Bloomberg announced that Sumitomo Mitsui Trust Asset Management Co., Ltd. (“Sumitomo Mitsui Trust Asset Management”) has adopted Bloomberg’s SFDR data solution to help it adhere to the Sustainable Finance Disclosure Regulation (SFDR). SFDR is a European Union regulation which requires investment firms to disclose information regarding how they account for environmental, social and governance (ESG) factors in their investment activities.

Sumitomo Mitsui Trust Asset Management is one of the largest asset management companies in Japan and Asia, managing JPY 86 trillion in AUM as of March 31, 2023, and is a signatory of both Japan’s Stewardship Code and the Principles for Responsible Investment (PRI). The company is actively pursuing initiatives to address ESG issues and as such is focused on meeting SFDR requirements.

“We have long been focused on ESG investments, and we are continually working to enhance our data disclosure to improve transparency. One of the deciding factors in choosing Bloomberg was that, through continuous dialogue, we were able to understand how their data service and support system work, including their ability to quickly enhance their services by keeping abreast of daily regulatory changes,” said Hiroyuki Horii, Senior Managing Executive Officer of Sumitomo Mitsui Trust Asset Management. “We particularly appreciate Bloomberg’s expertise in ESG regulations, and expect that the company will be able to provide appropriate data in response to changing regulatory developments in Europe. Bloomberg’s SFDR data solution provides wide coverage, especially of Japanese equities, and we intend to use the Principle Adverse Impact (PAI) data to comply with the SFDR while further enhancing our ESG investments and information disclosure, with the aim of continuously expanding our business.”

Compliance with the SFDR requires that investment firms disclose Principal Adverse Indicators (PAIs). To disclose these PAI indicators, Sumitomo Mitsui Trust Asset Management will use Bloomberg’s SFDR data solution, which generates PAI indicators in a manner that is compliant with SFDR requirements and utilizes Bloomberg’s company-reported ESG data covering over 15,000 companies globally. Bloomberg terminal subscribers can drill down to source documents to validate any given datapoint, enabling clear and confident SFDR reporting by client firms.

Sumitomo Mitsui Trust Asset Management will also make use of Bloomberg’s carbon emissions dataset, which takes company-reported data and estimates Scope 1, 2, and 3 emissions for over 100,000 companies.

“Bloomberg’s SFDR solution cuts through the complexity and delivers high-quality, comprehensive data to help clients truly understand the sustainability of their investments,” said Patricia Torres, Global Head of Sustainable Finance Solutions at Bloomberg. “We’re pleased to work with Sumitomo Mitsui Trust Asset Management and to support their ESG priorities with our comprehensive and unique data and solutions.”

“Regulatory requirements are constantly evolving, and it is crucial for companies to have a partner that enables them to quickly grasp and proactively respond to such evolutions. Our SFDR data solutions have helped a number of firms across the globe, including Sumitomo Mitsui Trust Asset Management, to navigate the complex regulatory landscape and turn challenges into competitive advantages,” said Norman Tweeboom, Japan Regional Head at Bloomberg.

Bloomberg’s SFDR data solutions are available through the Bloomberg Terminal and to Enterprise Data clients via Data License at data.Bloomberg.com. For more information, visit our website here.

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About Sumitomo Mitsui Trust Asset Management

Sumitomo Mitsui Trust Asset Management is one of the largest asset managers in Asia. As a responsible institutional investor, we have the philosophy of “Realizing opportunities today to ensure sustainable prosperity for tomorrow.” We actively engage in ESG (Environment, Social, Governance) activities from global perspective through constructive dialogue with companies and collaboration with international organizations. We will seek to shape an asset management for the new era and foster a truly prosperous and sustainable society for the sake of maximizing our clients’ long-term investment returns.

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