The Rokinren Bank SRI (Socially Responsible Investment) Principles
Established April 1, 2010
The Rokinren Bank (hereinafter referred to as “the Bank”) places importance on corporate social responsibility in its management, with its management policy stating that the Bank “will contribute to realizing a society where people can coexist in happiness,” upheld in the “Rokinren Bank Philosophy.” The Bank believes that implementing this management policy also requires due consideration of social awareness in its investment and lending activities, and that it is also the Bank’s social responsibility to do so.
In light of this policy and as a financial institution aiming to create a sustainable society, the Bank, in addition to financial analysis, carries out the following initiatives in consideration of environmental, social and corporate governance-related issues (hereinafter referred to as “ESG issues”) when deciding on making investments or loans.
1. The Bank will incorporate ESG issues as much as possible into the analysis and decision-making processes for investments and loans.
Not only does the Bank take economic factors including financial indicators into consideration, it also takes into account corporate social responsibility, for example environment-related initiatives, compliance, consideration for employees, and contributions to the local community when making investment and lending decisions.
The Bank uses ESG parameters to evaluate companies.
2. The Bank, when exercising its shareholder voting rights, takes ESG issues into consideration.
One important pillar of socially responsible investment (SRI) is to encourage social consideration on the part of company management by taking shareholder action so that companies can fulfill their social responsibilities. Accordingly, the Bank takes ESG issues into consideration when exercising our shareholder voting rights.
3. The Bank will place importance on appropriate and adequate disclosure on ESG issues by the entities in which it invests or to which it makes loans.
Companies have a duty to explain the overall impact of their decisions or actions on society. Information disclosure not only heightens corporate transparency but also serves as a starting point for mutual communication. Accordingly, the Bank places importance on “appropriate and adequate disclosure” as key elements for “a company that coexists with society.”
4. The Bank will deepen its understanding of the social awareness it expects from the entities in which it invests or to which it makes loans and is also sincere in its own initiatives related to ESG issues.
The Bank’s management policy is “honest management emphasizing corporate social responsibility (CSR),” and the SRI Principles are the institutionalised system for investing and lending under CSR management. Accordingly, as an institution with the SRI Principles, the Bank also remains strongly conscious of its own social awareness and endeavor to correct deficiencies in this respect.
5. The Bank will manage its activities and progress toward implementing the SRI Principles in an appropriate manner.
To fulfill its own “duty to explain” and “transparency obligations,” which are important elements for the evaluation of social awareness, the Bank discloses the SRI Principles and report the status of its investment management under the SRI Principles regularly to its management executives.
In our investments based on the "Rokinren Bank SRI Principles," as a financial institution, the Rokinren Bank practises risk management (position limits and risk-limited management, unrealised gain/loss monitoring, etc.), which may result in altering our investment policies in accordance with market trends, regardless of whether the investment stocks are based on ESG factors.