate culture
respectingthe individuals
ApproachtodialoguewithstakeholdersCustomers〈Dialogue〉
Toll-freetelephoneservice,CSsurveys,
In-branchquestionnaires
The Environment and Society〈Dialogue〉
CooperationwithNGOsandNPOs,EnvironmentalBusinessForum
Shareholders and the Market〈Dialogue〉
Shareholders’Meetings,Smallmeetings,Annualreport
Employees〈Dialogue〉
Employeesurveys,Opinionexchangemeetingwith
topmanagement
SMFG
The SMFG Group’s contribution to the sustainable development of society through its stakeholders
Relationship with our four major groups of stakeholders
PDCA cycle in a bid to resolve priority issues
StakeholderEngagement
PLAN
DOACT
CHECK
Environment
CommunityNextGeneration
W Environmental Preservation Initiatives (The Environment and Society) http://www.smfg.co.jp/english/responsibility/environment/
W Social Contribution Activities (The Environment and Society) http://www.smfg.co.jp/english/responsibility/community/
W Human Resources (Employees) http://www.smfg.co.jp/english/responsibility/employee/
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Priority Issues (Materiality) that SMFG should addressWehavereviewedourpriorityissuesandderivedthreenewthemes—“Environment,”“NextGeneration,”and“Community”—asourmedium-tolong-termpriorityissuesthatformthecoreoftheSMFGGroup’sCSRactivities.Foreachthemes,wearealsofocusingon“wherewewanttobetenyearsfromnow”byclarifyingmattersandissuestobeaddressedandtakingactiononthem.
EnvironmentToward a sustainable world that all can share
Next Generation
Toward a vibrant society that balances maturity and growth
CommunityToward a healthy and distinctive community in which everyone can participate
Issues we should address◦ Promotion of environmental
management integrated with business
◦ Reducing environmental impact
◦ Managing environmental risks
◦ Promotion of environmental businesses
◦ Environment-related social contribution activities
Where we want to be ten years from now
A financial services group that
takes the lead in tackling
global environmental issues
Where we want to be ten years from now
A financial services group that helps create a society where the next generation
can also play an active part vigorously
Where we want to be ten years from now
A financial services group that contributes to the creation and
further development of safe communities, which are the bedrock
of Japanese society as a whole
Issues we should address◦ Support for next generation asset
inheritance and business succession
◦ Contributing as a financial institution to emerging countries
◦ Contribution to raising the level of financial literacy
◦ Global HR development
◦ Work-life balance and workplace with diversity
Issues we should address◦ Reconstruction for the Great East
Japan Earthquake
◦ Contribute to achieving and developing safe and secure communities
◦ Community-based activities led by officers and employees
◦ Efforts to solve social issues by collaborating with NGOs and NPOs
[Priority issues that SMFG should address]As a Financial Group, be a Bridge to the Future
Key issues to be addressed on a solid management base
Fair business practices and competition
Risk management
Corporate governance
Interaction with stakeholders
Severing any relations with anti-social forces
Rigorous information management
Pleasant workplace and work environmentCustomer satisfaction
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Priority Issues (Materiality) that SMFG should address
InlightofconstantlychangingsocialtrendsandareassessmentoftherelativeimportanceoftheGroup’spriorityissuesamongitsstakeholders,andinordertoadaptourCSRactivitiestothesedevelopments,infiscal2013wereviewedourpriorityissuesandhavederivedthreenewthemes—“Environment,”“NextGeneration,”and
“Community”—asourmedium-tolong-termpriorityissuesthatformthecoreoftheSMFGGroup’sCSRactivities.Inidentifyingthesepriorityissues,wemadeuseoftheG4sustainabilityreportingguidelinesissuedbytheGlobal
Identifying the issuesReportingInitiative(GRI),andwithparticipationfromallGroupcompanies,wederivedanorderofpriorityforvarioussocialissues.Wealsoengagedindialogwithanumberofexpertstoassesstherelativeimportanceassignedbyourstakeholderstothevariousissues.Theninfiscal2014,throughengagementwithstakeholdersinandoutsidetheGroup,weworkedtostrengthenourreviewofpriorityissuesandassociatedinitiatives.
Wederivedaround150wide-rangingCSRissuesfromtheGRIGuidelines(G4)andISO26000throughthediscussionswithourGroupcompanies.Wethenassignedanorderofprioritytotheseissuesfromthestandpointofourstakeholders.Theywerefirstplacedintotwocategories—“ourmedium-tolongtermpriorityissues(environment,nextgeneration,andcommunity),”and“keyissuestobeaddressedonsolidmanagementstructure.”
InFebruary2014,weconductedadialogwithselectedgroupofexpertsonour“issuesthoughtlikelytobeimportantoverthemedium-to-longterm,”and“issuesthatmustbeeffectivelyaddressedinordertoconstructasolidmanagementsystem”tocheck,fromtheperspectiveofsocialnature,environmentandglobalissueswhethersufficientconsiderationandrecognitionhadbeengiventoalltheissuesthatshouldbeputforwardascandidatepriorityissues,andtoensurethatnoimportantissueshadslippedthroughthenet.Aftercarryingoutstep2,weconductedrevisioninlinewiththeopinionsexpressed,andidentifiedthepriorityissuestobeaddressedbySMFGafterreceivingtheapprovaloftheexperts.
FromJuly2014wehavecollectedopinionsfrominandoutsideourGroupthroughemployeesurveysheldduringinternaltrainingandexternalsurveysinourCSRreport,whichcontainsthepriorityissues(Materiality)thatSMFGshouldaddress.InMay2015,weheldadialogwithanumberofexpertstofurtherclarifymorespecificmattersandissuesthatSMFGshouldaddressintheareasof“medium-tolong-termpriorityissues(environment,nextgeneration,andcommunity)”and“keyissuestobeaddressedonasolidmanagementbase.”
InMarch2014,theGroup’sManagementCommitteegaveapprovalforthepriorityissues(Materiality)thatSMGFshouldaddressthroughtheGroupCSRCommitteeandtheCSRLiaisonCommittee.Moreover,approvalwasreceivedfortheexaminationofspecificmethodsofaddressingpriorityissuesafterdiscussionandreviewwithstakeholdersbothwithinandoutsidetheGroupandeachGroupcompany.
Standards used for reference in prioritization
Importance to Stakeholders◦Internationalframeworks
suchastheGRIGuidelines◦Itemstoberesearchedor
pointedbytheSociallyResponsibleInvesting(SRI)-relatedinstitutions
◦SuggestionsfromthestrategyadvisortotheSMFGGroupCSRCommittee
Importance to SMFG◦Priorityissuesfrom10
Groupcompanies◦ConformitywithSMFG’s
BusinessMission,businessethics,andmedium-termmanagementplan
◦Assessmentofrisksandpossiblebusinessopportunities(potentialforenhancingenterprisevalue)inlinewithpursuitofsustainability
Step1Selectionandprioritizationofissues
Step2Reexaminationandidentificationthroughdialogwithexperts
Step4Reviewthroughengagement
Step3ReportingtoGrouptopmanagement,andreceivingapproval
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InJuly-August2014,weconductedasurveyofCSRpromotingpersonnelinalldomesticbranchestoascertaintheawarenessandimportanceofCSRamongemployees.ThesurveyaskedemployeeswhichofthemainCSRactivitiestheyconsideredimportanttoSMFG.Intheresults,17%ofthemindicatedenvironmentalimpactreductionsuchasmeasurestopreventglobalwarmingandmakeeffectiveuseofresources;next,15%indicatedsolvingenvironmentalandsocialissuesthroughenvironmentallyconsideratefinancingandsoforth,and11%indicatedcontributiontotherealizationofasafeandsecuresocietythatwillformasocialinfrastructure.
Togetto“wherewewanttobetenyearsfromnow”intermsofthepriorityissuesof“environment”“nextgeneration”and“community”thatwereidentifiedinfiscal2013,weclarifiedthemattersandissuesthatSMFGshouldaddresstodriveaPDCAcyclefordeterminingmoreconcreteaction.Inclarifyingthesemattersandissues,welookednotonlyattheCSRissuesthatareconsideredimportantbyGroupcompanies,butalsoatthose*thatmattertoourstakeholders.Furthermore,weheldadialogwithanumberofexpertstocheckwhethersufficientconsiderationandrecognitionhasbeengiventothemattersandissuesthatSMFGshouldaddressandensurethatnonehaveslippedthroughthenet.Moreover,tocomplywiththeGRIG4Guidelines,wecreatedanassociationbetweenthemattersandissuestobeaddressedandthespecifiedstandarddisclosureitems,andheldadiscussionaboutboundaries.
*Regardingpriorityissuesforstakeholders,werefertotheissueslistedintheSustainabilityAccountingStandardsBoard’s
“DisclosureTopicsforFinancialsSector”andtheissuesforthefinancialsectorsummarizedintheNipponCSRConsortiumheldbyCauxRoundTableJapan.
Fiscal 2014 initiatives
Lookingattheresultsbythethreepriorityissues(Materiality),40.1%ofissuesarerelatedto“environment,”28.5%arerelatedto“nextgeneration,”and22.4%arerelatedto“community.”Thismadeusclearlyrealizetheimportanceofthepriorityissueof“environment.”Furthermore,manyemployeescalledforfullerdisseminationofCSRinformationinandoutsidetheGroup.WethereforediscoveredthatthereisaneedtocomeupwithwaystobolsterrecognitionofourCSRactivities.WewillcontinuetolistentoopinionsfrominandoutsidetheGroupaswetakestepstoenhancetheGroup’sCSRactivities.
Employeesurvey
ClarifyingmattersandissuesthatSMFGshouldaddressinordertogetto“wherewewanttobetenyearsfromnow”
Dialogwithexperts
Experts who attended the dialog Selection of opinions◦IthinkSMFGshouldplaceevenmoreemphasisonusingitsfinancialfunctionsto
providesolutionsforsocialproblems.◦ThereisacallfortheGrouptoexpanditsinitiativesonhumanrights◦Thetarget“Community”shouldtakeintoaccountnotonlydomesticandoverseas,
butalsoinvestees’perspectives.◦Employeesrequireeducationandawareness-raisinginordertomakeanimpact
withtheirdailyworkoperations,includingontheindividualhumanrightsofinvesteesandontheenvironment.
◦Theriskperspectiveisimportantfortheenvironmentbusinessandotheroverseasbusinessdevelopment.SMFGshouldprovidemoredisclosureoninitiativessuchastheEquatorPrinciplesandtheGlobalCompact.
◦SMFGneedstoconsidercomingupwithbusinessideasthatoriginatefromsocialissuesbasedontheconceptofworking“incollaboration”withNGOsandNPOsratherthanmerely“supporting”them.
One AkiyamaPresidentIntegrexInc.
Kaori KurodaExecutiveDirectorCSONetworkJapan
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BasedontheinternationalenvironmentalmanagementcertificationISO14001,wearepromotingGroup-wideenvironmentalactivitiesthroughaPDCAcycle.
Wearehelpingtopreparefortheneedsofanagedsocietybyprovidingfinancialservicestoassisttheprovisionofhousingandfacilitiesforelderlypeopleaswellasmedicalandotherfacilities.
InareasaffectedbytheGreatEastJapanEarthquake,weareconductingaraftofvolunteeractivitiestailoredtoeachrecoverystagetoassisttherecoveryindustry,communities,people,andthenaturalenvironment.
Throughinitiativessuchastheintroductionofuniversaldesignanduniversalserviceandtrainingofsupportersforclientssufferingfromcognitiveimpairment,weareworkingtocreateanenvironmentthatallourclientscanusesafelyandsecurely.
WearetakingactiononsocialissuesinemergingcountriesandotherareastohelpachieveourgoalofbecomingatrulyAsia-centricinstitution,whichispartofourvisionforthenextdecade.
WehavesetGroup-widetargetsforreducingourenvironmentalimpactandwearenowworkingbothtosaveenergybyimprovingtheenvironmentalperformanceofourfacilitiesandalsotoreducewaste.
Promotionofenvironmentalmanagementintegratedwithbusiness
Supportfornextgenerationassetinheritanceandbusinesssuccession
ReconstructionfortheGreatEastJapanEarthquake
Contributetoachievinganddevelopingsafeandsecurecommunities
Contributingasafinancialinstitutiontoemergingcountries
Reducingenvironmentalimpact
Environment
NextGeneration
Community
▼ P.16
▼ P.23
▼ P.28
▼ P.29
▼ P.24
▼ P.17
Toward a sustainable world that all can share
Toward a vibrant society that balances maturity and growth
Toward a healthy and distinctive community in which everyone can participate
Report about three priority issues
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EmployeesinJapanandoverseasleadeffortstoparticipateinlocaleventsandvolunteeractivities,operatingalunchdonationprogramandotherinitiativescloselytiedtolocalcommunities.
Throughinitiativessuchastheintroductionofuniversaldesignanduniversalserviceandtrainingofsupportersforclientssufferingfromcognitiveimpairment,weareworkingtocreateanenvironmentthatallourclientscanusesafelyandsecurely.
OurGroupcompaniesconductlessonvisits,seminars,andotheractivitiestopromotethespreadofessentialfinancialknowledgetoallgenerationsfromelementaryschoolstudents,toworking-ageadultsandseniors.
ThroughscholarshipprogramssetupbyfoundationsinJapanandoverseas,andalsobyoverseasbusinessoffices,weareprovidingsupportforthenext-generationofstudentsallovertheworld.
Hereweintroduceourfinancialservicesforsupportingcompaniesthatpromotewomen’sadvancementintheworkplaceandourowninitiativesforpromotingagoodwork-lifebalance.
Westrivetoensureanappropriateenvironmentalandsocialriskassessmentframework,includingfactoringenvironmentalrisksintocreditassessments,whileraisingemployees’awareness.
Weworktoprovidefinancialservicesdesignedtohelppromoterenewableenergyandreduceenvironmentalimpact,suchasSMBCEnvironmentalAssessmentLoans.
Weconductenvironmentalpreservationactivities,suchasclean-upeventsbyGroupcompanyemployees,andinitiativestopromoteenvironmentalliteracy.
Community-basedactivitiesledbyofficersandemployees
EffortstosolvesocialissuesbycollaboratingwithNGOsandNPOs
Contributiontoraisingtheleveloffinancialliteracy GlobalHRdevelopment Work-lifebalanceand
workplacewithdiversity
Managingenvironmentalrisks
Promotionofenvironmentalbusinesses
Environment-relatedsocialcontributionactivities
Fromthemedium-tolong-termissuesthatformthecoreoftheSMFGGroup’sCSRactivities,wehavederivedthreenewthemes—Environment,NextGeneration,andCommunity.FromhereonwardweplantoreportonthesignificantinitiativestakenbytheGroup’smembercompaniesinlinewiththesethreethemes.
Environment
Next Generation
Community
Measurestoaddressthreepriorityissues
▼ P.30
▼ P.30
▼ P.25
▼ P.26
▼ P.26
▼ P.18
▼ P.18
▼ P.21
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Many issues have emerged in the world today, from climate change and biodiversity loss to resource depletion and food shortages caused by population increases. The Intergovernmental Panel on Climate Change holds that resilient societies are formed and sustainable development is promoted when effective measures to address and ameliorate these problems are promoted through reforms to political, social, economic, and technical systems. In the financial services industry, environmental risk assessments must be conducted on financing and investment targets, and emphasis is placed on environmental education for the employees that promote these assessments.
The SMFG Group seeks to reduce the environmental impact of its business activities and contribute to global environmental protection from an economic standpoint by leveraging its financial functions. Our focus with respect to customer environmental measures is on four areas, the environment, renewable energy, water, and natural resources, and by providing financial services along with consulting on carbon credit utilization and environmental management, our aim is to help create more sustainable societies while generating business opportunities.
Environmental management at the SMFG Group is based on the Group Environmental Policy and ISO 14001. In financial services, we promote business activities based on the guidelines and principles of initiatives such as the UN Global Compact and Equator Principles.
Toward a sustainable world that all can share
Recognition of Social Issues
SMFG’s Approach
SMFG’s Management
W The Group Environmental Policy / Environmental Management System based on ISO14001 certification http://www.smfg.co.jp/english/responsibility/environment/
W Performance Data and Goals of the Six Principal SMFG Companies http://www.smfg.co.jp/english/responsibility/environment/achievement/
W CSR Activity Performance and Goals of SMFG Companies http://www.smfg.co.jp/english/responsibility/smfgcsr/goal/group.html
Environment
In order to promote these activities effectively, we have identified the following five key issues. ◦ Promotion of environmental management integrated with
business◦ Reducing environmental impact◦ Managing environmental risks◦ Promotion of environmental businesses◦ Environment-related social contribution activities
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EnvironmentalinitiativesEnvironmentalManagementSystem(EMS)BasedonISO14001Certification
Promotion of environmental management integrated with business
Thethreepillarsofourenvironmentalactionplanare:1)“Reductionofimpactsonenvironment,”2)“Managementofenvironmentalrisks,”and3)“Promotionofenvironmentalbusinesses.”WehavesetenvironmentalobjectivesforeachenvironmentalactivityandfollowtheproceduresofPlan,Do,Check,andAct(PDCA)forsuchenvironmentalactivities.
TheenvironmentalmanagementcertificationofISO14001hasbeenobtainedbySMFGanditsmajorcompanies(SMBC,SumitomoMitsuiFinanceandLeasing(“SMFL,”)SMBCNikkoSecurities,SMBCFriendSecurities,SumitomoMitsuiCardandJRI).In1998,SMBCwasthefirstbankinJapantoobtainthiscertification.TheGrouphasdevelopedthestructuretopromoteEMS,whichisorganizedandmanagedmainlybytheCorporatePlanningDepartmentandseniorenvironmentalofficers.CedynaandSMBCConsumerFinancealsoplantoobtaincertificationinfiscal2015,soalleightoftheGroup’sprincipalcompanieswillbecertified.
facilitiestodramaticallyimprovetheirenvironmentalperformanceandpromotingenergysaving.SMFGGroupcompanyemployeesalsoengagedinenvironmentalpreservationactivitiessuchascleanupinitiativesandtheGroupworkedtoimprovetheirenvironmentalliteracythroughcollaborationwithorganizations.
Infiscal2014,SMBCworkedtooffercustomersfinancialservicesthathelpthemtoreducetheirenvironmentalimpact,suchastheSMBCEnvironmentalAssessmentLoad/PrivatePlacementBond,theSMBCSolarLoan,andhandlingofJapan’sfirstmobilehydrogenstationlease.Thebankalsotookstepstoreduceitsownimpactontheenvironment,suchasrebuildingandimprovingbank
Overview of fiscal 2014 activities and issues
EnvironmentalActionPlanandPDCAProcedures
The Group Environmental Policy
Implementation of environmental initiatives
Reduce environmental implications
Manage environmental risks
Promote environmental businesses
ISO14001assessmentunderwayPLAN
DOACT
CHECK
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Contributingtorecycling-basedsocietythroughreuseandrecyclingofmachineryandequipment
Initiativesforenergyconsumptionoffacilities Solarpanelsinstalledoncomputercenters
Reducing environmental impact
SMFLleasesawiderangeofmachineryandequipmenttoitscustomerswhilealsoassumingresponsibilityfortheequipment’slifecycleupthroughreuseandrecycle.Forequipmentthatisreturnedwhenitsleaseagreementends,thecompanypromotesitsreuseasusedequipment.Equipmentthatcannotbereusedisrecycledintometalandothermaterialsinordertoreducewastetothemaximumextentpossibleandenvironmentalimpact.Ontheotherhand,whenapieceofequipmentisnotsuitableforreuse,itiscarefullyprocessedinaccordancewithapplicablelawsandregulations.Inaddition,whenwasteisdischarged,thecompanyensuresappropriateprocessingthroughutilizationoftheelectronicmanifestsystemwhilealsofocusingonprogressmanagementandadministrativeefficiency.SMFLwillcontinuetodoitspartincreatingarecycling-basedsocietybyfurtherpromotingthereuseandrecyclingofmachineryandequipment.
SMFGsetsenvironmentalobjectivesforreducingenergyconsumptionsuchaselectricityforeachfiscalyear,anditstrivestoimplementenergy-savingmeasurestoreachthetargetedgoal.FortheSMBCEastTower,whichwascompletedinthesummerof2015,wehavetakenintoconsiderationtheenvironmentalawarenessonthefollowingissues:1)utilizationandpreservationofnature;2)implementationofhighlyefficientsystems;3)reductionofadverseenvironmentaleffects;and4)creationofasustainablebuilding.Weareexpectedtoincorporatediverseenergy-savingtechnologiestoreduceapproximately35%ofCO2emission*.AstheOsakaHeadOfficebuildingwasbuiltover80yearsago,thetwo-yearrenovationofthebuildingwascompletedinMay2015.Fortherenovation,wehaveinstalledhighperformingexteriorwallframes,LEDlightingsandsolarpanelswhileretainingtheoriginalcharmofthehistoricalstructure,bysubstantiallyimprovingtheenvironmentalperformanceinadditiontoappropriatelyadaptingtomodernworkstyles.
SumitomoMitsuiFinancialGroup,SumitomoMitsuiBankingCorporationandTheJapanResearchInstitutehaveinstalledsolarpowergenerationequipmentontherooftopsoftheirmaincomputercenterandhavealsoconductedenergyconservationmeasuresasapartoftheirenvironmentalinitiatives.Storagebatterieshavealsobeeninstalledforpowersupplystabilityattimesofpeakpowerconsumptionduringthedayregardlessoftheweather.
*Comparedtoanaverageofficebuildings
SMBCEastTowerExhibitionplaceofthere-machinesalesdivision
InsidetheexhibitionplaceOsakaHeadOfficewithrenovationscompleted
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Environmentalriskassessment
Raisingenvironmentalawareness
Managing environmental risks
SMBCbelievesitisimportanttotakeintoaccounttheenvironmentalrisksforconductingcreditassessment.Factoringenvironmentalrisksinthecreditassessment(environmentalcreditrisks)isstipulatedinSMBC’sCreditPolicy,whichsetsforththeuniversalandbasicphilosophies,guidelinesandrulesforcreditoperations.Thepolicyalsodeclaresthatthebankwillnotexecuteloanstocompaniesandbusinessesthathaveanadverseenvironmentalimpact.
AtSMBC,theEADsendsoutitsmonthlyEADNewslettertootherdepartmentsandemployeeswithinthebank,sharingnewsrelatedtotheenvironmentfromaroundtheglobeaswellasarticlesonspecificprojectsinordertofurtherraiseenvironmentalawarenessamongemployees.
Environmentalsocialriskassessmentflowchart
Clients
Lending Branches
Credit DepartmentsEnvironm
ent Analysis Departm
ent
SMBChasadoptedtheEquatorPrinciples,asetofprinciplesfordetermining,assessingandmanagingenvironmentalandsocialrisksinprojectfinancingandhasestablishedtheEnvironmentAnalysisDepartment(EAD)toassesstheenvironmentalandsocialrisksoflarge-scaledevelopmentprojectsinaccordancewiththeprinciples.InOctober2013,followingthethirdrevisionoftheEquatorPrinciples,SMBCalsoreviseditsinternalprocedurestoimproveitssystemforassessingenvironmentalandsocialrisks.Furthermore,SMBCcontinuestoimproveitsenvironmentalandsocialriskassessmentsystemswhichreceivedathird-partyguaranteemadebyErnst&YoungSustainabilityCo.,Ltd.withrespecttoapplicationstatusoftheEquatorPrinciples.
Addressingenvironmentalissuesthroughfinancing
Promotion of environmental businesses
AtSMBC,wearedevelopingfinancialsolutionstosupporttoworkofawiderangeofcustomersengagedintacklingvarioussocialissuessuchasofenvironmentalproblemsforresourceandenergyconservationor,globalwarming;countermeasuresfornaturaldisasters;orensuringfoodsafety.In2006webeganofferingtheSMBC-ECOLoan,aformoffinancingforsmallandmedium-sizedenterprisesthathaveacquiredthecertificationforenvironmentmanagementsystem.SoonafterthistheJapanResearchInstitute,Limitedbeganassigningratingstotheenvironmentaleffortsofourcorporatecustomers,allowingSMBCtooffertheSMBCEnvironmentalAssessmentLoansandPrivatePlacementBonds,inwhichtheloantermsdependoneachcustomer’srating.
Variousassessment-typeloans
Fiscal 2008
SMBCEnvironmentalAssessmentLoan/PrivatePlacementBond Assessingandsupportingthe
environmentalactivitiesofcompaniesandthecorporatesectorFiscal
2010SMBCEnvironmentalAssessmentLoan/PrivatePlacementBond,ecoValue-Up
Fiscal 2011
SMBCFoodandAgricultureAssessmentLoan/PrivatePlacementBond
Assessingandsupportingmeasuresaimedatpromotingfoodsafetyandsecurityaswellasafoodculture
SMBCSustainableBuildingAssessmentLoan/PrivatePlacementBond
Assessingandsupportingtheenvironmentalandaseismicperformanceofbuildings
SMBCBusinessSustainabilityAssessmentLoan/PrivatePlacementBond
Assessingandsupportingclients’effortstoensurebusinesscontinuityintheeventofemergenciessuchasearthquakesorfloods
Fiscal 2013
SMBCSustainabilityAssessmentLoan/PrivatePlacementBond
AssessingandsupportingESGactivitiesaswellastheappropriatenessofinformationdisclosure
Subsequently,wederivedfromvarioussimilarassessment-linkedfinancingproductsaimedatassistingclientcompaniesattemptingtoaddresssocialissues.InMarch2014thetotalvalueofsuchassessment-linkedloanssurpassed¥1trillion.SMBChasalsobeenexpandingitsservicesinthisfieldoverseas.InDecember2012itbeganofferingthe“SMBCEnvironmentalAssessmentLoansandPrivatePlacementBonds:MalaysianVersion”tosupportcompanies’environmental-consciousactivitiesinMalaysia,andinNovember2013itsimilarlylaunchedthe“SMBCEnvironmentalAssessmentLoansandPrivatePlacementBonds:ThailandVersion”tosupportcompanies’environmental-consciousactivitiesinThailand.Fromhereonward,wewillcontinuetosupportthefurtherexpansionofourcustomers’activitiesonaglobalscalethroughthedevelopmentofsimilarsolutions.
AppearanceintheNihonKeizaiShimbun’sMorningEditiononDecember10,2014
ProjectInformation Screening
EnvironmentalMonitoring
EnvironmentalandSocialRiskAssessment
CovenantsComplianceEnvironmentalMonitoring
EnvironmentalReview
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Japan’sfirstmobilehydrogenstationleaseinitiative
UtilizingJointCreditingMechanism
InvolvementinEuropeanrenewableenergyprojects
SMBCSolarLoan
SMFLwillbeginleasingatotaloffivemobilehydrogenstationstoNipponMobileHydrogenStationServices,ajointventureestablishedthroughinvestmentbyToyotaTsusho,Iwatani,andTaiyoNipponSanso.ThecompanywillleaseJapan’sfirstcommercial-usemobilehydrogenstations.ThiswillbethefirsttimeinJapanthatmobilehydrogenstationswillbeplacedunderaleaseagreement.Withhydrogenmakingmajorstridesasaviablerenewableenergy,fuelcellvehiclesusinghydrogenenergyarealreadyonthemarket,andhydrogenstationsarealsoexpectedtobeincreasinglyestablishedonawidespreadbasis.SumitomoMitsuiFinanceandLeasingwillcontinueitsengagementinthehydrogen-relatedbusinesstohelprealizeanenvironmentalsocietythroughitsleasingoperations.
SMBCprovidesfinancialsupporttodevelopenvironmentallyfriendlyprojectswhile promotingenergyefficientJapanesetechnologyabroadbyutilizinggovernmentschemessuchasJointCreditingMechanism(JCM),whichaimstoreducegreenhousegasemission.Sincefiscalyear2010,SMBChasconductedvariousfeasibilitystudiesandprovidedfinancingschemesforover20projects,mainlyinAsiaandLatinAmerica.Infiscalyear2014,SMBCparticipatedinafeasibilitystudyonthereductionofCO2emissionsbyreplacingthemercuryprocesswithanionexchangemembraneprocessintheelectrolysisofbrinetomanufacturecausticsodainLatinAmerica.Theionexchangemembraneprocessislesscarbonintensiveandmoreenergyefficientthantheconventionalmercuryprocess.TheMinamataConventiononMercurywasadoptedinOctober2013(theconventionwillenterintoforce90daysafter50countriesratifyit),andtheuseofmercuryinproducingcausticsodaandchlorinemanufacturingprocessisexpectedtobebannedby2025.Duetothistrend,implementationofionexchangemembraneprocessishighlyanticipated.ByutilizingtheJCMscheme,SMBCwillcontinuetosupportenvironmentallyfriendlyprojectsbyintroducingJapaneseenergyefficienttechnologiesandtakeonenvironmentalproblemssuchasclimatechangeandreductionofmercury,therebycontributingtoamoresustainableworld.
Formanyyearsnow,SMBChasbeeninvolvedinstructuringprojectfinanceloansforawiderangeofrenewableenergyprojects,includingwindpowerandwaste-to-energypowergeneration.Europeisattheforefrontofintroducingrenewableenergysupplies.BetweenApril2014andJune2015,SMBCarrangedfinancingforfiveprojectsintheUnitedKingdom(oneonshorewindfarmproject,twooffshoretransmissionprojects,andtwowaste-to-energyprojects),andthreeoffshorewindfarmprojectsinGermany,andoneoffshorewindfarmprojectintheNetherlands.The“Gemini”offshorewindfarmprojectintheNetherlandswilluse150windturbinestosupplycleanelectricitytoapproximately785,000Dutchhouseholds(totaloutputof600MW).SMBCactedasMandatedLeadArrangerforthefinancingoftheproject.TheprojectwasawardedtheDealoftheYearfor2014byindustry-leadingmagazine,Project Finance International.
Utilizingitsfinancingexpertiseinthesolarpowerbusiness,SMBChasbegunofferingtheSMBCSolarLoan,astandardloanproductforsolarpowerprojectsoflessthan2,000kilowatts,inordertomorepromptlyandswiftlyaccommodatethewide-rangingfinancingneedsofcustomerswhoareplanningpowerprojects.TheproductsmoothesthefinancingprocessforprojectsthatreduceCO2emissionsthrougharoutinecheckofprojectfeasibility.SMBCintendstocontinueprovidingproductsthatsupportcustomerstakingonrenewableenergyprojects.
MobileHydrogenstation
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Sociallycontributingcreditcard:The“ChikyuniYasashiiCard”
ExhibitionatEco-Products2014
MerchantSalesWebAccountStatementService’stree-plantingcampaign
Cedynaissuesasociallycontributingcreditcardcalledthe“ChikyuniYasashiiCard”tosupportglobalenvironmentalpreservationefforts.Cardholderssimplyusethecardforeverydayshoppingordining,forexample,andaportionoftheamountspentisdonatedbyCedynatoorganizationsinvolvedinglobalenvironmentalpreservationatnocosttothecardholder.Thecardhasbeenissuedsince1991,anddonationsinfiscal2014totaledapproximately¥20.0million.Cumulatively,approximately¥680.0millionhasbeendonated.
ForthreedaysstartingonDecember11,2014,oneofJapan’slargestenvironmentalexhibitions,Eco-Products2014,washeldatTokyoBigSight.Theeventdrawsaround170,000visitorseachyear.SMFGexhibitedathemezonecalled“EnvironmentalBusinessForum.ThisyearwasSMFG’sseventhpresentingaboothattheexhibition.TheboothdisplayedGroupcompaniessuchasSMBC,aswellas15oftheGroup’sbusinesspartners.Inadditiontointroducingvariousinitiativesrelatedtotheenvironmentandfinance,SMFGalsoheldaquizrallyrelatingtoeachcompaniesexhibitioncontentandbroadcastcommercials.TheSMFGboothwastheonlyexhibitionbyamegabank,andwasvisitedbyapproximately4,000visitors—thelargestnumberyet.
SumitomoMitsuiCardconductedacampaignfromDecember15,2014toFebruary28,2015involvingplantingtreesdependentonthenumberofregistrationsrecordedforthe“MerchantSalesWebAccountStatementService,”tolendsupporttotherecoveryfromtheGreatEastJapanEarthquakeandasapartofitsenvironmentalactivities.SMFGplantsatreeforeverythreememberstoresregisteringtochangeovertothe“MerchantSalesWebAccountStatementService.”Atotalof78treeswereplantedinthemunicipalityofMiyakoinIwatePrefecturethroughatreeplantingprojectnamed“PresentTree.”Miyako’sfishingindustryoftheSanrikucoastwasseverelydamagedbytheGreatEastJapanEarthquake.Whenthetreesplantedforthecampaigngrowandmaturetheywillformafish-breedingforestcapableofsupportingtherichmarineresourcesoftheareaandhelpthecity’sfishingindustryrecover.
SMFGboothinEco-Products2014
Cedyna’s“ChikyuniYasashiiCard”
CertificationofplantingfromtheNPO
Iconof“PresentTreeinMiyako”
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Participationinenvironmentalpreservationinitiatives
Co-sponsorshipof“EARTHPHOTOCONTEST”2015
Promotingenvironmentalliteracy
Environment-related social contribution activities
SMFGorganized“SMFGClean-UpDay,”infiscal2014.Approximately1,100employeesandtheirfamilymembersvolunteeredtocleanupfourlocationsofTamagawainTokyo,theYodogawainOsaka,SumaBeachinHyogoandFujimae-HigatanearNagoya.Inaddition,KansaiUrbanBankingCorporationparticipatedintheclean-upactivitiesalongtheshoreofLakeBiwainShigaPrefecture,andJRIheldthe“OsakaMarathonClean-Up”eventconcurrentlywiththeOsakaMarathon.Sincefallof2010,SMBCNikkoSecuritiesdesignateda
“GreenWeek”astheweekforenhancementofenvironmentalpreservationandsocialcontribution.Infiscal2014,thecumulativetotalof5,265employeesandtheirfamilymembersparticipatedinthecleanupactivitiesandthecollectionofplasticbottlecaps.Similarly,CedynaSMFL,andSMBCConsumerFinancecontinuouslyconductclean-upactivitiesinthevicinityoftheiroffices.
SMFLhelpssponsortheEARTHPHOTOCONTESTsponsoredbyPresidentInc.andbackedbytheMinistryoftheEnvironment.Forthecontest,environmentalthemeswerechosenbySMFLandtheother11co-sponsors,andphotosappropriateforeachthemeweresolicitedfromthegeneralpublic,withprizesawardedinthenameofeachofthecompanies.Thislong-runningcontesthasbeenheld21times,andthiswastheseventhconsecutiveyearthatSMFLhashelpedsponsorit.ThethemechosenbySMFLwas“BridgesConnectingPeople,LivingOrganisms,andNature,”reflectingtheimportanceoftherelationshipsbetweenpeopleandtheearth’senvironment,whichistherelationshipthatpeoplesharewithplants,animalsandallofnature.TheSumitomoMitsuiFinanceandLeasingPrizewasawardedinJanuary2015tooneofthe642entriesreceived.
Theaward-winningphotoshowsthejoyofpeoplefromthesamesmallcommunityspendingtimetogetheronabridgeoverariver,evokingtheimportanceofrelationshipsbetweenpeopleandbetweenpeopleandtherichnaturalenvironment.
KansaiUrbanBankingCorporationholdsahands-onenvironmentallearningexperienceforchildrenaccompaniedbyparentsonthethemeofLakeBiwa(Japan’slargestlakeandknownas“MotherLakeBiwa”intheKansairegion).Infiscal2014,39parentsandchildrenparticipatingfromShigaPrefectureandotherareasboardedaspeciallycharteredvesselandconductedwater-qualitysurveysandplanktonobservationonLakeBiwabeforetakingatouroftheLakeBiwaMuseum.
Sumabeachcleanupday
Tamagawarivercleanupday
TheLakeBiwahands-onenvironmentallearningexperiencesession
SMFLAwardTitle:“WhileListeningtotheSoundofaMountainStream”Photographer:EtsukoTakemura
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Contents / Editorial policy Management Environment Community Management Base
Many issues remain that must be resolved to create a vibrant and sustainable society. In developed countries, these include personnel and successor shortages and economic stagnation caused by low birthrates and aging populations, while emerging countries are facing the widening gap between rich and poor in connection with rapid economic development and urbanization, among other issues. In the financial services field, we are being called upon to promote capacity building and financial inclusion through business activities and conduct social risk assessments that include human rights considerations in connection with financing and investing projects.
Through maximum utilization of its financial functions, the SMFG Group will promote the fostering of industries and human resources for the next generation, improved financial literacy, and market development for sound economic growth in emerging countries. At the same time, the Group seeks to bring about a next-generation society in which everyone inside and outside the organization has a chance to succeed, establishing true diversity as the social norm, in
In financial services, we promote business activities based on guidelines and principles including the UN Global Compact and Equator Principles initiatives. To improve financial literacy, we are promoting initiatives to increase executive and employee participants in financial and economics education programs.
Recognition of Social Issues
SMFG’s Approach
SMFG’s Management
W CSR Activity Performance and Goals of SMFG Companies http://www.smfg.co.jp/english/responsibility/smfgcsr/goal/group.html
which there is no discrimination on the grounds of gender or nationality,. In order to effectively promote these activities we have identified the following five issues that SMFG should address. ◦ Support for next generation asset inheritance and business
succession◦ Contributing as a financial institution to emerging countries ◦ Contribution to raising the level of financial literacy◦ Global HR development ◦ Work-life balance and workplace with diversity
Toward a vibrant society that balances maturity and growth
NextGeneration
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Contents / Editorial policy Management Environment Community Management Base
Nursing and Medical Care
◦Specializationandnetworksinnursingandmedicalcareindustry◦Extensiveexperienceoperatinghealthcarefacilities:66facilities
nationwide;4,254employees(asofSeptember30,2014)◦Broadbusinessdevelopmentbasedonpartnershipswith
medicalinstitutions◦Dispatchofpersonnelwithexpertknowledgeofnursingand
medicalcareindustry
Fund Management
◦GeneralfinancialservicescompanyoftheNECGroup◦Developmentofinvestmentandfinancingthroughfunds,etc.
andadvisoryservicescenteringonsubsidiaryRISAPartners,Inc.◦Provisionofexpertiserelatedtofundadministrationandsupport
relatedtotemporaryownershipofpropertiesthroughfunds
Financial
◦Top-classdomestictrackrecordoffinancingforJ-REITs◦J-REITcreditbalanceofapprox.¥789.2billion(asofSeptember
30,2014)◦Broadcustomerbaseasafinancialinstitutionwithapositionas
oneofJapan’smegabanks◦Finance-relatedadviceandreferralsofcustomerswithneeds
relatedtohealthcarefacilitysecuritization
HealthcareREIT
Support for next generation asset inheritance and business succession
InMarch2015,Healthcare&MedicalInvestmentCorporation(HCM),whichwasestablishedbythreemainsponsorcompanies,SMBC,ShipHealthcareHoldingsCo.,Ltd.andNECCapitalSolutionsLimited,waslistedontheFirstSectionoftheTokyoStockExchange.Thisinitiativeisthefirstofitskindbyacitybanktopromotethesupplyoffacilitiesandhousingforseniorsandmedical-relatedandotherhealthcarefacilities,whichisanurgentpriorityinJapanwithitsrapidlyagingpopulation.
◦SocialBackgroundRapidlyAgingPopulationandShortageofHealthcareFacilities
WithJapan’spopulationagingrapidly,theshortageofinfrastructurethatisneededforseniorstolivenormalliveswhilereceivingthemedicalandnursingcaretheyrequirehasalsobeenrecognizedinthegovernment’s“JapanRevitalizationStrategy—JapanisBack,”andaddressingthisandotherissuescausedbyagingisanurgentpriority.
◦RoleofHealthcareREITHealthcareREITaimtoconnectcapitalmarketswiththenursingandmedicalcareindustries,whichareexpectedtoexpandassocietaldemandforsuchservicescontinuestoincrease,throughstableinvestmentandownershipofhealthcarefacilities.
◦ContributingtoCustomers,SocietyThroughestablishmentofthishealthcareREIT,SMBCisnowabletomeetcustomerneedsthatitwaspreviouslynotabletomeet.Forexample,needsrelatingtothesecuritizationofhealthcarefacilitiesownedbycustomersandwiththedevelopmentofhealthcarefacilitieswithaviewtoownershipbyahealthcareREIT.SMBCwillcontinueitsaggressivepursuitofinnovativeinitiativeswithoutbeingtiedtoconvention,aimingtomeettheindividualneedsofitscustomers.Indoingso,SMBCwillactivelyworktotranslateitsinitiativesintosolutionstotheissuesfacedbysociety.
OurGroupcompaniesconductedlessonvisits,seminars,andotheractivitiestopromoteimprovedfinancialliteracytoawiderangeofgenerationsfromelementaryschoolstudents,toworking-ageadultsandseniors.WealsoworkedtodevelopglobalhumanresourcesthroughfoundationsinandoutsideofJapan,andSMBCbeganhandlingwith“SMBCNadeshikoFundandPrivatePlacementBonds”tosupportinitiativesforpromotingmoreworkingopportunitiesforwomen.Infiscal2015,weundertookCSRactivitiestoaddresslocalissuesinAsiawiththegoalofbeinganAsia-centricbank.WealsomadeaGroupwideefforttopromotebetterfinancialliteracy.
Infiscal2014,aspartofoursupportforinheritanceofassetsandbusinessesbythenextgeneration,weestablishedtheHealthcare&MedicalInvestmentCorporationwithSMBCasthemainsponsortopromotetheprovisionoffacilitiesfortheelderlyandmedicalfacilities.Moreover,inourcontributionstoemergingcountries,whichareanimportantarea,PTBankSumitomoMitsuiIndonesiastartedtrainingequipmentsupportforlocalmaritimevocationalschoolandnursingvocationalschool,andtheNewDelhiBranchofSMBCinIndiastartedsupportactivitiesforlocalelementaryschools.
Overview of fiscal 2014 activities and issues
REIT
Capitalmarkets Nursingandmedicalcareindustries
InvestorsEnjoystablereturns
OperatorsSpecializedinhealthcare
facilityoperationsIncreasedfinancing
options
Facility usersSecurestablehousing
Health care facility investment and
ownership
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UnitedCompanyEffortstoPromoteNISA
YangonBranch
SigningaMemorandumofUnderstandingonCSRActivitieswithIndonesianCompany
PromotingCSRActivitiesinIndia
Contributing as a financial institution to emerging countries
SMBCNikkoSecuritiesestablishedtheNISAPlanning&PromotioninMarch2014withthegoalofcontinuingitseffortstopromotetheNipponIndividualSavingsAccountprogram(“NISA”),ataxexemptionsystemforsmallsumofinvestments.ThecompanywillpromotethespreadofNISAamongthosewithlimitedornoexperienceofinvesting.WithregardtoJuniorNISA,whichistobeestablishedin2016,thecompanyisholdinginformationseminarsatallofitssalesofficesthroughoutJapantoexplainhourtosupportassetformationforthenextgeneration,suchasclient’schildrenandgrandchildren.Moreover,theNikkoContactCenterhasestablishedaJuniorNISADeskinadditiontothededicatedhotlineforNISA,toreceiverequestsforconsultation.SMBCNikkoSecuritieswillcontinuetopromoteunderstandingofNISAamongmorepeoplegoingforward,aimingtoincreaseusagethroughpenetrationfromamedium-tolong-termperspectiveandpromotingactivitiestohelpincreasefinancialliteracy.SMBCFriendSecuritiesconductsactivitiestopopularizeandpromotetheNipponIndividualSavingsAccount(“NISA”)program.Infiscal2014,thecompanyheldseminarsonweekendsandholidays,explainedthebasicsoftheNISAprogram,andmetindividuallywithpeopleforconsultationsataspeciallyestablishedNISAcounterinordertomakeit
OntheMarch26,2015,SMBCandPTBankSumitomoMitsuiIndonesiasignedamemorandumofunderstandingonpromotionofCSRactivitiesinIndonesiawiththeDjarumFoundationintheDjarumGroup,oneofIndonesia’smajorcorporateconglomerates.Withthesigningofthememorandum,SMBCmadecontributionsfirstinthefieldofeducation,donatingtrainingequipmentsuchasmarinesimulatorsandshipenginesforamaritimevocationalschool,andnursingsimulatorsforanursingvocationalschool.Goingforward,weintendtocarryoutCSRactivitiesinIndonesiatoraisethequalityofnursingcareeducation.ThesewillincludeacceptingpersonnelincoordinationwithJapanesemedicalinstitutionsandprovidingsupportforJapaneselanguageeducation.
TheSMBCNewDelhiBranchinIndiabeganapartnershipwiththelocalNGODrishteeFoundationforthepurposeofpromotingCSRactivitiesprimarilyinruralareas.Theorganizationwaschosenasthebank’sCSRpartnerduetoitsworkinIndianruralareasover15years,itscollaborationswiththeStateBankofIndia,whichisthecountry’slargest,anditstrackrecordofprojectswithnumerousJapan-affiliatedcorporations.SMBCisactivelypromotinglocalinitiativesthatincludelocalstaffmembershelpingtoholdfielddaysatelementaryschools.
SMBCNikkoSecurities“JuniorNISAGuidbook”
PamphletontheNISAprogramdistributedbySMBCFriendSecurities
Signingthememorandumofunderstanding
Donatedmarinesimulator
Eventwithexecutiveandemployeeparticipation
SMBCobtainedapprovaltoopenabranchinYangon,Myanmar,whichcommencedoperationsonApril23,2015.
easierforcustomersintheirfortiesandfiftiestoparticipate.Inaddition,forexistingcustomers,thecompanyfollowsupwithcallsfromitscallcenteronnon-workdaysorbysendingoutinstructorsfromitsspecializedNISAdepartmenttogiveseminarsforcustomersheldatbranches.AllofSMBCFriendSecuritiesisworkinginthiswaytopromotefurtherutilizationoftheNISAprogram.BasedontheJuniorNISAprogramthatwillbeintroducedin2016,thecompanyisplanningtoholdseminarsforcustomersandwillactivelyworktopromotefurtherutilizationbyexistingcustomersandassetinheritanceacrossgenerations.
ThiswasthefirstcasetoreceiveapprovalsinceitbecamepossibleforforeignbankstoopenbranchesinMyanmar.SMBCalsobecamethefirstforeignbanktoupgradeitsrepresentativeofficeinMyanmartoasub-branchin2012.Thesub-branchhadbeenprovidinginformationandconductingsalesactivitiesinthecountry,butwiththeopeningoftheYangonBranch,thebankwillnowbeabletoconductbankingoperations,includingdepositaccounts,loansandcurrencyexchange.InMyanmar,whereincreasinginvestmentisexpectedespeciallyintheThilawaSpecialEconomicZone,SMBCwillsupportcustomerbusinessactivitieswithagreaterrangeofservices,andthroughitspartnershipwithalliancepartnerKanbawzaBankLimited,thecountry’slargestprivatebank,itwillworktofurtherenhancebankingservicesandcontributetothecountry’sdevelopment.
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Contents / Editorial policy Management Environment Community Management Base
InitiativesforFinancialandEconomicEducation
Workingtowardtheformationofasoundconsumerfinancemarket
Establishmentof“RisingSquare”
Contribution to raising the level of financial literacy
TherespectivebranchesofSMBCaccept,wheneverpossible,studentsofelementaryschooluptohighschoolvisitingthebranch,inadditiontoorganizingavocationalworkshopforelementaryschoolstudentscalled
“NatsuyasumiKodomoGinkoTankentai.”Furthermore,thebanksupportsdiversefinancialandeconomiceducationalactivities,includingpublishingabookforelementaryschoolstudentstitled“WhatDoesaBankDo?,”co-sponsoringKidZania(avocationalexperiencethemeparkforchildren),andsupportingShinagawaFinancialPark(economictrainingprogramsforjuniorhighschoolstudents).SMBCNikkoSecuritiesheldthe“NikkoFamilyExcitingExperienceDay”eventduringsummerholidays,inwhich1,685elementaryschoolstudentsandtheirfamiliesparticipatedinfiscal2014.SMBCConsumerFinanceofferslecturesoneconomyandfinanceforvariousgenerations.KansaiUrbanBankingCorporationorganizesatourofthebankforelementaryschoolstudentsduringthesummerholidays,andalsooffersaworkexperienceprogramforjuniorhighschoolstudents.Inaddition,SMBC,SMFL,SMBCNikkoSecurities,SumitomoMitsuiCard,JRI,MinatoBank,andKansaiUrbanBankingCorporationsendinstructorstoteachclassesatuniversities.
SMBCConsumerFinanceengagesinfinancialandeconomiceducationalactivitiesinordertoformsoundconsumerfinancemarketssothatstudents,thebearersofthefuture,andlocalresidentsalikeobtainaccurateknowledgewithrespecttomoneyingeneralandlearntomakeappropriate
AtournewSMBCEastTower,whichopenedinthesummerof2015,weestablished“RisingSquare,”aseriesofspacesthatvisuallypresentthecompany’scommitmenttoengaginginglobalenvironmentalissuesthroughfinance.The“TangibleEarth”onthefirstfloorshowssimulationsofglobalwarming,typhoons,earthquakes,tsunamis,andmigratorybirds,andintroducestherelationshipbetweentheglobalenvironmentandfinance.“TheMuseumofFinance”onthesecondfloorisaninteractivemuseumthatgivesvisitorstheopportunitytolearnabouttheconnectionsbetweenfinanceandsocietytranscendingtimeandplace.Thespacesarealwaysopentothepublicandarealsousedaswellforfinancialandeconomicseducationprogramsforelementaryschoolstudents.
TangibleEarth
Natsuyasumi Kodomo Ginko Tankentai :Practicingcountingpapermoney
Natsuyasumi Kodomo Ginko Tankentai :Attendingclassatabankbranch
TheMuseumofFinance
SeminarattheCustomerServicePlaza
decisions.Ledbythe18nationwideCustomerServicePlazas,thecompanyconductsseminarsonthreethemesinparticular,lifeplanningandhouseholdfinances,loansandcredit,andfinancialpitfalls.Atotalof2,893seminarswereheldinfiscal2014and156,615peopleattended.Sincetheseminarsbeganin2011,cumulativelyover360,000peoplehaveparticipated.
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HumanResourceDevelopmentbyFoundations
SMBCNadeshikoLoanandPrivatePlacementBonds
Initiativesforpromotingwork-lifebalance
Tokyo2020GoldPartner
Global HR development
Work-life balance and workplace with diversity
SMBCFoundationforInternationalCooperationprovidesscholarshipeveryyearto7-8studentscomingfromAsiatoattendgraduateschoolsinJapanforthepurposeofdevelopinghumanresourceswhichmaycontributetoeconomicdevelopmentofdevelopingregionsandinternationalexchangeactivities.TheSMBCGlobalFoundation,basedintheUnitedStates,hasprovidedscholarshipsformorethan6,000studentsstudyinginAsiancountriessince1994,andalsoprovidessupportforeducationaltripstoJapanorganizedbyahighschoollocatedinHarlem,NewYorkCity,andtheparticipationinschoolbeautificationprogramsbyvolunteersfromSMBC.ThefoundationalsoprovidesmatchinggiftsfordonationsbySMBCemployees.TheHanoiBranch,HoChi
SMBCdeveloped“SMBCNadeshikoLoanandPrivatePlacementBonds”inJanuary2015tosupportclientswhopromoteinitiativesforparticipationandadvancementofwomeninbusiness.Alongwithprovidingloans,theJapanResearchInstitutewillevaluatethestatusofinitiativestakenbytheclientforwomen’sparticipationandadvancementinbusiness,andprovideinformationonprecedentsresolvingissuesofsuchinitiatives.SMBCcontinuestofinanciallysupportclients’initiativesforpromotingparticipationandadvancementofwomeninbusiness.
SMBCisengagedinvariouseventsforpromotingwork-lifebalance.AttheChildren’sVisitationDay,whereemployees’childrencanlearnaboutbankoperations,therewere75groupstotaling194participantsinTokyoandOsaka.Thebankalsoheldthe“GoHomeEarlywithFamilyEvent,”whereemployees’familiesareinvitedtovisittheworkplaceandleavetogetherattheregulartime.Therewerearound1,400participantsinthiseventthroughoutJapan.
SumitomoMitsuiFinancialGrouphasmadeanagreementtobeaTokyo2020GoldPartner(Bank),thehighestrankofdomesticsponsorfortheupcoming2020TokyoOlympicandParalympicGames.
AppearanceintheNihonKeizaiShimbun’sMorningEditiononFebruary26,2015
MinhBranch,andBangkokBranchalsoprovidedassistanceforstudentsattendingfiveuniversitiesincludingVietnamNationalUniversityandHanoiUniversity,andhavesupportedatotalof383studentssince2007.
JapaneducationaltripforhighschoolstudentsinHarlem(infrontoftheSMBCHeadOffice)
InternationalstudentceremonyattheHanoiBranch
SMBC’s“GoHomeEarlywithFamilyDay”
ParticipantsinSMBC’s“Children’sVisitationDay”withPresidentTakeshiKunibe
SMFG’svisionforthenextdecadeis“Wewillbecomeaglobalfinancialservicesgroupthat,byearningthehighesttrustofourcustomers,leadsthegrowthofJapanandtheAsianregion.”Goingforward,weintendtoactivelycontributetothestableadministrationoftheTokyoOlympicandParalympicGamesandtothefurtherstrengtheningofJapan’snationalteams.
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Contents / Editorial policy Management Environment Next Generation Management Base
The very survival of local communities in Japan and other countries is under threat due to phenomena such as natural disasters of unprecedented severity and the outflow of young people. There is a need to build communities that can mitigate the impact of natural disasters and bounce back from such disasters through mutual help and support.Another urgent priority is the creation of a society where elderly people and people with disabilities can live in safety and security. The financial services industry is being called to recognize its responsibilities and take action not only in the areas where it has operations, but in wider communities including borrowers and investees.
The Group recognizes that it is important to consider the public nature of the financial institution and contribute to the development of society through business operations.In addition to the contribution to society through daily business operations, we should assist in making the better society in the future by pursuing diverse social contribution activities in order to fulfill responsibilities as a “responsible corporate citizen.”
In order to lead the form of social participation by each our officer and employee, we emphasize the leadership role of our officers and employees, aiming to increase the number participating in volunteer activities by engaging in social contribution activities.
Recognition of Social Issues
SMFG’s Approach
SMFG’s Management
W Policy for social contribution activities / The backbone for our social contribution activities http://www.smfg.co.jp/english/responsibility/community/
W CSR Activity Performance and Goals of SMFG Companies http://www.smfg.co.jp/english/responsibility/smfgcsr/goal/group.html
In order to effectively promote these activities we have identified the following three issues that SMFG should address.◦ Contribute to achieving and developing safe and secure
communities◦ Community-based activities led by officers and employees◦ Efforts to solve social issues by collaborating with NGOs
and NPOs
Toward a healthy and distinctive community in which everyone can participate
Community
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SupportFundforGreatEastJapanEarthquake
Reconstruction for the Great East Japan Earthquake
SMBCestablishedthesystemsolelyutilizedforthe“GreatEastJapanEarthquakeSupportFund”formakingdonationstothedisasteraffectedareasbydeducting¥400fromemployee’smonthlysalaries.Infiscal2014,wemadedonationscollectedfromouremployeesandthematchingdonationsmadebythebanktoanNPOwithwhichexecutivesandemployeescooperatedforvolunteeractivitiesinthedisaster-affectedareas.SinceMay2011,SMBChasbeenregularlyconductingvolunteeractivitiesparticipatedbyexecutivesandemployeesoftheGrouptosupportdisasteraffectedareasmainlyinIshinomaki,Watari-cho,andHigashi-Matsushimain
Tohelpachievesafeandsecurecommunities,wehavebeenpromotinguniversaldesignanduniversalservice.Atthesametime,wehaveenteredfull-fledgedtrainingofsupportersforclientssufferingfromdementia,andhavecompleteddeploymentofdementiasupportersatallourlocations.Infiscal2015,wewillconductfurtheractivitiestoaddresssocialissuesinandoutsideJapan,andtorespondtochangingneedsinareasaffectedbytheGreatEastJapanEarthquake.Asafinancialinstitution,wealsointendtocreateanenvironmentthatallofourcustomercanusewithconfidenceandcontinueoureffortstoimproveservices.
Infiscal2014,wemadedonationstoorganizationstacklingvarioussocialissuesandcontinuedtoundertakevolunteeractivitiesincollaborationwithvolunteergroups.TheseactivitieswereconductedundertheSMBCVolunteerFund,whichisfundedbydonationsdeductedfromthemonthlysalariesofvolunteeringexecutivesandemployees.Furthermore,employeesfromallGroupcompaniesparticipateinvolunteeractivitiesinareasaffectedbytheGreatEastJapanEarthquake.Activitiesincludevisitingtemporaryhousing,supportingthefishingindustry,tree-planting,andtowncreation.Inaddition,wehavelaunchedanewvolunteeractivityofconductingenvironmentalsurveysintsunami-devastatedareas.
Overview of fiscal 2014 activities and issues
MiyagiPrefecture.Over700intotalofemployeesandtheirfamilymembersparticipatedintheactivities.SocialmeetingstointeractwiththepeopleevacuatedtoTokyofromdisasteraffectedareashavebeenregularlyheld,withparticipationbymembersofSMBC’svolunteeringsociety,YUI.SMBCFriendSecuritieshasbeenindependentlyconductingthe“recoverysupportvolunteerprogram”sinceJuly2014.Theprogramhasbeenruntwicenow,withactivitiesprimarilyheldatthecityofIshinomaki,MiyagiPrefecture.Atotalof35stafffrombranchesthroughoutJapanparticipated.Theactivitiesincludeassistingwiththefishingindustry,whichhassufferedashortageofworkerssincetheearthquake,andinteractingwithresidentslivingintemporaryhousing.
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Creating branches that people can visit with confidence
Introduction of the COMUOON tabletop communication support system
Universal design initiatives
Contribute to achieving and developing safe and secure communities
SMFG is promoting the creation of branches that the elderly and people with disabilities can visit with confidence.We have approximately 1,800 care service assistants, and in fiscal 2014 we began full-scale training of cognitive impairment supporters to prepare for the aging of society. As of March 31, 2015, there are approximately 5,600 specialized staff members to assist people with cognitive impairment assigned mostly at its branches.
Minato Bank is promoting efforts to create branches that are customer-friendly, such as aiming to provide services from the perspectives of all kinds of customers. These initiatives address both hard and soft aspects. The bank’s efforts in terms of hard aspects include deploying
“ATMs equipped for people with visual impairment,” which have audio guidance functions provided through a handset. They have also installed “color universal design reception number displays” that are easy for elderly people and people with visual impairments to see. For customer with auditory impairments, the bank has installed hearing aids at the counters. In terms of soft aspects, the bank has deployed at least one staff member at each branch who has completed practical training on universal service and a course for training supporters for people with cognitive impairment. As the
“Service Care Managers” within the bank, these staff play a central role in supporting elderly customers or those with physical disabilities. Kansai Urban Banking Corporation has also taken action to introduce services and equipment at its counters and in its lobbies to enable customers to visit branches with confidence.
Cognitive Impairment Seminar for newly-hired employees
Cognitive Impairment Supporter Seminar
Initiatives at Kansai Urban Banking CorporationIn summer 2015, SMBC introduced the COMUOON tabletop communication support system at 10 branches. The system works by assisting the speaker instead of the hearing-impaired listner.Considering communication as a primal issue, we will strive to be a kind financial institution for every customer.
COMUOON tabletop communication support system
ATM
ATMs for the visually-impaired
“Ear” marks
Communication boards
Writing boards
Sponge gripsReading glasses
Priority seats
Cane holders
Hearing aids
OfficeCounters
Tables
Sofas
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Participationinthe“TABLEFORTWO”Program
SMBCVolunteerFund Socialcontributionthroughproductsandservices
ActivitiesforexecutivesandemployeesinandoutsideofJapan
Community-based activities led by officers and employees
Efforts to solve social issues by collaborating with NGOs and NPOs
SMBCparticipatesintheprogramwhichprovidesdonationstothenon-profitorganizationofthe“TABLEFORTWOInternational”tofundschoolmealsinemergingcountries,
foreverymealpurchasedfromthehealthymenuforlunchatthecompanycafeteriasnationwide.Infiscal2014,98,738mealsweredonatedthroughtheprogram.SMFL,SMBCNikkoSecurities,SMBCFriendSecurities,SumitomoMitsuiCard,andSMBCConsumerFinancearealsooperatingtheprogramattheirheadofficecafeteriaandvendingmachines.
SMBChasasystemforvolunteeringexecutivesandemployeestohavefrom¥100upto¥1,000deductedfromtheirmonthlysalariestodonatetovolunteerorganizations.Morethan11,000employeesparticipateinthisprogram,asofMarch2015.Theorganizationsareselectedbasedonthoroughinvestigationsanddiscussionsbythepanelofexpertsandemployees.Infiscal2014,donationsweremadeto31organizationswhichengageinresolvingsocialissuesinJapanandoverseas.
Throughitscreditcardoperations,SumitomoMitsuiCardprovidescardholderswithopportunitiestomakecontributionstosocietywithoutinconvenience.SumitomoMitsuiCardcollecteddonationsfromcardholdersthroughtheWorldGiftsPointServicepointprogramforcardholdersofVJAgroupcompaniestoprovidetoUNICEF,UNESCO,theWorldWildlifeFundJapanandtheWorldFoodProgram.SumitomoMitsuiCardmadesomedonationstoUNICEFaswell.Italsoacceptsonlinecreditcarddonations,anditissuessocially-contributingtypecreditcardsanddonatesthepartoftheamountspentbyclientsusingsuchcreditcards.Cedynaisalsoconductingsocialcontributionactivitiesthroughitscreditcardoperationstogetherwithcardholders.Thecompanyhassetupa“donation”optionfortherecipientofpointsissuedbasedontheusageofthecreditcards,therebyprovidinganopportunityforcardholderstoparticipateinsocialcontributionactivities.CardholderscansupportbyselectinganoptioninwhichthepointstheyaccumulatethroughuseofthecreditcardsaredirectedintodonationsforsupportingorganizationsdesignatedbyCedynathataretacklingvarioussocialproblems.Thetotalamountofdonationsmadeinfiscal2014cametoroughly¥8million.
Examples of donation recipients
◦JapanOrganizationswhichprovidesupportforawareness-raisingactivitiesforthepreventionofchildabuse,childcaresupportactivities,foodassistanceprogramforpeoplelivinginpoverty,andsupportpeoplewithdisabilitiestobecomeself-sustained,andotheractivities.
◦OverseasOrganizationswhichprovidesupportforre-forestationactivitiesinIndonesiaandMalaysia,healthsupportprogramsforschoolsinEastTimor,andagriculturalvillagesinZambiatobecomeself-sustained,andotheractivities.
SMBChasbeenpromotingitsownindependentinitiativesthataretailoredtotheissuesandcultureofeachcountryandregion,bothinanoutsideofJapan.InJapan,thebankpresenteditsexecutivesandemployeeswithvolunteeractivitiesofNPOsandotherorganizationsthatworktoresolvesocialissues,andconductedaprogramforstaffparticipationtosupporttheactivitiesoftheseorganizations.Overseas,forexample,SMBC’sSingaporeBranchhelditsfirstblooddonationdrivesinfiscal2012,with10employees
participating.Infiscal2013,thebranchinitiatedvariousdonationdrivesandvolunteeractivitiesinvolvinglocalchildrenandtheelderly.
AreportingmeetingoftheSMBCVolunteerFund
AsocialeventatSingaporeBranch
AcertificateofappreciationforaGoldSupporter
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Contents / Editorial policy Management Environment Next Generation Community
With the formulation of the Japan’s Stewardship Code and Corporate Governance Code, we need to pursue even higher management transparency and efficiency and to promote activities with a focus on dialog with stakeholders. Due to its highly public nature, the financial services sector is required to implement thorough risk management to underpin its responsibility for business continuity and to ensure highly transparent and fair products and services for customers.
The Group is determined to promote initiatives to create value for society under the three key issues, the environment, the next generation, and the community. The company is promoting “key issues to be addressed on a solid management base” as a foundation for all corporate activities. To promote this effectively, we have identified the following eight issues to be addressed.
Each responsible business unit has set up a PDCA cycles based on various policies and structures.
Recognizing social issues
SMFG’s approach
SMFG Management
W Solid Management Structure http://www.smfg.co.jp/english/responsibility/organization/
W Management to Improve CS and Quality http://www.smfg.co.jp/english/responsibility/cs/index.html
W Five Goals of SMBC’s Human Resources Development http://www.smfg.co.jp/english/responsibility/employee/index.html
W CSR Activity Performance and Goals of SMFG Companies http://www.smfg.co.jp/english/responsibility/smfgcsr/goal/group.html
◦Interaction with stakeholders◦Customer satisfaction◦Pleasant workplace and work environment◦Corporate governance◦Risk management◦Rigorous information management◦Fair business practices and competition◦Severing any relations with anti-social forces
Keyissuestobeaddressedonasolidmanagementbase
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W Communication with Customers (Japanese only) http://www.smfg.co.jp/responsibility/cs/activities/
FundamentalapproachforCSandQuality Improvingtheconvenienceofafter-hoursATMservices
ManagementtoimproveCSandQuality
Trainingemployees Workenvironment
Customer satisfaction
Pleasant workplace and work environment
SMFGshallimplementmeasurestoimproveCSandQualitywhilecooperatingamonggroupcompaniesbysettingforthasoneofourmanagementprinciples:“Tofoundourownprosperityonprovidingvaluableserviceswhichhelpourcustomerstobuildtheirprosperity.”
◦Eliminatingtransactionfeesonafter-hoursdepositsPreviouslyinSMBC,atransactionfeeof¥108waschargedfordepositsatATMsoutsidethehoursof08:45-18:00andonSaturdays,Sundays,andpublicholidays;however,sinceNovember20,2014,individualcustomersandindividualbusinesscustomershavebeenabletomakedepositsfreeofcharge.
◦Startofafter-hoursdepositsbypassbookOnDecember3,2014,SMBCintroduced24-hourATMdepositsusingapassbookforindividualcustomersandindividualbusinesscustomers.(TheserviceisunavailablefromSunday21:00toMonday07:00eachweekduetosystemmaintenance).
SMFGregularlyholdsmeetingsforthe“GroupCSCommittee”whichischairedbytheseniormanagementexecutiveofthegeneralaffairssectionoftheGroupforpromotingcooperationamonggroupcompanies.ThecommitteediscussesandexchangesopinionsandideasregardingopinionsandsuggestionsreceivedfromourclientsorCSpromotionpolicies,anditstrivestofurtherimproveCSandQualityoftheentireGroup.
Todevelopprofessionalandspecializedemployeeswhocanprovideourclientswithhighlyvaluedproductsandservices,wearefurtherstrengtheningthetrainingsystemsinrespectiveGroupcompanies.
◦Jointtrainingcoursesandget-togethersprovidedforSMFGemployeesateachpromotionallevel
ToimproveunderstandingoftheSMFGGroup’soverallimageanditsmanagementpoliciesandtostrengthenthesenseofunityandtogethernessamongtheGroup’sstaffasapartof“TeamSMFG,”weconductjointtrainingprogramsforemployeesfromtheGroup’seightmajorcompanies*.Weconductjointtrainingseminarsandsportseventsfornewly-hiredemployees,whileforourexecutiveofficersandmanagement-levelemployeeswealsoprovidetheSMFGJointTrainingCourse.
◦Firstintroductionofaworkassistancerobotatafinancialinstitution
InMay2015,SMBC’ssubsidiarySMBCDeliveryServiceCo.,Ltd.becamethefirstfinancialinstitutiontointroducetheRobotSuitHAL®forLaborSupport(Lumbar)developed,manufactured,andsoldbyCYBERDYNE,Inc.SMBCDeliveryServiceisacompanythatcollectsanddeliverscash.ItismainlyinvolvedinallocatingcashthatistransportedtoSMBCbranches.Thetransportedcashisratherheavy,andthisoftenplacesaphysicalstrainonemployeeswhentheyarecarryingit,particularlysenioremployees.SMBCandSMBCDeliveryServicethereforedecidedtoimprovetheworkingenvironmentandtomakeiteasyforevensenioremployeestoworkbyrelievingthephysicalload.Tothisend,theyintroducedRobotSuitHAL®forLaborSupport(Lumbar)tolightentheloadonthelumbarareawhenworking.*Theeightmajorgroupcompaniesare:SMBC,SumitomoMitsui
FinanceandLeasing,SMBCNikkoSecurities,SMBCFriendSecurities,SumitomoMitsuiCardCompany,CedynaFinancialCorporation,SMBCConsumerFinance,andtheJapanResearchInstitute.
RobotSuitHAL®forLaborSupport(LumbarType)
SMFGJointSportsdayeventforNewRecruits
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Initiativesonhumanrights Achievinghealthyandfulfillinglifestyles
Basicpoliciesforriskmanagement Riskmanagementsystem
Corporate governance
Risk management system
SMFGanditsGroupcompaniesfollowtheSMFGmanagementphilosophysetforthastheuniversalguidefortheGroupmanagementandconsiderthisphilosophyasthefoundationforanycorporateactivities.Weareworkingtoimprovetheeffectivenessofcorporategovernanceasweconsiderstrengtheningandenhancementofcorporategovernanceasoneofthetopprioritizedissuesinordertoachievethemanagementphilosophy.Further,SMFGestablishesits“SMFGCorporateGovernanceGuideline”asitsprinciplesandguidelinestobereferredtoforcorporategovernance,inordertoimprovesustainablegrowthandmedium-andlong-termcorporatevaluesbypreventingtheoccurrenceofmisconductandunsoundcorporatesituationsandthroughachievingeffectivecorporategovernancewiththesemeasures.
SMFGparticipatesinthe“UnitedNationsGlobalCompact,”andalsoendorsesandsupportsits10Principlesintheareasofhumanrights,laborstandards,environment,andanticorruptionmeasures.InadditiontothestudysessionsheldbySMBConthemessuchasforcedlaborandchildlabor,eachGroupcompanyisalsoimplementingmeasurestofurtherenhanceawarenessofindividualhumanrightsbyorganizinghumanrightsawarenessstudysessions,andinvitingemployeestoreflectandcomeupwithanindividualhumanrightsstatement.
SMFGcompaniespursuenumerousinitiativesthatgiverisetosafeandpleasantworkplaceenvironments,andfurthermorehelpemployeesachievehealthierandmorefulfillinglives.Forinstance,SMBChassetuptwohealthsupportcenters,oneinTokyoandtheotherinOsaka,taskedwithoverseeingemployeehealthcare.Thecentersarepermanentlystaffedwithoccupationalhealthphysicians,nurses,publichealthnursesandotherhealthcareprofessionals,Thecentersalsohaveon-sitehealthclinics.SMFGcompaniesalsoforgesoundmanagement-workerrelationsthrougheffortsthatincludeholdingregulardiscussionswithrespecttolaborconditionsandhumanresourcepractices.
Asrisksinthefinancialservicesincreaseindiversityandcomplexity,riskmanagement—identifying,measuring,andcontrollingrisk—hasneverbeenmoreimportantinthemanagementofafinancialholdingcompany.SMFGhasestablishedthebasicprinciplesofGroup-wideriskmanagementinthe“RegulationsonIntegratedRiskManagement.”Intheregulations,weidentifythelocationandthetypeofrisktobemanagedinaccordancewithstrategicgoalsandbusinessstructures,andthenmanageeachriskappropriatelyaccordingtoitscharacteristics.
W Our Mission http://www.smfg.co.jp/english/aboutus/principles.html
W Corporate Governance (Our Position on Corporate Governance, The SMFG Corporate Governance System) Annual Report 2015 http://www.smfg.co.jp/english/investor/library/annual/h2703annu_pdf/h2703_e_17.pdf
W SMFG Corporate Governance Guideline http://www.smfg.co.jp/english/aboutus/pdf/cg_guideline_e.pdf
W Corporate Governance Report (Japanese only) http://www.smfg.co.jp/aboutus/pdf/cg_report.pdf
W Risk Management (Basic Approach, Risk Management System) Annual Report 2015 http://www.smfg.co.jp/english/investor/library/annual/h2703annu_pdf/h2703_e_14.pdf
SMFGhasestablishedthe“PrincipalPolicyforGroupRiskManagement,”whichisdeterminedbytheManagementCommitteebeforebeingauthorizedbytheBoardofDirectors.TheManagementCommittee,thedesignatedBoardmembers,andtherelevantriskmanagementdepartmentsperformriskmanagementaccordingtothebasicpolicies.RiskmanagementsystemsareinplaceatindividualGroupcompaniesinaccordancewithSMFG’sGroupwidebasicpoliciesforriskmanagement.TheCorporateRiskManagementDepartmentcomprehensivelyandsystematicallymanagesallcategoriesofriskincooperationwiththeCorporatePlanningDepartment,bymonitoringtheconductofriskmanagementatGroupcompaniesandprovidingguidancewhennecessary.
34 CSR Report 2015Sumitomo Mitsui Financial Group
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Rigorous information management
Fair business practices and competition
Severing any relations with anti-social forces
AtSumitomoMitsuiFinancialGroupandallthecompaniesintheSMFGGroup,wepracticeappropriatesafekeepingandutilizationofourcustomers’personaldatainaccordancewiththeSMFGPrivacyPolicythatstipulatesourpolicytoprotectandtoadequatelyusepersonalinformation.Withregardtosystemforthemanagementofourcustomers’personalinformation,theBoardofDirectorshasmadeimportantresolutionsregardingtheprotectionof
TheComplianceManualoftheSumitomoMitsuiFinancialGroupstipulatesthattheGroupmustconductcompetitiveactivitiesinthemarketinafairmanner.Inaddition,eachGroupcompanylaysdownrulestofacilitateandencouragetheobservanceofalllegislationrelatingtothatcompany’slineofbusiness,includinglawsrelatingtothepreventionofmonopolies,truth-in-advertising,subcontracting,andunfaircompetitionprevention,andthe
SumitomoMitsuiFinancialGrouphassetdownabasicpolicystipulatingthatallGroupcompaniesmustuniteinestablishingandmaintainingasystemthatensuresthattheGroupallowsnorelationshipwhatsoeverwithanti-socialforcesorrelatedindividuals.Specifically,allcompaniesmustpreventdamagesfromanti-socialforces,sothatnobusinesstransactionsaremadewithanti-socialforcesorindividuals.Allcontractualdocumentsortermsandconditionsmustincludecontractsandtermsoftransactionsclausesregardingtheexclusionofanti-socialforcesfromanybusinessrelationship,andintheeventthatitisdiscoveredsubsequenttothecommencementofadealortradingrelationshipthattheoppositepartybelongstoorisaffiliatedwithananti-socialforce,weundertakeappropriateremedialactionbycontactinganoutsideinstitutionspecializinginsuchmatters.
W Compliance (Basic Approach, Compliance System) Annual Report 2015 http://www.smfg.co.jp/english/investor/library/annual/h2703annu_pdf/h2703_e_19.pdf
customerdata.TheBoardregularlymonitorstheprogressbeingmadeinmeasurestoensuresuchprotection,andordersactiontobetakenwhendeemednecessary.WealsoworkconstantlytokeepabreastofdevelopmentsinthefieldofinformatizationthroughimprovementstoSMFG’spersonalinformationprotectionmanagementsystemandmeasurestakentoenhanceinformationprotection.
managementsofallthecompaniesworkinvariouswaystoensurethattheiroperationsareinaccordwiththeprinciplesoffairtradingandfaircompetition.Forexample,SMBChaspublishedan“AntimonopolyActManual,”andtopreventunfairtradepractices,thebank’smanagementtakesstepstoensurethatallstaffarefullyinformedregardingsuchmattersascartelsandtheabuseofdominantbargainingpositions.
BasicPolicyforAnti-socialForces
1.Completelyseveranyconnectionsorrelationswithanti-socialforces.
2.Repudiateanyunjustifiableclaims,anddonotengageinany“backroom”dealswhatsoever.Further,promptlytakelegalactionsasnecessary.
3.Appropriatelyrespondtoanyanti-socialforcesasanorganizationbycooperatingwithoutsideprofessionalagencies.
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InJapanandoverseas,thereisadrivetobuildsystemsandframeworksforcreatingsustainablesocieties.Corporatemanagementhasamajorroletoplayinthisaswell.FollowingtheintroductionoftheJapaneseStewardshipCodeinFebruary2014,theCorporateGovernanceCodethathasbeenappliedtolistedcompaniessinceJune2015summarizesandclearlysetsoutinitiativesforEnvironment,Society,andCorporateGovernance(“ESG”).LookingatInternationalsociety,theyear2015isakeyjuncture,withtheUnitedNationsadoptingthe2030AgendaforSustainableDevelopment,underwhichinternationalsocietywillstrivetoachieveby2030.Bearingthesetrendsinmind,IwouldliketomakethethreefollowingpointsabouttheactivitiesdescribedinSumitomoMitsuiFinancialGroup’sCSRReport2015.
◦CommitmentfromthetoptoCSRmanagementSMFGaimstocontributetothesustainabledevelopmentofsocietyoverallbypositioningitscontributiontosolvingseriousissuesonaglobalscaleastheGroup’ssocialresponsibility.Undertheleadershipoftopmanagement,theentireGroupispromotingCSRtogetherbystrengtheningandenhancingitscorporategovernance,whileundertakingCSRthatisintegratedwithitsbusinessactivities.Itisalsoexcellenttoseethatthemanagementteamisparticipatinginthematerialityidentificationprocessthatstartedinfiscal2013.
◦StanceondisclosureWithregardtomateriality,theGrouphasdonewelltocomplywiththeGlobalReportingInitiative(GRI)G4Guidelinesbyidentifyingtheissuesthatitshouldaddress,andtheirboundaries,anddisclosingtheassociationbetweenthemandthespecifiedstandarddisclosureitemsonitswebsite.IlookforwardtoseeingfurtherprogressontransparencyofCSRmanagementgoingforward.Anothercommendablefeatureofthe2015reportisthatitcomplieswiththeEquatorPrinciplesbydisclosingthenumberofprojectsinwhichenvironmentalandsocialriskassessmentswereconducted.Thereareagrowingnumberofcasesinwhichloansbyfinancialinstitutionshavebecomeproblematicforthelendinginstitutionwhenprojectshavecausedenvironmentalissuesorhumanrightsinfringements.Ihopetoseeasmuchdisclosureaspossibleregardingthestandardsandproceduresandsoforthforconductingenvironmentalandsocialriskassessments.
◦ContributiontoemergingcountriesandCSRglobalizationOverthepastfewyears,theGrouphasbeenexpandingitsinitiativestohelpcreatesustainablesocietiesglobally.ExamplesincludetheexecutionofassessmentloansandprivateplacementbondstosupportenvironmentallyconsiderateactivitiesbycorporationsinMalaysiaandThailand,aswellasCSRactivitiesdesignedtoaddressneedsandsocialissuesinIndonesiaandIndia.InAprilthisyear,theGroupstartedoperationsatitsbranchinYangon,Myanmar.IhopethatwhentheGroupconductsbusinessinemergingordevelopingcountries,itwilltakeaproactivestanceoneconomicandsocialcontributions,andtakeproperstepstoidentify,prevent,andalleviatesocialandenvironmentalriskswithahighpotentialofoccurring.Finally,itissaidthatcorporationswillplayasignificantroleinachievingthetargetsofthe2030AgendaforSustainableDevelopment.IlookforwardtoseeingSMFGutilizeitsfinancialfunctionstomakeevengreaterstridestowardsthecreationofsustainablesocieties.
SMFG’sproactivecorporatesocialresponsibilityactivitieshavewonplauditsfromthemarkets.TheGroupcontinuestobeincludedinthefollowingmajorsociallyresponsibleinvestment(SRI)indexes.SRIIndexesareastandardforinvestmentdecisionsthatarebasednotonlyonfinancialperspectives,butalsoonimportantviewsincludingenvironmentalconsiderationsandsocialcontributions.WebelievethatthisisanendorsementbythemarketoftheGroup’sfuturecorporatesocialresponsibilityactivities.
SRI Indexes on which SMFG is listed (as of August 31, 2015)◦FTSE4GoodGlobalIndex◦FTSE4GoodGlobal100Index◦ESI(EthibelSustainabilityIndex)ExcellenceGlobal
KaoriKurodaExecutive Director CSO Network Japan
Third party opinion
Recognition for SMFG CSR initiativesSRIIndexesSMFGhaslisted
36 CSR Report 2015Sumitomo Mitsui Financial Group
Contents / Editorial policy Management Environment Next Generation Community Management Base
Solid Management Structure (Corporate Governance/Internal Audit System/Compliance/Risk Management) W Web http://www.smfg.co.jp/english/responsibility/organization/index.html
Management to Improve CS and Quality W Web http://www.smfg.co.jp/english/responsibility/cs/index.html
The Group Environmental Policy/Environmental Management System Based on ISO14001 Certification W Web http://www.smfg.co.jp/english/responsibility/environment/
Policy for Social Contribution Activities/The Backbone for Our Social Contribution Activities W Web http://www.smfg.co.jp/english/responsibility/community/index.html
Five Goals of SMBC’s Human Resources Development W Web http://www.smfg.co.jp/english/responsibility/employee/index.html
CSR Activity Performance and Goals of SMFG Companies W Web http://www.smfg.co.jp/english/responsibility/smfgcsr/goal/group.html
Performance Data and Goals of the Six Principal SMFG Companies W Web http://www.smfg.co.jp/english/responsibility/environment/
achievement/
SMFG Environmental Data W Web http://www.smfg.co.jp/english/responsibility/environment/
reduction/data01.html
Initiatives for Environmental Buinesses by Group Companies W Web http://www.smfg.co.jp/english/responsibility/environment/business/
data.html
Employees W Web http://www.smfg.co.jp/english/responsibility/employee/personnel/
Main Work-Life Balance Support Systems W Web http://www.smfg.co.jp/english/responsibility/employee/life/
SMFG Group policies and framework
SMFG data
CSR REPORT 2015
http://www.smfg.co.jp/english/responsibility/
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