68 slides from Sumitomo Mitsui Financial's sustainability presentation, May 28, 2025
Slide 1: Efforts for Social Value Creation in SMBC Group
Efforts for Social Value Creation in SMBC Group May 28, 2025 Copyright © 2025 Sumitomo Mitsui Financial Group. All Rights Reserved.
Slide 2: Forward-looking statements disclaimer
• This document contains “forward-looking statements” that are based on the Group's views, judgments or current expectations regarding the Group's financial condition and results of operations. In many cases, these statements include, but are not limited to, those that use the terms “anticipate,” “p
Slide 3: Agenda
Agenda Ⅰ SMBC Group’s Social////////////////////////////// Value Creation 4 DE&I/Human Rights 30 The Society SMBC Group aims to achieve 5 • Human capital management of SMBC Group Expansion of the circle of initiatives for • Supporting customers’ human capital management Social Value Creation 6 • Est
Slide 4: SMBC Group's Social Value Creation
SMBC Group’s Social Value Creation
Slide 5: The Society SMBC Group aims to achieve: Era of Fulfilled Growth
The Society SMBC Group aims to achieve Even amidst rapid changes in the external environment and an uncertain future, the direction in which SMBC Group is heading remains steadfast. We continue to aim for achieving “Fulfilled Growth” through creating social value and pursuing economic value. Era of
Slide 6: Expansion of the circle of initiatives for Social Value Creation
Expansion of the circle of initiatives for Social Value Creation Expanding the circle of initiatives for social value creation by leading initiatives, collaborating with customers and partners, communicating these achievements as impact to society and fostering empathy. SMBC Group Partners Society C
Slide 7: Circle of initiatives for Social Value Creation－Full participation
Circle of initiatives for Social Value SMBC Partners Society Creation－Full participation Group Support voluntary initiatives of employees and expand opportunities for participation in creating social value. Support employee initiatives Expand opportunities for participation ⚫ Expand support to sprea
Slide 8: Circle of Initiatives for Social Value Creation
Circle of Initiatives for SMBC Partners Society Social Value Creation Group Expanding initiatives through collaboration with partners and a system that allocates "money" to solving social issues. Collaboration with partners Fund allocation to solve social issues Industry-academia collaboration Makin
Slide 9: Impact-based information disclosure
Impact-based SMBC Partners Society information disclosure Group Published Impact Report 2024 as the first Japanese bank by staying ahead of the change of “metrics” for evaluating companies. Plan to publish the 2025 edition this year. Overview of Impact Report 2024 Purpose of publishing the report ⚫
Slide 10: Social Value Creation and corporate value of SMBC Group
Social Value Creation and corporate value of SMBC Group Creating social value contributes to enhance corporate value of SMBC Group through expansion of our business base. Activity Results Impact on corporate value Upgrade/expansion of existing business Efforts for Bottom-line growth social value Cre
Slide 11: (Column) Social Value Creation by the numbers
(Column) Social Value Creation by the numbers Employees involved in social value creation Work satisfaction Efforts against climate change Shaka-kachi AWARD Shaka-kachi DAY Application Engagement Score Sustainable Finance Transition Finance Participation 490 cases 74 JPY 34 tn 46 deals 257 branches
Slide 12: Efforts for Social Value Creation
Efforts for Social Value Creation
Slide 13: Priority issues (Materiality)
Priority issues (Materiality) To achieve “Fulfilled Growth,” SMBC Group is actively addressing five priority issues through our distinctive approach. SMBC Group’s approach • Promoting environmental protection through an integrated approach to climate change, natural capital, and circular economy P.1
Slide 14: (Ref.) Progress on priority issues (Materiality)
(Ref.) Progress on priority issues (Materiality) KPI FY3/25 Results Sustainable finance Support transition to achieve a decarbonized society Environment JPY 50 tn JPY 34 tn Contribute to the conservation and (FY3/21-25) restoration of natural capital (FY3/21-30) Realize a workplace Engagement score
Slide 15: Integrated approach to environmental issues
Environment Integrated approach to environmental issues Climate change, natural capital, and circular economy are interconnected, and an integrated approach is essential. These efforts not only address environmental issues but also contribute to resolving and mitigating other social issues such as h
Slide 16: Understanding of the environment
Environment Understanding of the environment Decarbonization remains an urgent issue. It is crucial to adopt approaches aligned with the unique condition of each country and region to achieve decarbonization of the real economy. Understanding of the Environment ⚫ Decarbonization remaining an urgent
Slide 17: Our approach to climate change
Environment Our approach to climate change Maximize contributions to decarbonization of the real economy while maintaining appropriate control over climate-related risks. Contributing to decarbonization of the Maintaining appropriate control over real economy climate-related risks Implementing appro
Slide 18: Contributing to decarbonization of the real economy
Environment Contributing to decarbonization of the real economy Considering delays in the social implementation of new technologies and the context of specific regions and sectors, pragmatic approach to decarbonization is crucial. Pragmatic approaches toward Background decarbonization ⚫ Technologica
Slide 19: Risk-taking in new energies and new technologies
Environment Risk-taking in new energies and new technologies Contribute to the social implementation of new energies and new technologies through sound risk-taking. Approach toward social implementation Cases studies ⚫ Boldly taking on new risks as a ‘’first penguin’’ Project finance for CCS infrast
Slide 20: Transition finance: Case studies
Environment Transition finance: Case studies Leverage "Transition Finance Playbook" to engage in ongoing dialogues with clients and accumulate track records globally. Transition Finance Playbook May 2023 Cases studies in Asia Pacific ⚫ Showing SMBC Group's definition and criteria of transition Austr
Slide 21: Transition finance: Dialogue for further advancement
Environment Transition finance: Dialogue for further advancement Focus on engagements with customers and governments to address issues for further advancement. Transition Finance Scorebook Oct.2024 Call for action and recommendation ⚫ Publishing the Transition Finance Scorebook, which Support for co
Slide 22: Collaboration with stakeholders and diverse solutions
Environment Collaboration with stakeholders and diverse solutions Collaborate with partners and customers to provide diverse solutions for decarbonization of the real economy. Decarbonization solutions spread from “visualization” Co-creation of business ⚫ Agreement on succession and integration of S
Slide 23: (Ref.) Policy recommendation
Environment (Ref.) Policy recommendation Continue dialogue and policy recommendations with the industry and government, considering practical challenges in finance. Initiatives in Japan Initiatives for decarbonization in Asia ⚫ Continuing dialogue and recommendations with the ⚫ Recommendations on su
Slide 24: Sustainable finance
Environment Sustainable finance Steady progress towards the sustainable finance target of JPY 50 trillion. Amount of sustainable finance (cumulative) Finance examples (JPY tn) KPI 50 US India Single-year amount Sustainable link supply chain Blue Loans for water provision 34 finance for clothing comp
Slide 25: Circular economy / Natural capital
Environment Circular economy / Natural capital Amid growing importance of an integrated approach to the environment, SMBC Group leverages its strengths to create new edges in the areas of circular economy and natural capital. Realizing a circular economy Conservation and restoration of natural capit
Slide 26: Framework of climate-related risk management
Environment Framework of climate-related risk management Continue appropriate risk management based on the unique characteristics of each sector and from the viewpoint of policy, portfolio, and individual company/project level. ⚫ Acute risk (examples: typhoon, flooding, forest fires) Physical risks
Slide 27: (Ref.) Progress in setting mid-term targets by sector
Environment (Ref.) Progress in setting mid-term targets by sector Completed setting medium-term targets for 70% of Scope3. Conduct dialogues with clients in chemical sector and support their initiatives. Breakdown*1 of Scope 3 category 15 Approaches to the Chemical Sector ⚫ Breakdown ⚫ Setting unifo
Slide 28: Strengthen sectoral analysis
Environment Strengthen sectoral analysis Maintain appropriate control based on understanding of climate-related risks and keys to achieving decarbonization. Transition Sector Keys to achieving decarbonization Awareness of climate-related risks risks • It is necessary to respond to increases in deman
Slide 29: Operational GHG emissions reduction (Scope1, 2)
Environment Operational GHG emissions reduction (Scope1, 2) Steadily promoting initiatives to achieve net zero by 2030. Newly set a target for 100% conversion of domestic company vehicles to environmentally friendly car. Results/Target Core measures (kt-CO2e) Scope1 Scope2 SMBC Forest (Isehara City,
Slide 30: Human capital management of SMBC Group
DE&I / Human Rights Human capital management of SMBC Group SMBC Talent Policy Realize the workplace and teams where diverse professional talents aim high and feel rewarding Human capital investment +8% YoY Manage HR portfolio Promote employee growth Maximize team performance and well-being Mar.25 Ta
Slide 31: Supporting customers' human capital management
DE&I / Human Rights Supporting customers’ human capital management As the importance of human capital management increases for companies and attention shifts toward employee well-being, we leverage our expertise in wholesale and retail business to support our clients' initiatives. SMBC Group’s suppo
Slide 32: Establishing system aimed at respecting human rights
DE&I / Human Rights Establishing system aimed at respecting human rights Constant efforts to enhance our system for respecting human rights throughout the supply chain. SMBC Group’s human rights respect system Enhancement of the system Policy update Renewal Guiding Principles SMBC Group’s organizati
Slide 33: Initiatives in Japan
Poverty & Inequality Initiatives in Japan To break a negative cycle of poverty and Inequality for the next generation, we provide children with opportunities for education and experience. Providing children with opportunities for education and trying new things Creating spaces and experiential oppor
Slide 34: Initiatives overseas
Poverty & Inequality Initiatives overseas Supporting the social independence of the underprivileged through our initiatives of financial inclusion. Initiatives to support social independence Affordable housing ⚫ Providing microfinance to women in rural areas with limited ⚫ SMHFC *2, a subsidiary of
Slide 35: Reduction of people's various anxieties
Declining Birthrate & Aging Population Reduction of people’s various anxieties Reducing people’s various anxieties in conjunction with the progression of a declining birthrate and aging population. Life Shift Service Digitalization of Financial Wealth Building Support (service for the 100-year life)
Slide 36: (Ref.) Financial and economic education
Declining Birthrate & Aging Population (Ref.) Financial and economic education Provide a variety of financial and economic education targeted at multiple generations by utilizing the knowledge and expertise of each SMBC group company. SMBC Group’s financial and economic education Enhance the content
Slide 37: Japan's Regrowth: Maximum contribution as a financial institution
Japan’s Regrowth Maximum contribution as a financial institution The mission of SMBC Group, as a megabank rooted in Japan, is to devote all its energy to contributing to Japan’s regrowth. Overview of domestic wholesale business Support for startups Large Integrated approach Overseas transaction with
Slide 38: Initiatives beyond the boundaries of financial institution
Japan’s Regrowth Initiatives beyond the boundaries of financial institution Boost Japan’s return to growth by resolutely taking on the challenge of new projects beyond the scope of a financial institution. Resolving issues in industries Initiatives for supporting challengers Finance SportsTech Shaka
Slide 39: Governance
Governance
Slide 40: Improvement of governance (board diversity)
Improvement of governance (board diversity) Composition* Internal Directors (non-executive) Outside Directors 3 directors 7 directors • Makoto Takashima • Sonosuke Kadonaga • Toshihiro Isshiki • Jun Sawada • Honami Matsugasaki • Yoriko Goto # of the • Isao Teshirogi Internal Directors (executive) Bo
Slide 41: (Ref.) Enhancement of our sustainability management system
(Ref.) Enhancement of our sustainability management system Continuously enhancing both execution and supervision. This fiscal year, established a dedicated organization focused on sustainability-driven advisory and solution development. Sustainability management system Expertise of Sustainability Co
Slide 42: (Ref.) Skills matrix of the board
(Ref.) Skills matrix of the board* Appointed directors using a skills matrix that summarizes the knowledge and experience expected by the Nomination Committee. Also, explicitly included sustainability as one of the standards for the selection of outside director candidates. Internal Director Interna
Slide 43: Discussions on supervision related to sustainability
Discussions on supervision related to sustainability Promptly reflect professional and objective discussions on supervision to execution measures. Major discussions Examples of measures implemented ⚫ Promote initiatives for creating social value ⚫ Support for employee efforts aimed at full participa
Slide 44: (Ref.) Enhancing capabilities of executives and employees
(Ref.) Enhancing capabilities of executives and employees Continuously enhancing expertise and fostering awareness to encourage initiatives for creating social value. Enhancing expertise of executives Fostering employees’ awareness Sustainability Study Session for the Management Sharing effort examp
Slide 45: Opinion on the Shareholder Proposal requesting partial amendment to the Articles of Incorporation
Opinion on the Shareholder Proposal requesting partial amendment to the Articles of Incorporation
Slide 46: Opinion of SMFG's board of directors on the shareholder proposal
Opinion of SMFG’s board of directors on the shareholder proposal requesting partial amendment to the Articles of Incorporation SMFG’s Board of Directors has resolved to oppose the Shareholder Proposal for the following reasons; 1 Current initiatives/disclosures • The Audit Committee conducts audits
Slide 47: Concluding remarks
Concluding remarks
Slide 48: Achieving growth through Social Value Creation
Achieving growth through Social Value Creation Copyright © 2025 Sumitomo Mitsui Financial Group. All Rights Reserved. 48
Slide 49: Appendix
Appendix
Slide 50: Reduction of equity holdings
Reduction of equity holdings Achieved a reduction of JPY 185 bn in FY3/25, including a few large sales. Negotiations with clients will continue to aim for reductions exceeding the annualized pace of JPY 120 bn. (JPY tn) Book value of domestic listed stock*1 Reduction Market value of equity holdings*
Slide 51: Key targets and actions for addressing climate change
Key targets and actions for addressing climate change Current Medium-term Management Plan 2021 2022 2023 2024 2025 2030 2040 2050 Introduction of Introduction of Introduction of Net zero / Scope1,2 2030 Mid-term goals renewable energy to renewable energy to renewable 100% Net Zero -40% (Operational
Slide 52: Overview of Net Zero Transition Plan
Overview of Net Zero Transition Plan Components Items Major Contents • Revising the SMBC Group Statement on Sustainability and the Group Environment Policy Corporate policy on climate change and the Foundations • Achieve net zero GHG emissions for Scope 1 and 2 by 2030 approach for initiatives • Ach
Slide 53: Portfolio GHG emissions
Portfolio GHG emissions The great majority of GHG emissions is Scope 3, Category 15 (financed emissions). GHG emissions (FY3/24) Details by sector in Scope 3 category 15 (FE) (Mt-CO2e) Sector Scope1＋2 Scope3 Total*2 Scope1 14 kt-CO2e*1 Power 174.0 62.8 236.8 Oil & Gas 313.6 48.7 362.3 Coal 0.1 0.2 0
Slide 54: Detail of portfolio GHG emissions reduction targets
Detail of portfolio GHG emissions reduction targets Set medium-term targets to six sectors, steadily promoting initiatives aimed at reducing emissions. Scope of Mid-term target FY3/24 Baseline Sector Metric Emissions for FY3/31 Results (Base year) vs. baseline Emission 332 Power Scope1 intensity 138
Slide 55: Scope of portfolio GHG emissions reduction target
Scope of portfolio GHG emissions reduction target Set emission reduction targets in six sectors aiming at covering key items in the value chains. Businesses Value chain Sector GHG emissions by value chain* in scope coverage Power generation Construction and operations Power generation Transmission a
Slide 56: GHG emissions for securities and asset management
GHG emissions for securities and asset management SMBC Nikko Securities and Sumitomo Mitsui DS Asset Management Company (SMDAM) calculate GHG emissions in line with their businesses. SMBC Nikko Securities: Facilitated Emissions SMDAM: Reduction target and results ⚫ Calculated GHG emissions in the po
Slide 57: Policies for specific businesses and sectors
Policies for specific businesses and sectors To appropriately identify and manage environmental and social risks, SMFG has established "Policies for specific businesses and sectors" and clarified sectors that require special attention when providing support. Cross-sectoral and cross-business policie
Slide 58: Environmental and social due diligence
Environmental and social due diligence Evaluate environmental and social risks in both corporate and project level and enhance credit assessment and customer engagements. Corporate finance Project related finance • Evaluate the environmental and social impacts of large-scale • Regularly assess envir
Slide 59: Assessment of transition plan
Assessment of transition plan In the process of environmental and social risks evaluation, assess transition plan of obligors in sectors with high climate risk. Assessment methods related to transition plans Progress of assessment Target sectors ⚫ Evaluated approximately 300 companies above a determ
Slide 60: Risk control by sector (Power)
Risk control by sector (Power) Support the transition to renewable and low-carbon energy sources to contribute to increasing electricity demand and stable supply. Transition Keys to achieving decarbonization Climate-related risks risks • It is necessary to respond to increases in demand for electric
Slide 61: Risk control by sector (Oil and gas)
Risk control by sector (Oil and gas) Contribute to stable supply of energy and customers' business transformation through support for natural gas and new energy sources while paying attention to environmental and social risks. Transition Keys to achieving decarbonization Climate-related risks risks
Slide 62: Risk control by sector (Coal)
Risk control by sector (Coal) Provide support for clients' systematic business transformation. Transition Keys to achieving decarbonization Climate-related risks risks • Due to high levels of emissions, a systematic shift to alternative businesses is • Increase costs due to emission regulations and
Slide 63: Risk control by sector (Automobile)
Risk control by sector (Automobile) Support the expansion of environmentally friendly vehicles within the entire industry, including OEMs and players in the supply chain. Transition Keys to achieving decarbonization Climate-related risks risks • It is important to lower fuel consumption and decarbon
Slide 64: Risk control by sector (Steel)
Risk control by sector (Steel) Contribute to a stable supply of steel through recycling by using electric furnaces and supporting decarbonization in accordance with production processes. Transition Keys to achieving decarbonization Climate-related risks risks • It depends largely on technological in
Slide 65: Risk control by sector (Real estate)
Risk control by sector (Real estate) Promote sustainable finance for green buildings and other structures with high environmental performance. Transition Keys to achieving decarbonization Climate-related risks risks • As emissions are mainly due to property use (especially electric power), it is • I
Slide 66: Scenario analysis for climate change
Scenario analysis for climate change Make certain assumptions regarding the disasters considered and the subject of analysis, etc., and conduct scenario analysis. Physical risks Transition risks Chronic physical risks Risk Acute physical risks Policy changes (Decreased productivity due to rising eve
Slide 67: Various solutions across SMBC Group
Various solutions across SMBC Group Major solutions for decarbonization Risk-taking in new energies and new technologies Banking • Project finance Hydrogen fund • Sustainable finance, etc. ⚫ Participating in the investment and management of Trust banking • Green ABL Trust Japan Hydrogen Fund as SMBC
Slide 68: Links
Links Date of URL QR Code issue https://www.smfg.co.jp/english/investor/library/annual/fy2023e_f01_pdf/fy2 １ Annual Report Jul. 2024 023e_f01_00.pdf https://www.smfg.co.jp/english/sustainability/report/pdf/sustainability_repor ２ Sustainability Report Aug. 2024 t_e_2024.pdf Sustainability https://www