In September 2012 Daiwa SB Investments became a signatory to the UN-backed Principles for Responsible Investment (PRI).
1. What are the United Nations Principles for Responsible Investment (UNPRI)?
The UNPRI are principles related to investment based on the following six commitments which were established in 2006 through their proposal by then U.N. Secretary-General Kofi Annan, and the cooperation of the United Nations Environment Programme Finance Initiative (UNEP FI) and the United Nations Global Compact, both of which are United Nations affiliate organisations. The Principles do not carry legal binding power, but by voluntarily signing them, institutional investors, particularly overseas, with a strong awareness of environmental,social, and governance (ESG) issues make clear their propensity to give consideration to ESG issues in relation to their investment process.
Six Commitments of the UNPRI
2. Our Company’s Stance on the UNPRI
(1) Now, more than ever, ESG factors can exert influence over asset value including enterprise value and stock price.
In light of these circumstances, our company will plan to strengthen analysis and evaluation related to risk assessment concerning ESG within the risk assessment our company has implemented through qualitative evaluation thus far, and by signing the Principles, clarify our stance.
(2) Our company, with the goal of fulfilling our “duty to pursue, to the greatest extent possible, the maximum profit over the long term for our beneficiaries,” in other words, to further improve our investment performance, will perform the aforementioned activities from the perspective of further strengthening the investment methods we have pursued thus far.
3. Our Company’s Initiatives Related to ESG Activities
Our endorsement of these Principles acts as an opportunity to establish an ESG Committee and necessary regulations with a view to strengthening our analysis and evaluation of ESG issues. Our company’s ESG Committee will be the centre of our initiatives, and will actively promote our company’s ESG activities.