Nikko Asset Management Co., Ltd. (Nikko AM) has just issued a pair of annual reports that underscore the firm’s ongoing global commitments, both as a fiduciary and steward of clients’ capital, and as a responsible corporate citizen. Sustainability Report 2024 presents both sides of the coin, explaining sustainable investment structures, Nikko AM’s Environmental, Social and Governance (ESG) approach, frameworks and milestones, as well as various corporate sustainability activities in the firm’s own operations. Meanwhile, Global TCFD Report 2024 takes a deep dive into climate related risks and opportunities by assessing the firm’s investments and operations aligned with the recommendations of the Task Force on Climate Related Disclosures (TCFD). Both reports cover the 2023 calendar year.
Sustainability Report 2024
Sections of the report about Nikko AM’s sustainable investment efforts were led by the Global Sustainable Investment Team – asset class agnostic specialists dedicated to fostering integration of sustainable investment across the firm working closely with the investment teams. It features updates on approaches to sustainable investment by each in-house asset class team, including Japan equities, Asian equites, Asian fixed income, global equities, global fixed income and multi-asset. The report also presents examples of proxy voting and engagement with investees towards sustainable investment goals, and new elements about collaborative engagement, and how the firm prevents greenwashing.
Sustainable investment milestones from 2023 include expansion of the firm’s sustainable fund offering such as Articles 8 and 9 of the EU’s Sustainable Finance Disclosure Regulation, joining collective engagement initiative Nature Action 100, and entering into a strategic partnership with Osmosis (Holdings) Limited, a UK-based sustainable investment manager specialising in a resource efficient strategy.
Sections about Nikko AM’s efforts as a responsible corporate citizen were led by the Global Corporate Sustainability Team, describing efforts carried out by the 11 sustainability groups spanning various themes and geographies, united around Nikko AM’s three pillars of sustainability: diversity and inclusion, reducing inequalities, and environment & climate. This year’s report features a new section explaining the connection between cybersecurity and sustainability.
Nikko AM President Stefanie Drews commented, “I am delighted with how far our Sustainability Report has come. We believe that ESG considerations are inherent to long-term corporate value creation and contribute to sustainable economic growth. The report also holds us accountable in showing the progress towards our own sustainability goals, such as having at least 30% of management positions, globally, held by women by 2030, and lowering greenhouse gas emissions from our corporate operations by 40% per employee by 2030, compared with 2019 levels .”
