Everything we do at Nikko AM begins with sustainability. We want your investments to make a positive impact in our world, so we have made environmental, social, and governance (ESG) considerations part of all our investment processes. We are also determined to see the firms we invest in improve their corporate value and grow sustainably. We do this by meeting with them regularly and encouraging them to keep putting ESG factors first in their businesses.
Through our corporate sustainability activities, we have nurtured a culture of people who care deeply about our workplaces, our communities, and our world.
Over the years, we have developed a culture at Nikko AM that values sustainability. We keep learning, growing, and acting so we can make a lasting difference in the areas of diversity & inclusion (D&I), reducing inequalities, and environment & climate. We collaborate globally and act locally.
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. Our sustainability groups — including those on women’s empowerment, the LGBT community, racial equality, and disabilities — tell us the next steps we need to take, and we listen.
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.
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.
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.
Read more about Investment Management at Nikko AM
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.
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.
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.
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.
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.
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.
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.
news 28 November 2022
Read our latest report on Nikko AM’s environmental initiatives regarding our corporate operations here.
news 25 April 2023
Read our latest response – April 2023
insights 20 September 2022
In recent years, the increased focus on ESG has validated our beliefs. Yet, the complex and fast-changing economies and societies that make up Asia continue to be a challenge confronting investors looking to apply ESG analysis across Asian asset classes. This is a good thing, as investors who can do this successfully will likely add even more value to alpha generation.
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.
Read more about our commitment to fiduciary principles
Policies and guidelines
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