Nikko AM | Invested in Sustainability

Our work, investments and processes has environment, social and governance (ESG) considerations built firmly in our core. We are determined to support the firms we invest in to improve their corporate value and grow sustainability by putting ESG factors first in their businesses.

As a company, we influence and nurture a culture of people creating multiple impact in our workplaces, communities and the world we live in.

Corporate Sustainability
Investment Management
Insights & News
Fiduciary & ESG Principles

Corporate Sustainability

Committed to Sustainability

Diversity & Inclusion

We are strong because we are diverse and inclusive. Our culture embraces people of different races, genders, ages, abilities, sexual orientations, and religions, and we appreciate the perspectives they bring.

Reducing Inequalities

We want to do whatever we can to help others move forward in their lives and reduce inequalities in our world. As we give to charities and volunteer our time, we support vulnerable groups such as women, children, refugees, low-income families, and victims of human trafficking.

Environment and Climate

We constantly think about how to lessen the impact of our actions on the environment. We are involved in a number of projects to help tackle climate change, and we are always actively working to reduce our carbon footprint.

Investment Management

ESG drives our investment strategies

Sustainability and ESG factors are the driving force behind our investment decisions. In 1999, we launched Japan’s first socially responsible investment fund, and we keep improving our ESG efforts and developing innovative ESG solutions for your investments. For example, the pioneering ESG assessments and digital tools we have created help us to make the best possible decisions.

We also understand the urgent need to address climate change through our business so, in 2021, we joined the Net Zero Asset Managers Initiative. In November 2022, as part of our participation in the initiative, we have launched a 2030 greenhouse gas emission reduction target. This interim target is to reduce our greenhouse gas emissions by 50% by 2030 (compared to levels as of 31 December 2019) for 43% of total groupwide AUM (as of end December 2021). Further details with regards to our climate change approach will be released in our next TCFD report. This shows our commitment to strengthening our response to the crisis, in line with the Paris Agreement.

Global Equity

The Global Equity team finds purpose-led Future Quality companies that can attain the best returns on capital. We believe that the market will allocate capital to companies addressing society’s problems, and that they are best placed to sustain relatively higher returns.

Japan Equity

The Japan Equity team pursues alpha through a combination of financial and non-financial information including ESG. We believe that a superior investment process should focus on ESG factors that lead to future earnings and strengthen competitiveness.

Asian Equity

The Asian Equity team identifies companies that are capable of sustaining high returns and/or fundamental change. ESG is a key pillar of the assessment of sustainable returns and fundamental change. As a result we focus on ESG issues that are material to shareholder returns.

Global Fixed Income

ESG is considered across the Global Fixed Income team’s entire offering and is applied at the screening & research and portfolio construction stages. An example is our Global Green Bond strategy which invests in bonds from issuers with the strongest sustainability credentials.

Japan Fixed Income

The Japan Fixed Income team believes it is crucial to analyse not only quantitative risks but also qualitative risks that cannot be captured by financial analysis. The ESG viewpoint is positioned as an important factor in the qualitative risk analysis.

Asian Fixed Income

On the Asian Fixed Income team, our Internal Credit Rating model incorporates the assessment of a range of ESG factors and risks. This research and evaluation are key elements of our credit analysis as we view ESG as essential to value creation over the long term.

Some important information on investment advisory agreements and discretionary investment agreements can be found at en.nikkoam.com/risk-information.

Insights & News

Sustainability insights by our thought leaders

Our investment professionals have valuable insights into ESG in investments. We regularly post their thought leadership articles and give updates on the latest sustainability-related developments that are happening at our firm.

insights 11 September 2023

Climate change solutions in Japan

The climate change crisis we are witnessing presents both challenges and opportunities. Focusing on the latter from an investment perspective, in our view asset managers are in a position to help facilitate society’s goals of reducing GHG emissions and decarbonising.

Read article

insights 16 August 2023

New Zealand Equity Monthly – July 2023

The devastation from the tropical cyclone and flooding that struck New Zealand’s North Island in February 2023 was a reminder of the increasing need to mitigate extreme weather events and to take stock after they strike.

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insights 28 July 2023

Climate transition: threats and opportunities

Nikko AM’s Head Portfolio Manager – Core Markets, Steven Williams, recently participated in Asset TV’s Masterclass on the threats and opportunities for investors in the climate transition. Here are the highlights of Steven’s contribution to the discussion.

Read article

Fiduciary & ESG Principles

Fiduciary & ESG principles

Our fiduciary duty determines our values and actions. That means we are fully committed to meeting our clients’ needs while also carefully considering the interests of all our stakeholders. There is no question it is part of our fiduciary duty to take ESG principles into account in our investment decisions because these considerations are critical for a firm’s long-term value and sustainable economic growth.

We keep innovating and improving so that we always stay true to the spirit of fiduciary and ESG principles.