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SUSTAINA JAPAN Inc.

Service Providers Framework 2020

You are in Strategy and Governance » Policy on ESG beliefs

Policy on ESG beliefs

SG 01. Responsible investment policy

01.1. Describe how your organisation’s philosophy incorporates environmental, social and governance factors, and the link to your business offerings.

We have been running the business to encourage ESG and sustainability of corporates on the basis of a philosophy, "Pass the better society onto the next generation." We aim to realize diffusion and establishment of ESG investment by developing and operating the first platform website "SUSTAINA.org" in Japan for sustainability evaluation.

01.2. Indicate whether you have policies that formalise the incorporation of your ESG beliefs in your business offerings.

01.3. Indicate the components/types of your internal policy and provide the URL and/or an attachment of the document/s if they are publicly available.

Policy components/types

Public availability

Public availability

Public availability

Public availability

01.4. Indicate how these are put into practice internally across the organisation.

          Based our internal ESG guideline, we define evaluation items for companies.
        

01.5. Additional information [OPTIONAL]


SG 02. Norms used to develop policies

02.1. Indicate what frameworks and guidelines you have used to develop your organisation’s policies. Tick all that apply.

          ISO26000
        

02.2. Additional information. [OPTIONAL]


SG 03. Policy offerings to clients

03.1. Indicate whether you offer standard, off the shelf, policies to clients as part of your product offerings, and/or whether you create tailored versions for individual clients.

Off the shelf
Tailored
Asset class-specific RI guidelines
Sector-specific RI guidelines
Screening/exclusions policy
Engagement policy
(Proxy) voting policy
RI guidelines set out within the Investment Policy Statement (IPS)
RI guidelines set out in a freestanding RI policy
Multi-year RI implementation project plan
Conflict of interest management policy
Stockbroker allocation policy
Securities lending policy
Other, please specify (1)
Other, please specify (2)
Other, please specify (3)
None of the above

03.3. Additional information. [OPTIONAL]


SG 04. ESG/RI in business offerings

04.1. Briefly describe how you include ESG/RI factors as part of your business offerings.

Business area

Research and Data Provision

How you include ESG/RI factors

We are providing the ESG ratings of more than 4,400 companies including all listed companies in Japan at our web-based platform, "SUSTAINA.org". These ratings are researched and evaluated by AI technology we developed.

Other, specify (1)

          Systems development and Marketing consultancy
        

How you include ESG/RI factors

We provide systems development services to the clients except for the target companies of ESG ratings. Additionally we provide marketing consulting services to the clients who deals social issues.

04.2. Indicate the roles in your organisation, and indicate for each whether they have oversight and/or implementation responsibilities for ESG/RI within the organisation.

Roles present in your organisation
Oversight/accountability for ESG/RI
Implementation of ESG/RI
Board
Directors
Chief Executive Officer (CEO), Chief Financial Officer (CFO)
Chief Operating Officer (COO), Chief Information Officer (CIO)
Other chief-level staff

Please specify

          CTO(Chief Technical Officer)
        
Other heads of department
Dedicated ESG/RI staff
Other role, specify (1)
Other role, specify (2)
Other role, specify (3)
None of the above

04.3. Indicate how you ensure ESG/RI expertise for the roles where there are RI oversight/accountability or implementation responsibilities.

          We also give explanation and training regarding ESG to outsourcing contractors so as to deepen their understanding about ESG.
        

04.4. Indicate whether your organisation has any ESG/RI linked incentives for its employees.

04.5. Describe the ESG/RI linked incentives.

We annually conduct a test to check the understanding about ESG/RI of our employees. The result would affect the assessment for salary.

04.7. Additional information [OPTIONAL]


SG 05. Outsourcing of services

05.1. Indicate whether you outsource some of your services. Report percentage of services outsourced as percentage for that specific business area.

Business area
          Systems development
        

05.2. For each business area, describe what components you outsource to other organisations.

In the field of systems development, there are times when we collaborate with the external partners or do outsourcing.

05.3. For each business area, describe how you ensure the organisation implementing your outsourced services adheres to your beliefs and policies on ESG/RI.

When we select an organisasion for our cooperative partners or outsourcing partners, we dialogue with the representative of the organisation to establish engagement. In the dialogue, we communicate our beliefs and policies to the potential partner and we comfirm if the organisation has adequate consciousness and efforts toward ESG issues.


SG 06. Providing training/education

06.1. Indicate whether you provide training/educational services on ESG/RI. Tick all that apply.

06.4. Additional information. [OPTIONAL]


SG 07. Applying, advancing and promoting the PRI principles

07.1. Describe how your organisation applies, advances and promotes the PRI Principles.

We have been developing and operating the only web-based platform in Japan “SUSTAINA.org” for providing information concerning the sustainability evaluation of companies.

This product evaluates the sustainability of approximately 4,400 representative companies of Japan and publishes the result of evaluations.

We effort to provide many useful information for spreading the awareness of ESG among institutional and private investors or the diffusion and the establishment of ESG investment on the stock market.

07.2. Highlight whether there are any ways that your organisation would like to engage further with the PRI. [OPTIONAL]


SG 08. Actions taken to promote responsible investment

08.1. Indicate which of the following actions your organisation has taken to promote responsible investments during the reporting year, independently of collaborative initiatives.

08.2. Additional information. [OPTIONAL]


SG 09. Long term trends

09.1. Indicate which of the following long-term trends are addressed in your product outputs.

09.2. Explain how this long-term trend affects your product outputs.

We incorporate the approaches of target companies towards the climate changes as our evaluation items. 

09.2. Explain how this long-term trend affects your product outputs.

We incorporate the approaches of target companies towards the technology development and the safety as our evaluation items.

          Frequent occurrence of Japanese corporate scandals
        

09.2. Explain how this long-term trend affects your product outputs.

In case that the target company causes any scandals, we can immediately reflect it to the rating and bring down the grading at "SUSTAINA.org" we operate.


SG 10. Interaction with asset owners (Not Applicable)


SG 11. Aligning approach with investor goals

11.1. Describe how you typically align your organisation’s philosophy and approach to ESG/RI with your investor clients’ goals.

The ESG evaluation and the grading, which we provide based on our philosophy may be helpful for investors to discover the continuous growing companies or the companies with risks for sociality, when they select an investment destination. This will lead to maximize the return on the investment as the objective of investors. Additionally we believe it would be useful for accelaration of companies activities for susutainability.

11.2. Additional information. [OPTIONAL]


SG 12. ESG recommendations not aligned with investor goals

12.1. Describe what steps you take, if any, when your ESG recommendations are not in line with your investor clients’ goals.

Investors can incorporate ESG factors to investment behaviors through the platform for company evaluation which we develop and operate. That would be helpful to gain profits from a long-term perspective.

12.2. Additional information. [OPTIONAL]


SG 13. Seeking feedback from clients

13.1. Indicate whether you seek feedback from clients on your RI/ESG services and product offerings

13.2. Describe how you use this feedback in your RI/ESG services and product offerings.

Taking advantage of feedback from our clients, we make functional additions and improve usability on the “SUSTAINA.org” we develop and operate.


SG 14. Managing conflicts of interest

14.1. Indicate whether your organisation has a policy for managing potential conflicts of interest.

14.2. Describe how you manage potential conflicts of interest.

We believe we should stand at fair and neutral position to gain credibility of society. For this reason, we make it a principle not to give any advice and consultation to the target companies for evaluation and we manage it thoroughly.

14.3. Describe how you ensure that company employees do not derive any personal gain from the use of information collected during your work process.

We clearly defined confidentiality agreement with our employees and outsourcing partners, so that they never personally use the undisclosed information they know on working. We never make hiring or outsourcing agreement with a job applicant or a vendor who disagrees with the contract for confidentiality.

14.4. Additional information. [OPTIONAL]


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