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.

 

 

Committed to diversity, equality, and the environment

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.

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. 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.

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.

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. 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
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.

Walking the talk

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 October 2021

Nikko AM TCFD 2020 Report

In our third annual report, we analyse the impact of climate change on our operating results and financial positions in the 2020 calendar year, focusing on the Task Force on Climate-Related Financial Disclosures (TCFD)’s recommendations with respect to governance, strategy, risk management and metrics and targets.

news 6 October 2021

Nikko AM Revamps Environmental Policy

Nikko Asset Management (Nikko AM) has just revamped its Environmental Policy, with a framework aligning all of the firm’s offices around the world in how to consider environmental factors when conducting business. The policy also sets a firm target of a 40% reduction in greenhouse gas emissions, and commits to disclosing regular progress updates towards that target.

insights 28 September 2021

Funding high-impact climate action with green bonds

The past five years have been the hottest since records began. In the decade to 2020, global surface temperatures were 1.09C higher compared to the pre-industrial era (1850–1900)1. The Intergovernmental Panel on Climate Change (IPCC) warns that stabilising global warming below the 1.5C level is critical to avoiding the most extreme impacts on ecosystems and human health.

Read more of our insights and news releases related to ESG and sustainability

The responsibility that guides us

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