Nikko AM's Approach
Nikko AM sees the implementation of environmental, social, and governance (ESG) factors in our investment processes as an ongoing journey of how best to apply the highest standards.
ESG factors are rooted in our investment philosophy, with a process that consistently integrates ESG considerations. We believe that attention to ESG is about good investment discipline and is not a separate exercise. Instead, it is core to the business and inherent to long-term value creation.
Different asset classes have different dynamics, with varied geographies and industry sectors adding to that complexity. This makes ESG implementation more akin to an art than a science within portfolio construction. Each investment team interprets ESG implementation through its own lens, leading to differentiated approaches, but they always apply these considerations the highest standard.
ESG considerations are fundamental to all of our strategies, including:
- Japan Equity
- Global Equity
- Asian Equity
- Japan Fixed Income
- Global Fixed Income
- Asian Fixed Income
- Australian Equity
- Australian Fixed Income
- NZ Equity and Fixed Income
- U.S. Investment
For important information on Investment Advisory Agreements and Discretionary Investment Agreements, visit http://en.nikkoam.com/risk-information.
Nikko AM TCFD 2019 Report
This report outlines Nikko AM’s response to the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD).
We firmly believe that activities addressing ESG, including those to address climate change, should not be separated from investment activities. It is our fiduciary duty to evaluate climate change risks and opportunities when making investment decisions on behalf of our clients.
This report covers January to December 2019 and is updated annually. The transparency we are showing through this report is one way we demonstrate our commitment to developing our internal capacity to address these issues and promoting greater collaboration within and beyond the investment community.