Global Impact
Investment Fund
(Climate Change)
Resona Asset Management’s purpose and intention for its global impact investment (climate change)
Resona Asset Management’s purpose is to “ensure a prosperous and happy life for future generations as well as our customers.” We strive to not only help our investees operate sustainably but also believe that contributing to the sustainability of society and the environment, both of which serve as foundations for their corporate activities, will position us to better protect the assets our customers entrust to us. These endeavors are, of course, also intended to support sustainability for all customers.
The Global Impact Investment Fund (climate change) (hereinafter the “Fund”) has defined its intention as “achieving a sustainable world where climate change and its effects do not pose a threat to anybody’s life or health.” Climate change constitutes the most important issue in terms of maintaining social sustainability. Accordingly, addressing this problem is integral to the realization of abundance and happiness for future generations. We will therefore serve, over the long term, as a running partner for our investees striving to address climate change. In this way, we will realize our purpose.
Our Theory of Change
The Fund has classified solutions to the climate change-related issues into eight categories. Our Theory of Change thus informs our approach to these solutions, based on the assessment of each solution category in light of its importance, timeframe and interactions.
Resona’s impact investment feature
Acquiring return through long-term, selective investment
Although there are many social issues that call for solutions, most of them are inherently hard to be resolved in the short term, constituting serious, complex and structural problems. Moreover, only a handful of entities are equipped with abilities to provide effective solutions. These circumstances, in turn, make it difficult to make immediate improvement and mitigate the seriousness of these issues.
On the other hand, innovation achieved by business corporations through technological breakthroughs or other creative activities is becoming the subject of growing public expectations. A corporation that overcomes barriers to the resolution of a given issue and delivers effective solutions would be better positioned to meet abundant business opportunities as it stands out in the market, with its corporate value thus growing sustainably.
Taking a strictly selective approach to screen investee candidates from among excellent corporations like the one exemplified above, the Fund assists them in their efforts to resolve social issues through impact investment. At the same time, we are confident that we will be able to acquire robust returns over the long term as a result of investees’ business growth.
Assisting investees in their corporate activities through dialogue and engagement
Serving as a long-term partner for corporations striving to resolve social issues with noble intentions The Fund has defined its basic stance to dialogue and engagement as“ serving, over the long-term, as a running partner for corporations striving to resolve social issues with noble intentions.” Based on this definition, we strive to embody the three points described below. Through the practice of this stance, we aim to maintain constructive dialogue with investee corporations so that we are recognized as their partner pursuing the common goals, instead of being on differing sides from them as an investor.
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1. Shared intention
- Explain and help them understand concepts of the Fund and its future vision
- Develop a shared understanding of social issues that could be resolved by businesses
- Iron out differences and, together, establish future targets to be achieved via business activities
2. Long-term, continuous holdings
- Maintain the long-term holding of equities in corporations seeking to resolve social issues with noble intentions in support of their management approach
- Steadfastly uphold our investment philosophy focused on empowering investees to create corporate value via impact investment
3. Constructive dialogue addressing specific topics
- Visualize roadmaps toward the resolution of social issues and periodically monitor progress vis-à-vis targeted results
- Develop a shared understanding regarding issues that must be overcome to achieve targets and assist them in the improvement and upgrading of their strategies
Visualize the value of investment through impact measurement and reporting
In the course of impact investment, the Fund not only aims to acquire robust return but also considers making a positive impact its important objective. Accordingly, we place great emphasis on periodically assessing what impact our investees have made and measuring the magnitude of such impact. Based on the results of this measurement, we provide our customers with reports on investee status so that they can clearly see the impact of their investment.
When conducting impact measurement, we set quantitative indicators designed to determine the degree of achievement of investment goals and the status of issues we aim to resolve. In addition, we carry out qualitative assessments, such as examining actual cases of investee initiatives, as part of periodic assessments.
We will continuously strive to help our customers clearly understand how their investment contributes to the betterment of society, to this end robustly updating them about the status of our investees and their business activities supported by customer funds.
Quantitative summary of impacts created by investees in FY 2021
| Volume of GHG emissions reduced via investees’ contributions | 33,750,000 t-CO2e |
|---|---|
| Volume of water resource consumption reduced | 34 billion liters |
| Improvement in farmers’ profit | USD 670 million* |
| Value of the disaster-prevention effect realized by and the improved product ivity of construction work | USD 4.10 billion* |
Our initiatives in the fund received the Minister of the Environment Award for the best initiatives of the FY 2022 in the Principles for Financial Action for the 21st Century.
https://pfa21.jp/activity/bestaward/bestaward2022/sougou_resona
(only available in Japanese)
To learn more about the fund, see the impact report.
Click here or the Impact Report of the Japanese Stock Impact Investment Fund (only available in Japanese).
