Medium-to long-term environmental targets
Background to establishing medium- to long-term environmental targets
The Group formulated its environmental policy in June 2017, explicitly stating its contributions to solving global environmental issues. In April 2020, as part of Our Vision within the SMFL Way, the Group declared its intention to become a company “Chosen for its commitment to SDGs,” and since then has been working on various initiatives.
In October 2020, the Japanese government declared its intention to achieve carbon neutrality by 2050 and has been promoting the decarbonization of society by encouraging companies to take action. The SMBC Group has announced its goal to make greenhouse gas emissions carbon neutral for its entire loan portfolio by 2050, and the Sumitomo Corporation Group has likewise declared a goal of carbon neutrality for all its business activities by 2050.
SMFL, in the meantime, established its medium- to longterm environmental targets in April 2022, with the intention of contributing to the sustainable growth of the Group by achieving those targets (Target3 reviewed in June 2023).
Medium- to long-term targets for reducing greenhouse gas emissions
Target 1: Net-zero greenhouse gas emissions by the Company
The Company (non-consolidated) will achieve net-zero greenhouse gas emissions (Scope 1 and Scope 2) in Japan by FY2023. For Scope 1, we will work to achieve net-zero by optimizing the number of Company vehicles we own and the form of their ownership. For Scope 2, we will, in addition to implementing measures such as reducing electricity consumption by consolidating offices at the head office, acquire non-fossil certificates created through solar power generation facilities owned by the Group and switching all power consumption to renewable energy.
Target 2: Net-zero greenhouse gas emissions by the Group
The Group (consolidated) will achieve net-zero greenhouse gas emissions (Scope 1 and Scope 2) by FY2025. We will involve our overseas offices, overseas subsidiaries, and Group companies in our efforts to achieve net-zero.
Renewable energy for the electricity used by the head office
In working toward our medium- to long-term environmental targets, in April 2022 we made a switch to renewable energy for the power consumption at Sumitomo Mitsui Bank East Tower, where our Tokyo Head Office is located. We achieved this through the utilization of a FIT non-fossil certificate with tracking from the Wakaba-ku Tomitacho Solar Power Plant owned by SMFLMP. Going forward, we will continue to utilize FIT non-fossil certificates with tracking for the solar power plants owned by the Group for the electricity used by all offices in Japan, including those of Group companies, in an effort to convert to renewable energy.
Target 3: ¥2 trillion in total contracts for sustainability businesses
To support customers’ efforts to promote decarbonization and contribute to solving societal issues such as climate change, the Group has set a target of ¥1 trillion in total contracts for sustainable businesses from FY2020 to FY2025 and ¥2 trillion in total contracts for sustainable businesses from FY2020 to FY2029 and is encouraging the promotion of related businesses.
Definition and scope of sustainability business
Due to customers’ growing interest in sustainability, the total contracts for sustainability businesses reached to about ¥330 billion over the three years up to FY2022.
Going forward, we will add environmentally certified real estate development and financing, sustainability-linked leases, etc. to the scope of sustainability-related transactions. We will continue working to develop products and services that contribute to solving issues related to sustainability as we aim to achieve our targets by expanding the scope of the Group’s sustainability businesses.
- Investment in and financing of renewable energy power generation businesses such as solar, wind, hydro and biomass
- SDGs Lease MIRAI 2030® (donation type)/(evaluation type) scheme, SDGs leases in collaboration with companies and government agencies
- Sustainability-linked leases and loans for ships utilizing the framework of the Poseidon Principles in which we participate
- Environmentally certified real estate development and financing
- Sustainability-linked leases and loans (beyond those for ships)
- SDGs rental through SMFL Rental
- Development and finance projects for environmentally certified properties
- Sustainability-linked leases (besides ships)
- SDGs rental by SMFL Rental Company, Limited.