Our management engages in constructive dialogue with dedicated personnel on different investment cases, and reviews and evaluates the performance and management progress in climate-related risks. Our management recognizes that creating long-term value for our shareholders requires the consideration of ESG including climate change vulnerability.
The management has ultimate responsibility for oversight of our activities for ESG together with climate-related risk management. Our dedicated personnel assist the management in overseeing climate-related risk assessment and management activities.
ESG is included as a section in our internal research material before investments are made. The information is used by the management to judge the financial and ESG status and progress of investments. Our dedicated personnel provide a qualitative opinion on the investment case’s ESG risks (e.g., climate-related risks) including related controversies. Climate change vulnerability is therefore considered an additional factor in determining the long-term opportunities and risks of a potential investment if it is applicable to the investment case.
We have staff dedicated to ESG analysis. Our investment process is structured to identify ESG risks and opportunities alongside traditional measures within our active investment strategies. In addition, our analyst team collaborates with each other with their professional knowledge and experience from both financial and ESG perspectives during investment research, which is the basis for investment decision-making.
We emphasize the management of conventional risks and emerging risks, such as climate-related risks of our investment cases, in which our management is the highest-level supervisory unit for implementing risk management and internal control and continues to strengthen the management mechanisms for business continuity.
To facilitate our society becoming more competitive and develop towards a green economy in an orderly manner, we invest in companies and industries that support the creation of low carbon transformation opportunities or facilitate the adaptation to climate change through products and services. For example, in equity investment, we utilize our position as an investor to influence and engage with investee companies, so that companies will take actions in response to tackle climate change and strengthen their climate resilience in their business operation.