Nikko Asset Management (Nikko AM) has released its 2019 Sustainability Report, showcasing the company's ESG commitments along with its progressive philosophy, goals, and the internal and external committees and standards that the firm follows and shapes.
One key aspect of the report is Nikko AM's stance on its responsibility as an investment manager and fiduciary that contributes to a sustainable society, considering ESG as a part of long-term investment strategies.
Nikko AM launched Japan's first SRI fund in 1999, and for past two decades has made a concerted effort to link ESG factors with excess returns. The report features how each of the company's diverse investment teams around the world integrate ESG into the asset class they manage.
Nikko AM president and co-CEO Hideo Abe explained: "The pursuit of value for our clients and stakeholders mean chosing investees that can produce sustained returns, and then consistently engaging them in two main ways: responsible proxy voting and disclosing those votes, and engagement on sustainability issues that matter to our clients and society."
The report describes how the Nikko AM board oversees all governance decisions, including management governance, voting rights governance and fund governance.
The other key aspect of the report is the ESG initiatives that Nikko AM is engaging in with its own staff and resources, using the UN's Sustainable Development Goals as guidance, and presenting the milestones achieved. The particular focus is on diversity and inclusion (D&I), reducing inequalities and environment and climate.