Participation in global initiatives & external evaluations

SRM has signed and participates in the following initiatives including signatory and participation by the Sumitomo Corporation Group.

・ UN Global Compact (UNGC)
・ Principles for Responsible Investment (PRI)
・ Principles for Financial Action Towards a Sustainable Society, Principles for Financial Action for the 21st Century (PFA21)
・ Task Force on Climate-related Financial Disclosures (TCFD)

Signatory to UNGC

The UNGC is a voluntary, global initiative supporting a global framework for sustainable growth by demonstrating creative, responsible leadership and acting as principled members of society. First proposed in 1999 by the then United Nations Secretary-General Kofi Annan at the Davos World Economic Forum and officially launched in 2000.
The Sumitomo Corporation Group became a signatory of the UNGC and the Sumitomo Corporation Group was registered as participants in March 2009. SRM has participated in this initiative as a member of the Sumitomo Corporation Group.

The Ten Principles of the UN Global Compact

  • 【Human rights】
    Principle 1：Businesses should support and respect the protection of internationally proclaimed human rights.
    Principle 2：Businesses should make sure that they are not complicit in human rights abuses.
  • 【Labor】
    Principle 3：Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
    Principle 4：Businesses should uphold the elimination of all forms of forced and compulsory labor.
    Principle 5：Businesses should uphold the effective abolition of child labor.
    Principle 6：Businesses should uphold the elimination of discrimination in respect of employment and occupation.
  • 【Environment】
    Principle 7：Businesses should support a precautionary approach to environmental challenges.
    Principle 8：Businesses should undertake initiatives to promote greater environmental responsibility.
    Principle 9：Businesses should encourage the development and diffusion of environmentally friendly technologies.
  • 【Anti-corruption】
    Principle 10：Businesses should work against corruption in all its forms, including extortion and bribery.

Please visit the UNGC website (Japanese version only) for more information.

Signatory to PRI

PRI is an international network of investor signatories working together to realize the six principles established for the finance sector in 2006 under the leadership of former United Nations Secretary-General, Kofi Annan. This initiative is promoted through the United Nations Environment Programme ("UNEP") and the United Nations Global Compact ("UNGC").
PRI encourages the incorporation of ESG issues into investment decision-making processes, with the goal of improving long-term investment performance and enhancing fiduciary duty.
SRM subscribes to the fundamental principles of PRI and became a signatory in January 2022.

The Six Principles for Responsible Investment

  1. We will incorporate ESG issues into investment analysis and decision-making processes.
  2. We will be active owners and incorporate ESG issues into our ownership policies and practices.
  3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  4. We will promote acceptance and implementation of the Principles within the investment industry.
  5. We will work together to enhance our effectiveness in implementing the Principles.
  6. We will each report on our activities and progress towards implementing the Principles.

Please visit the PRI website for more information.

Signatory to PFA21

PFA21 began when the Minister of Environment (MoE) and the Central Environment Council’s Expert Committee on Environment and Finance proposed a policy recommendation to expand the circle of commitment for environmental financial action. The principles were then established in October 2011 as a guideline for financial institutions seeking to fulfill their roles and responsibilities in shaping a sustainable society, with MoE taking on the secretariat role.

Signatories will implement initiatives based on the seven principles of PFA21, to the extent possible within their business context. The principles are intended to be a starting point for the like-minded to cooperate without being restricted to their specific industry, scale and geography.

The Seven Principles

  • 【Principle 1】　Basic posture
    Recognizing the responsibilities and roles that financial institutions themselves play for the formation of a sustainable society, we aim to create positive impacts on the environment, society and economy, and mitigate negative impacts. Take the initiative in practicing these efforts.
  • 【Principle 2】　Contribution to a sustainable global society
    We will lead the formation of a sustainable global society by developing and providing financial products and services that contribute to the creation and development of industries and businesses through innovation, toward steady and fair transitions in society.
  • 【Principle 3】　Contribution to the formation of sustainable communities
    We will support the solution of environmental, social and economic issues based on regional characteristics, and lead the formation of sustainable local communities by improving the inclusiveness and resilience of the region.
  • 【Principle 4】　Human resource development
    Recognize the importance of human capital in financial institutions, and develop human resources who can think for themselves and take action on environmental and social issues.
  • 【Principle 5】　Collaboration with various stakeholders
    Recognizing the importance of cooperation among various stakeholders, including financial institutions, in order to form a sustainable society, we not only participate in such efforts but also play an active role.
  • 【Principle 6】　Building a sustainable supply chain
    Actively tackle environmental issues such as global warming and biodiversity and social issues such as human rights, and build a sustainable supply chain through constructive engagement with business partners including investment and loan partners.
  • 【Principle 7】　Information disclosure
    Recognizing that activities to enhance the sustainability of society are management issues, we will disclose our efforts to a wide range of stakeholders and make constant improvements based on domestic and international trends and disclosure frameworks.

SRM agrees with the fundamental principles of PFA21 and became a signatory in December 2021.

Please visit the PFA website for more information.

Approval in TCFD

TCFD was launched by the Financial Stability Board (“FSB”) for the purpose of improving and increasing reporting of climate-related financial information.
TCFD views climate change as a serious risk to the global economy and encourages companies and organizations in its recommendations to understand and disclose four core elements regarding climate-related risks and opportunities: "Governance", "Strategy", "Metrics and Targets" and "Risk Management".

SRM declared its support for the TCFD recommendations in November 2021.
Please visit the TCFD website for more information.

Scenario analysis of SOSILA Logistics REIT
Scenario analysis of SC Realty Private REIT

GRESB evaluation

GRESB is an annual benchmarking assessment to measure ESG integration of real estate companies and funds, as well as the name of the organization that runs this assessment.GRESB was founded in 2009 by a group of major European pension funds that played leading roles in launching Principles for Responsible Investment (PRI).
Both REITs managed by SRM, SOSiLA Logistics REIT, Inc.(SLR) and SC Realty Private REIT, Inc. (SCRP) participated in the GRESB Real Estate Assessment, and obtained "5-stars" and "4-stars" respectively in the 2023 GRESB rating (in relative rating) along with acquiring the GRESB "Green Star" designation for three consecutive years by achieving high performance.

Acquisition of environmental certifications

SRM, SLR and SCRP are promote to acquire external certifications such as CASBEE (Comprehensive Assessment System for Built Environment Efficiency), DBJ Green Building Certification System, and BELS (Building-Housing Energy-efficiency Labeling System) for assets under management. Please refer to the following for the status of our acquired environmental ertifications.

the status of acquired environmental certifications(SLR)
the status of acquired environmental certifications(SCRP)