csr report 2015 - smfg · 2016-01-12 · sumitomo mitsui financial group 3 csr report 2015 contents...

CSR REPORT 2015

1 CSR Report 2015Sumitomo Mitsui Financial Group

Management Environment Next Generation Community Management Base

Contents 1Contents/Companyprofile 2Editorialpolicy/CSRcommunicationtoolsManagement 3CommitmentfromtheTop 5CSRatSMFG 5Basicviews 6IntegraldevelopmentofCSRandbusinessactivities 6SupportforinitiativesinJapanandoverseasand CSRguidelinesusedasreferences 6CSR:InourDNAfor400years 7Actionsonvariousprinciples 8CSRmanagement 8CSRtrainingtailoredtoemployeegrades 9StakeholderEngagement 9TheSMFGGroup’scontributiontothesustainable developmentofsocietythroughitsstakeholders 9Relationshipwithourfourmajorgroupsof stakeholders 9PDCAcycleinabidtoresolvepriorityissues10PriorityIssues(Materiality)thatSMFGshouldaddress 10PriorityissuesthatSMFGshouldaddress 11Identifyingtheissues 12Fiscal2014initiatives

13Reportaboutthreepriorityissues15Environment 16Overviewoffiscal2014activitiesandissues 16Promotionofenvironmentalmanagementintegrated withbusiness 17Reducingenvironmentalimpact 18Managingenvironmentalrisks 18Promotionofenvironmentalbusinesses 21Environment-relatedsocialcontributionactivities

22NextGeneration 23Overviewoffiscal2014activitiesandissues 23Supportfornextgenerationassetinheritanceand businesssuccession 24Contributingasafinancialinstitutiontoemerging countries 25Contributiontoraisingtheleveloffinancialliteracy 26GlobalHRdevelopment 26Work-lifebalanceandworkplacewithdiversity

27Community 28Overviewoffiscal2014activitiesandissues 28ReconstructionfortheGreatEastJapanEarthquake 29Contributetoachievinganddevelopingsafeand securecommunities 30Community-basedactivitiesledbyofficersand employees 30Effortstosolvesocialissuesbycollaboratingwith NGOsandNPOs

ManagementBase31Keyissuestobeaddressedonasolidmanagementbase 32Customersatisfaction 32Pleasantworkplaceandworkenvironment 33Corporategovernance 33Riskmanagementsystem 34Rigorousinformationmanagement 34Fairbusinesspracticesandcompetition 34Severinganyrelationswithanti-socialforces

35Thirdpartyopinion/ RecognitionforSMFGCSRinitiatives36SMFGGrouppoliciesandframework/ SMFGdata

●Companyprofile (March31,2015)Company Name SumitomoMitsuiFinancialGroup,Inc.

Business Description

Managementofbankingsubsidiaries(underthestipulationsofJapan’sBankingAct)andofnon-banksubsidiaries,aswellastheperformanceofancillaryfunctions

Establishment December2,2002

Head Office 1-2,Marunouchi1-chome,Chiyoda-ku,Tokyo,Japan

Chairman of the Board MasayukiOku

President KoichiMiyata(ConcurrentDirectoratSumitomoMitsuiBankingCorporation)

Consolidated Total Income ¥4,851.2billion

Consolidated Net Income ¥753.6billion

Consolidated Total Assets ¥183,442.6billion

Consolidated Total Net Assets ¥10,696.3billion

Capital ￥2,337.8billion

Stock Exchange Listings

TokyoStockExchange(FirstSection),NagoyaStockExchange(FirstSection)Note:AmericanDepositaryReceipts(ADRs)arelistedontheNewYorkStockExchange.

1◀ ▶

HowtoUsethisReportYoucanmovebetweenthepagesofthisreportusingthecategorytabs,navigationbuttonsandlinkbuttons.

Headercategorytabs

Footernavigationbuttons

Linkbutton

Movetothegatepageofeachcategory

Movetothenextpage

Movetothepreviouspage

Movetotheindicatedwebsite

Contents / Editorial policy Management Environment

W


Management Environment Next Generation Community Management Base

SMFGhasputinplacethisCSRreportinanefforttoconveytoitsstakeholdersthewiderangeofinitiativesundertakenandtheroleplayedbytheGrouptohelpcreateasustainablesociety.InordertoensurethatreadersfullyunderstandthatouractivitiesarebasedontheunderlyingprinciplethatthefulfillmentofCSRistheessenceofbusinessitself,andthemeasureswehavetakentorealizethisconviction,weherereportonthefullrangeofCSRinitiativesundertakenbytheGroup.ThisCSRreportaimstocovercharacteristicinitiatives,withdescriptionsofourlatestmeasures,andtoincludebroaderdisclosurecategories.WehavealsoprovidedlinkstoexamplesofinitiativesatindividualGroupcompanies,makingeffectiveuseofdisclosurereportsonthewebsitesofthecompaniesinquestion.

AttheSMFGGroupweregardcommunicationwithourstakeholdersasvitaltothesuccessofourCSRinitiatives,andforthisreasonweengageininformationdisclosuretargetedatspecialistsaswellasourbusinesspartnersandcustomersviathefivecommunicationinterfacesdescribedbelow.

Reportingperiodandotherinformation◦ReportingPeriod

Thefiscal2014period,the12-monthsfromApril1,2014toMarch31,2015Note:TheReportcontainsadditionalinformationincluding

certainup-to-datedataaswellasfutureprospectswhereconsideredOctober2015.

◦MonthofIssueOctober2015

◦ContactInformation100-00051-2,Marunouchi1-chome,Chiyoda-ku,Tokyo,JapanSumitomoMitsuiFinancialGroup,Inc.TEL:+81-3-3282-8111

Scopeofthisreport◦SumitomoMitsuiFinancialGroup,Inc.◦SumitomoMitsuiBankingCorporation◦SumitomoMitsuiFinanceandLeasingCompany,Limited◦SMBCNikkoSecuritiesInc.◦SMBCFriendSecuritiesCo.,Ltd.◦SumitomoMitsuiCardCompany,Limited◦CedynaFinancialCorporation◦SMBCConsumerFinanceCo.,Ltd.◦TheJapanResearchInstitute,Limited◦OtherGroupCompanies

(THEMINATOBANK,LTD.,KansaiUrbanBankingCorportaion)

ReferenceguidelinesWerefertotheGRI“SustainabilityReportingGuideline(G4).”Note:GRI(GlobalReportingInitiative):Establishedasan

internationalstandardforsustainabilityreporting,complierssetupaninternationalorganizationGRIin1997toencourageitsadoptionworldwide.

CSRReport2015(PDFversion=thepresentreport)Inadditiontoexplainingourapproachtocorporatesocialresponsibilityandtodialogwithourstakeholders,intheCSRReport2015wehaveprovidedanoverviewofmeasurestakeninfiscal2014inlinewithourreviewofpriorityissues(Materiality).W Web　 http://www.smfg.co.jp/english/

responsibility/report/report2015.html

CSRReport2015PerformanceDataversionThisisanumericaldatareportforanalystsandotherspecialistsdetailingtheresultsandplansofalltheSMFGGroupcompaniesintheCSRsphereaswellasperformancedataontheenvironmentandwithrespecttothecompanies’workforces.W Web　 http://www.smfg.co.jp/english/

responsibility/report/report2015.html

SMFGCSRwebsiteThisisawebsitefordatafromeachSMFGcompany.ItenablesustoensurethecompletenessofourinformationdisclosurerelatingtoCSRactivitiesasportalsiteofthewholeSMFGGroup.W Web　http://www.smfg.co.jp/english/responsibility/

CSRCommunicationBookWeusethisbookletasatoolforcommunicationwithourcustomers,providingthemwithaneasy-to-understandintroductiontoCSRinitiativesundertakenbyeachSMFGcompany,withaprimefocusonourpriorityissues(Materiality).W Web　 http://www.smfg.co.jp/responsibility/

report/book/(Japaneseonly)

“SAFE”CorporateenvironmentalmagazineThisisamagazineonenvironmentalbusiness-relatedinformationdistributedtoourbusinesspartnersandcorporatecustomersanddevotedtothethemeofinformationrelatingtodailylifeandtheglobalenvironment,aswellastotheroleplayedinenvironmentalpreservationbyfinancialservices.W Web　http://www.smfg.co.jp/english/responsibility/magazine/

Editorial policy CSR communication tools

http://www.smfg.co.jp/english/responsibility/report/report2015.html


http://www.smfg.co.jp/english/responsibility/

http://www.smfg.co.jp/responsibility/report/book/

http://www.smfg.co.jp/english/responsibility/magazine/




http://www.smfg.co.jp/responsibility/report/book/




Contents / Editorial policy Environment Next Generation Community Management Base

Commitment from the Top

Contributing to the sustainable growth of society as a global financial group

Infiscal2014,theJapaneseeconomycontinuedtorecovermoderatelyafteratemporarydipineconomicactivity,centeredonindustrialproduction,duetoaslumpinconsumerdemandaftertherushofpurchasingaheadoftheconsumptiontaxratehikeinApril2014.OutsideJapan,althoughemergingcountrieslackedgrowthmomentum,economiescontinuedtorecoverledbydevelopedcountries.TheU.S.economycontinuedtoimprove,drivenbydomesticdemand,andtheEuropeaneconomiesmoderatelyrecovereddespitesovereigndebtissues.Further,inFebruary2014JapanintroducedthePrinciplesforResponsibleInstitutionalInvestors(Japan’sStewardshipCode),followedinJune2015bytheapplicationoftheCorporateGovernanceCodetolistedcompanies.Withtheseandothermeasures,companiesarenowrequiredmorethanevertoimplementeffectivecorporategovernance,undertakeenvironmentalandsocialinitiatives,andcooperatewithstakeholders.

Weimplementedvariousinitiativestoachievethemanagementgoalsofourmedium-termmanagementplanforthethreeyearsfromfiscal2014tofiscal2016announcedinMay2014.Specifically,atourbankingunit,SumitomoMitsuiBankingCorporation(SMBC),weenhanceditsbusinessstructuretobetteraddressourclients’diversifyinganddevelopingneeds.ThisincludedincreasingthenumberofCorporateBankingDepartments,establishinganewareamarketingstructure(AreaMainOffices)andintensifyingthecollaborationwithSMBCNikkoSecurities.

TheglobaleconomyandCSRexpectedofSMFGGroupasafinancialgroup

Fiscal2014initiatives

KoichiMiyataPresidentSumitomoMitsuiFinancialGroup,Inc.

TheSMFGGroup’smanagementphilosophyisasfollows:・Wegrowandprospertogetherwithour

customers,byprovidingservicesofgreatervaluetothem.

・Weaimtomaximizeourshareholders'valuethroughthecontinuousgrowthofourbusiness.

・Wecreateaworkenvironmentthatencouragesandrewardsdiligentandhighly-motivatedemployees.

And,webelievethatthefulfillmentofourcorporatesocialresponsibilitiesliesattheverycoreofhowtheGroupismanaged.Inparticular,wearecontributingtotherealizationofasustainablesocietythroughtheimportantrolethatweplayinsocietyandbusinessactivitiesasafinancialgroup.WerecognizethisasasignificantrolethatisrequiredoftheGroup,andwewillcontinueoureffortstofulfillit.



Ourbasicgrouppoliciesforfiscal2015,thesecondyearofthemedium-termmanagementplan,areasfollows:“acceleratekeyinitiativesinaccordancewithmanagementgoals,produceresults,andmovereformforwardvigorouslysothatourclientscantrulybenefitfromourbusinessmodeltransformationthisfiscalyear”and“anticipatechangesandbeproactive,makeadifferencewithSMFG/SMBC’sgenba-ryoku(on-the-groundcapabilities),andcreatebusinessopportunities.”WewillcontinuetomakeeveryefforttocontributetotheJapanesegovernment’songoinginitiativestorevitalizetheeconomyasaleadingfinancialgroupinJapan.Atthesametime,wewillmoveinitiatives

Contributingtothesustainablegrowthofsocietyasaglobalfinancialgroup

Overseas,wemadesteadyprogressinexpandingtheSMBCofficenetworkintopromisingmarkets.Wealsostrengthenedourrelationshipwithleadinglocalfinancialinstitutions,includinginvestinginACLEDABankinCambodiaandacquiringadditionalsharesofTheBankofEastAsiainHongKong.OurCSRinitiativeshavethreepriority(materiality)issues.Theyareenvironment,nextgenerationandcommunity.WeareleveragingthebusinessbaseofourGroupcompaniestoaddresstheseissues.DetailsofsomeoftheseinitiativesareexplainedinlatersectionsofthisCSRReport.Pleasetakealook.

forwardforoursustainablegrowth.SMFGwillalsosponsortheTokyoOlympicandParalympicGamesin2020asaGoldPartnerinthe

“Banking”categoryasoneofourinitiativestocontributetotheeconomicgrowthofJapan.In2015,thePost-2015DevelopmentAgendawasadoptedattheUnitedNationssummitinSeptemberasasetofgoalstosucceedtheMillenniumDevelopmentGoals(MDGs)thatwereagreedin2000.Further,atthe21stSessionoftheConferenceofPartiestotheUnitedNationsFrameworkConventiononClimateChange(COP21),tobeheldattheendofNovember2015,participantsareexpectedtoreachanagreementoninternationaleffortsonclimatechangefrom2020onwards.Inlightofsuchinternationalchallenges,wefurtherrefinedourdefinitionoflastyear’spriority(materiality)issuesbasedontheG4SustainabilityReportingGuidelinesbyGlobalReportingInitiative(GRI)andinternationalframeworksrelatingtosocialresponsibility.Wethen,withactiveinputsfromexperts,assessedtheissuesandchallengestakingintoaccountouractivitiesinfiscal2014.Wewillreflecttheresultsinourfutureactivities.Inthisway,wearerespondingtofeedbackfromallourstakeholdersinordertocontributetothesustainablegrowthofoverallsocietybyfulfillingourroleasaglobalfinancialgroup.Webelievethatwecanenhanceourcorporatevaluebyworkingtogetherwithyou,andhopethatwecancontinuetocountonyourunderstandingandsupportintheyearsahead.

September2015



Intheconductofitsbusinessactivities,SMFGfulfillsitssocialresponsibilitiesbycontributingtothesustainabledevelopmentofsocietyasawholethroughofferinghigheraddedvalueto1)customers,2)shareholdersandthemarket,3)theenvironmentandsociety,and4)employees.

CSR at SMFG

Today,modernsocietyfacesdiverseissuessuchasglobalwarming,rapidpopulationgrowth,anddecliningbirthrateandagingofthepopulationintheadvancedcountries.TheSMFGGroupbelievesthatitisourGroup’ssocialresponsibilities,ourCSR,toremindusofandpracticetherolesastheglobalfinancialgroupforresolvingissuesforthesustainabledevelopmentofthesociety.

SMFGhassetforththedefinitionandcommonprinciplesfor“businessethics”forCSRinordertoclearlydescribeandeffectivelypromoteCSRactivitiesintheGroup.

1.SatisfactoryCustomerServicesWeintendtobeafinancialservicesgroupthathasthecompletetrustandsupportofourcustomers.Forthispurpose,wewillalwaysprovideservicesthatmeetthetrueneedsofourcustomerstoassuretheirsatisfactionandearnconfidenceintheGroup.

2.SoundManagementWeintendtobeafinancialservicesgroupthatmaintainsfair,transparent,andsoundmanagementbasedontheprincipleofself-responsibility.Forthispurpose,alongwithearningthefirmconfidenceofourshareholders,ourcustomers,andthegeneralpublic,wetakealong-termviewofourbusinessandoperateitefficiently,andactivelydiscloseaccuratebusinessinformationabouttheGroup.Throughtheseactivities,weworktomaintaincontinuedgrowthbasedonasoundfinancialposition.

3.ContributingtoSocialDevelopmentWeintendtobeafinancialservicesgroupthatcontributestothehealthydevelopmentofsociety.Forthispurpose,werecognizetheimportanceofourmissiontoserveasacrucialpartofthepublicinfrastructureandalsooursocialresponsibilities.Withsuchrecognition,weundertakebusinessoperationsthatcontributetothesteadydevelopmentofJapanandtherestoftheworld,andendeavor,asagoodcorporatecitizen,tomakeapositivecontributiontosociety.

4.ProactiveandInnovativeCorporationCultureWeintendtobeafinancialservicesgroupforwhichallofficersandemployeesworkwithprideandcommitment.Forthispurpose,werespectpeopleanddevelopemployeeswithextensiveprofessionalknowledgeandcapabilities,therebycreatingaproactiveandinnovativecorporationculture.

5.ComplianceWeintendtobeafinancialservicesgroupthatalwayskeepsinmindtheimportanceofcompliance.Forthispurpose,wereflectourawarenessofBusinessEthicsinourbusinessactivitiesatalltimes.Inaddition,werespondpromptlytodirectivesfromauditorsandinspectors.Throughtheseactions,weobservealllawsandregulations,andupholdmoralstandardsinourbusinesspractices.

●SMFG’sGroup-wideCSRphilosophy:“businessethics”

●SMFG’sdefinitionofCSR

Basic viewsContributingtothesustainabledevelopmentofsociety

BasicCSRpolicies



COLUMN

Asacorporatecitizenoftheglobalsociety,SMFGisfullyawareofthesocialimpactofthefinancialinstitution,anditshallsupportthefollowinginitiativesinJapanandoverseas(theactionguidelinesforthecorporateactivitiesandprinciples).

For400years,theSumitomoandMitsuiconglomerateshaveremainedtruetotheiroriginalbusinessspirit.Inthepast,theSumitomoGroupundertooklarge-scaleafforestationprogramstosolvetheproblemofpollutionaroundtheBesshicoppermine,theGroup’sstartingventureonShikokuIsland.Inordertoreturndevastatedmountainsidesaroundtheminecomplextotheirnaturalstate,theyinvitedexpertstocompileanafforestationplanwithannualplantingofoveronemillionsaplingsMeanwhile,theMitsuiGroupestablishedtheMitsuiCharityHospitalinTokyointheMeijiera(late1800s)toprovidebasicmedicalservicesforthosetoopoortobecoveredbythehealthinsurancesystem.Sincethen,theinstitutionhasevolvedoverthegenerationsintotoday’sMitsuiMemorialHospital.SMFGhascarriedthisDNAdowntothepresent.Webelievethatwehavefurtherrolestoplayinresolvingsocialissuesthroughourcorefinancialservicesbusiness.

TheGroupreferstothefollowingguidelinesinitspromotiondevelopment,andinformationdisclosureforCSR.

1.ISO260002.GRIGuidelines3.UnitedNationsGlobalCompact,COP(CommunicationonProgress),AdvancedLevelCriteria

4.ETHIBEL

1.UnitedNationsGlobalCompact2.UnitedNationsEnvironmentProgrammeFinanceInitiative (UNEPFI)3.CDP(CarbonDisclosureProject)4.EquatorPrinciples5.PrinciplesforFinancialActiontowardaSustainableSociety(PrinciplesforFinancialActionforthe21stCentury)

TheSMFGGroupbelievesthatCSRisthefoundationforSMFGGroup’sbusinessstrategieswhichshouldbeintegrallyincorporatedwithbusinessstrategiesforachievingthemanagementpoliciesandgoals.Inanotherwords,itistheconceptthatweconsistentlyverifyandconfirmaccordingtothebasicpolicyofCSRwhetherthedirectionofourbusinessstrategiespromotedbyourGroupcorrespondswithourvisionin10yearsof“becomingthehighlytrustedglobalfinancialgroupwhichleadsJapanandAsia,andgrowalongwithclients”;andthen,wereflecttheneedsofclientsandsocietyinourCSRactivities.WebelievethatfulfillmentofourCSRliesattheverycoreofourmanagementtask,andseriouslycommittingtotheimplementationofCSRwouldbetheshortestandquickestwaytoachieveourmanagementpoliciesandgoals.

For further details, please see the following websiteW Support for Initiatives in Japan and Overseas and

CSR Guidelines Used as References http://www.smfg.co.jp/english/responsibility/smfgcsr/structure.html

CSR: In our DNA for 400 years

BessicoppermineintheMeijieraandtoday

MitsuiCharityHospital(todays’MitsuiMemorialHospital)atitsestablishment

Integral development of CSR and business activities

Support for initiatives in Japan and overseas and CSR guidelines used as referencesGuidelinesusedforreferenceSupportforinitiativesinJapanandoverseas

http://www.smfg.co.jp/english/responsibility/smfgcsr/structure.html





CSR at SMFG

TheEquatorPrinciplesareasetofguidelinesdevelopedbyprivatefinancialinstitutionsformanagingenvironmentalandsocialrisksrelatedtofinancinglarge-scaledevelopmentprojects.TheEquatorPrinciplesapplytoprojectfinancetransactions,project-relatedcorporateloansandbridgeloansthatareintendedtoberefinancedtoprojectfinanceorcorporateloans,regardlessofthecountryorthesector.TheEquatorPrinciplesarebasedontheenvironmentalandsocialpoliciesandguidelinesoftheInternationalFinanceCorporation(IFC),theprivatesectorarmoftheWorldBank.Thesepoliciesandguidelinescoveravarietyofissuessuchasenvironmentalandsocialimpactassessmentprocess,pollutionpreventionandabatement,considerationstolocalcommunitiesandnaturalresources.FinancialinstitutionsthatadopttheEquatorPrinciplesarerequiredtoestablishtheirowninternalenvironmentalandsocialguidelinesandproceduresinaccordancewiththeEquatorPrinciples,andtoconductenvironmentalandsocialriskassessments.AmongotherEquatorPrinciplesWorkingGroups,SMBCisamemberofthefollowingWorkingGroups;

“PrinciplesforFinancialActiontowardsaSustainableSociety,”whichwereadoptedinOctober2011,aresignedbySMBC,SMBCNikkoSecurities,SMBCFriendSecurities,MinatoBank,KansaiUrbanBankingCorporationandJapanNetBank.Theprincipleshavebeensetforthforthepurposesofmakingtheenvironmentalfinancingwidely-knownandimprovingthequalityofenvironmentalfinancing.SMBChasparticipatedsince2012asasteeringmemberfortheSteeringCommittee,whichismadeupof193financialinstitutions(asofMarch31,2015).Basedontheseprinciples,theGroupcontinuestoexpanditsenvironmentalfinancingactivitiesinJapan.

PerformanceinApplicationoftheEquatorPrinciplesCategory Number of projects

Category A*1 7Category B*2 43Category C*3 8

Total 58

By Region Number of projectsAsia & Oceania 14

Europe, Middle East, and Africa 16Americas 28

Total 58

Sector Number of projectsPower 24

Infrastructure 14Oil & Gas 14

Mining 2Other 4Total 58

*1Projectswithpotentialsignificantadverseenvironmentalandsocialrisk

*2Projectswithpotentiallimitedadverseenvironmentalandsocialrisks

*3Projectswithminimalornoadverseenvironmentalandsocialrisks

Actions on various principlesEquatorPrinciples

Signingofthe“PrinciplesforFinancialActions(theprinciplesforfinancialactionsforthe21stCentury)forAchievingtheSustainableSociety”

◦OutreachWorkingGroup,whichencouragesdevelopmentoftheEquatorPrinciplesinemergingcountries◦ExternalRelationshipWorkingGroup,whichbuildsrelationshipwithexternalparties◦ConsistencyWorkingGroup,whichworkstoimproveconsistencyintheEquatorPrinciplesimplementation



WehaveestablishedtheGroupCSRCommittee,administeredbytheGroupCSRDepartment,toassesstheCSRimplementationplansofthewholeGroup,andmanageprogress.Specifically,departmentsareassignedresponsibilityforeachtarget,andtheGroupCSRDepartmentandassigneddepartmentsjointlyconductannualreviewsofprogressmadeintheseinitiatives.TheresultsofthesereviewsarereportedtotheGroupCSRCommittee.TheGroupCSRDepartmentandassigneddepartmentsalsoconductajointexaminationofplansforthefollowingfinancialyear,thefindingsofwhicharesubsequentlyassessedbytheGroupCSRCommittee.Inthisway,weusethePDCAcycleinourCSRinitiatives.Additionally,therearecaseswhereinitiativesarehandledbyindividualCSRcategory.Forexample,thecustomersatisfaction(CS)policiesofeachSMFGcompanyarepursuedjointly,andthesuccessfulmeasuresarerolledouthorizontallyacrosstheGrouporganization,withtheGroupCSCommitteeasthemainbodyengagedinimprovementofCSandquality.Inmeasurestoreduceenvironmentalimpact,theSMFGandsixprincipalSMFGcompanieshaveobtainedtheinternationalenvironmentalmanagementstandard

TheGroupenhancesCSRactivitiesafterincorporatinginputfromthirdpartyopinions,questionnairesandothersourcesinsideandoutsideSMFGaboutitsCSRreports.

SMBCorganizestrainingcoursestailoredtoemployeegrade,includingnewhiresandnewlyappointedmanagementemployees.Whensuchtrainingisgiven,CSRisincludedtoensurefullemployeefamiliarization.Infiscal2014,atotalof2,043employeestookpartinthesetrainingprograms.Inaddition,trainingandothersupportarealsogivenunderthefullrangeofCSRthemes,includinghumanrights,puttingthecustomerfirst,compliance,anti-moneylaundering,anddiversity.

CSRtrainingtailoredtoemployeegrades (Trainingrecipients)

Fiscal year

Training for new hires

Training for newly

appointed management employees

Training for newly

appointed branch

managers

Training for mid-career

hires on joining SMFG

Total

2011 709 407 126 0 1,242

2012 833 417 189 8 1,447

2013 1,151 349 170 6 1,676

2014 1,343 424 238 38 2,043

GroupwideCSR-relatedorganizations

Group CSR Committee Conductsconsultation,etc.onCSR-relatedmattersaffectingthewholeGroup.

Group CS Committee Conductsconsultation,etc.onprogressinimprovingcustomersatisfactiononaGroupwidebasis.

CSR Liaison CommitteeTheCSRLiaisonCommitteeexchangesinformationregardingprogressinCSRpromotionatindividualGroupcompanies,andcloselystudiesparticularlyprogressivemeasures.

SMFGCSRpromotionstructure CSRactivitiesandthePDCAcycle

For details regarding information on the Group’s CSR goals and performance, please refer to SMFG’s websiteW CSR Performance and Goals

http://www.smfg.co.jp/english/responsibility/smfgcsr/goal/W CSR Report 2015 Performance Data

http://www.smfg.co.jp/english/responsibility/report/pdf/2015/SMFG_csr15e14.pdf

For further details, please see the following websiteW Information on CSR Initiative Improvements

http://www.smfg.co.jp/english/responsibility/smfgcsr/opinion.html

ISO14001,andfollowtheproceduresofPlan,Do,Check,andAct(PDCA)cycleforsuchenvironmentalactivities.TofurtherstrengthenpromotionofCSRactivitiesacrosstheGroup,SMFGestablishedtheCSRLiaisonCommitteeinfiscal2010.ThisCommitteeregularlyengagesindiscussionandconsultationtoencourageGroup-wideimplementationofpoliciesandsuccessfulinitiativesofindividualGroupcompanies.

Group CSR Committee Our Mission

Basic CSR Policy(Business Ethics)

Board of Directors

Promoting CSR through core operations

Management CommitteeChairman：DirectorinchargeofSMFGCorporatePlanningDepartmentCommittee members： GeneralManagersofSMFG,SumitomoMitsuiBankingCorporation,SumitomoMitsuiFinanceandLeasing,SMBCNikkoSecurities,SMBCFriendSecurities,SumitomoMitsuiCard,Cedyna,SMBCConsumerFinance,TheJapanResearchInstitute,andTHEMINATOBANK,andKansaiUrbanBankingCorportaionAdministered by： GroupCSRDepartmentofSMFGStrategic advisor： JRICenterfortheStrategyofEmergence

CSR Liaison Committee The

Japa

nRe

sear

chIn

stitu

te

SMBC

Con

sum

erF

inanc

e

Cedy

na

Sum

itom

oM

itsui

Car

d

SMBC

Frie

ndS

ecur

ities

SMBC

Nik

koS

ecur

ities

Inc.

Sum

itom

oM

itsui

Fin

ance

and

Lea

sing

Sum

itom

oM

itsui

Ban

king

Cor

pora

tion

Customers PLANShareholders and the market DOThe environment and society CHECK

Employees ACT

CSR management

CSR training tailored to employee grades

Managementapproachfortargetachievement

ImprovementinCSRactivitiesincorporatingstakeholderinput

http://www.smfg.co.jp/english/responsibility/smfgcsr/goal/

http://www.smfg.co.jp/english/responsibility/smfgcsr/goal/








For details regarding various activities, please refer to SMFG’s websiteW Communication with Customers (Customers)

http://www.smfg.co.jp/english/responsibility/cs/W Communication with Shareholders and Investors (Shareholders and the Market)

http://www.smfg.co.jp/english/responsibility/smfgcsr/disclosure/W IR Information (Shareholders and the Market)

http://www.smfg.co.jp/english/investor/

◦Customers:Weshalladvancetogetherwithourclientsbyprovidinghighlyvaluedproductsandservices.

◦Shareholdersandthemarket:Weshallstrivetomaintainasoundmanagementandmaximizeshareholdervaluebyhavingappropriatedisclosureofinformationandimprovingtheinternalcontrolsystem.

◦Theenvironmentandsociety:Weshallstrivetocontributetothesocietyandpreservetheearth’senvironmentbyconsistentlyandproactivelyinvolvingandparticipatinginthesocialandenvironmentalactivitiesandprograms.

◦Employees:Weshallpromotefree-spiritedandopen-mindedbusinesscultureunderwhichindividualemployeesarerespectedandallowedtoexerciseeachindividual’sfullpotential.

CSRvaluesforSMFG

PDCAcycleinabidtoaddressthreepriorityissues

For details, please refer to SMFG’s websiteW Dialogue with Stakeholders

http://www.smfg.co.jp/english/responsibility/ csrfinance/dialog_index.html

Drawingonthestrengthsofasolidmanagementstructure,SMFGstrivestofulfillitscorporatesocialresponsibilitieswiththeaimofactivelycontributingtothesustainabledevelopmentofsociety.Tothisend,SMFGworksdiligentlytoprovidegreatervaluetoitsfourmajorgroupsofstakeholders.

TheGrouphasreviewedthepreviously-raisedpriorityissuesaccordingtochangesinsocietythroughoutfiscal2014,andnewlyidentifiedthreesubjectmattersof“Environment,”

“NextGenerations”and“Community”asthemedium-tolong-termpriorityissues(Materiality).Infiscal2015,wewilltakefurtherstepstoidentifyissuesrequiringactionwithregardtoourpriorityissues,andincorporatethemintospecificresponses.

Contributing to the sustainable development of society

Stakeholder Engagement

Customers

Highly-valuedproducts

and services

CSR Group Initiatives

Solid management structure(corporate governance, internal controls, compliance,

risk management, information disclosure, etc.)

Shareholdersand the Market

SoundManagement

The Environmentand Society

Social andenvironmental

activities and programs

Employees

Corporate culture

respectingthe individuals

ApproachtodialoguewithstakeholdersCustomers〈Dialogue〉

Toll-freetelephoneservice,CSsurveys,

In-branchquestionnaires

The Environment and Society〈Dialogue〉

CooperationwithNGOsandNPOs,EnvironmentalBusinessForum

Shareholders and the Market〈Dialogue〉

Shareholders’Meetings,Smallmeetings,Annualreport

Employees〈Dialogue〉

Employeesurveys,Opinionexchangemeetingwith

topmanagement

SMFG

The SMFG Group’s contribution to the sustainable development of society through its stakeholders

Relationship with our four major groups of stakeholders

PDCA cycle in a bid to resolve priority issues

StakeholderEngagement

PLAN

DOACT

CHECK

Environment

CommunityNextGeneration

W Environmental Preservation Initiatives (The Environment and Society) http://www.smfg.co.jp/english/responsibility/environment/

W Social Contribution Activities (The Environment and Society) http://www.smfg.co.jp/english/responsibility/community/

W Human Resources (Employees) http://www.smfg.co.jp/english/responsibility/employee/

http://www.smfg.co.jp/english/responsibility/cs/

http://www.smfg.co.jp/english/responsibility/cs/

http://www.smfg.co.jp/english/responsibility/smfgcsr/disclosure/

http://www.smfg.co.jp/english/responsibility/smfgcsr/disclosure/



http://www.smfg.co.jp/english/responsibility/csrfinance/dialog_index.html

http://www.smfg.co.jp/english/responsibility/environment/


http://www.smfg.co.jp/english/responsibility/community/


http://www.smfg.co.jp/english/responsibility/employee/

http://www.smfg.co.jp/english/responsibility/employee/



Priority Issues (Materiality) that SMFG should addressWehavereviewedourpriorityissuesandderivedthreenewthemes—“Environment,”“NextGeneration,”and“Community”—asourmedium-tolong-termpriorityissuesthatformthecoreoftheSMFGGroup’sCSRactivities.Foreachthemes,wearealsofocusingon“wherewewanttobetenyearsfromnow”byclarifyingmattersandissuestobeaddressedandtakingactiononthem.

EnvironmentToward a sustainable world that all can share

Next Generation

Toward a vibrant society that balances maturity and growth

CommunityToward a healthy and distinctive community in which everyone can participate

Issues we should address◦ Promotion of environmental

management integrated with business

◦ Reducing environmental impact

◦ Managing environmental risks

◦ Promotion of environmental businesses

◦ Environment-related social contribution activities

Where we want to be ten years from now

A financial services group that

takes the lead in tackling

global environmental issues


A financial services group that helps create a society where the next generation

can also play an active part vigorously


A financial services group that contributes to the creation and

further development of safe communities, which are the bedrock

of Japanese society as a whole

Issues we should address◦ Support for next generation asset

inheritance and business succession

◦ Contributing as a financial institution to emerging countries

◦ Contribution to raising the level of financial literacy

◦ Global HR development

◦ Work-life balance and workplace with diversity

Issues we should address◦ Reconstruction for the Great East

Japan Earthquake

◦ Contribute to achieving and developing safe and secure communities

◦ Community-based activities led by officers and employees

◦ Efforts to solve social issues by collaborating with NGOs and NPOs

[Priority issues that SMFG should address]As a Financial Group, be a Bridge to the Future

Key issues to be addressed on a solid management base

Fair business practices and competition

Risk management

Corporate governance

Interaction with stakeholders

Severing any relations with anti-social forces

Rigorous information management

Pleasant workplace and work environmentCustomer satisfaction



Priority Issues (Materiality) that SMFG should address

InlightofconstantlychangingsocialtrendsandareassessmentoftherelativeimportanceoftheGroup’spriorityissuesamongitsstakeholders,andinordertoadaptourCSRactivitiestothesedevelopments,infiscal2013wereviewedourpriorityissuesandhavederivedthreenewthemes—“Environment,”“NextGeneration,”and

“Community”—asourmedium-tolong-termpriorityissuesthatformthecoreoftheSMFGGroup’sCSRactivities.Inidentifyingthesepriorityissues,wemadeuseoftheG4sustainabilityreportingguidelinesissuedbytheGlobal

Identifying the issuesReportingInitiative(GRI),andwithparticipationfromallGroupcompanies,wederivedanorderofpriorityforvarioussocialissues.Wealsoengagedindialogwithanumberofexpertstoassesstherelativeimportanceassignedbyourstakeholderstothevariousissues.Theninfiscal2014,throughengagementwithstakeholdersinandoutsidetheGroup,weworkedtostrengthenourreviewofpriorityissuesandassociatedinitiatives.

Wederivedaround150wide-rangingCSRissuesfromtheGRIGuidelines(G4)andISO26000throughthediscussionswithourGroupcompanies.Wethenassignedanorderofprioritytotheseissuesfromthestandpointofourstakeholders.Theywerefirstplacedintotwocategories—“ourmedium-tolongtermpriorityissues(environment,nextgeneration,andcommunity),”and“keyissuestobeaddressedonsolidmanagementstructure.”

InFebruary2014,weconductedadialogwithselectedgroupofexpertsonour“issuesthoughtlikelytobeimportantoverthemedium-to-longterm,”and“issuesthatmustbeeffectivelyaddressedinordertoconstructasolidmanagementsystem”tocheck,fromtheperspectiveofsocialnature,environmentandglobalissueswhethersufficientconsiderationandrecognitionhadbeengiventoalltheissuesthatshouldbeputforwardascandidatepriorityissues,andtoensurethatnoimportantissueshadslippedthroughthenet.Aftercarryingoutstep2,weconductedrevisioninlinewiththeopinionsexpressed,andidentifiedthepriorityissuestobeaddressedbySMFGafterreceivingtheapprovaloftheexperts.

FromJuly2014wehavecollectedopinionsfrominandoutsideourGroupthroughemployeesurveysheldduringinternaltrainingandexternalsurveysinourCSRreport,whichcontainsthepriorityissues(Materiality)thatSMFGshouldaddress.InMay2015,weheldadialogwithanumberofexpertstofurtherclarifymorespecificmattersandissuesthatSMFGshouldaddressintheareasof“medium-tolong-termpriorityissues(environment,nextgeneration,andcommunity)”and“keyissuestobeaddressedonasolidmanagementbase.”

InMarch2014,theGroup’sManagementCommitteegaveapprovalforthepriorityissues(Materiality)thatSMGFshouldaddressthroughtheGroupCSRCommitteeandtheCSRLiaisonCommittee.Moreover,approvalwasreceivedfortheexaminationofspecificmethodsofaddressingpriorityissuesafterdiscussionandreviewwithstakeholdersbothwithinandoutsidetheGroupandeachGroupcompany.

Standards used for reference in prioritization

Importance to Stakeholders◦Internationalframeworks

suchastheGRIGuidelines◦Itemstoberesearchedor

pointedbytheSociallyResponsibleInvesting(SRI)-relatedinstitutions

◦SuggestionsfromthestrategyadvisortotheSMFGGroupCSRCommittee

Importance to SMFG◦Priorityissuesfrom10

Groupcompanies◦ConformitywithSMFG’s

BusinessMission,businessethics,andmedium-termmanagementplan

◦Assessmentofrisksandpossiblebusinessopportunities(potentialforenhancingenterprisevalue)inlinewithpursuitofsustainability

Step1Selectionandprioritizationofissues

Step2Reexaminationandidentificationthroughdialogwithexperts

Step4Reviewthroughengagement

Step3ReportingtoGrouptopmanagement,andreceivingapproval



InJuly-August2014,weconductedasurveyofCSRpromotingpersonnelinalldomesticbranchestoascertaintheawarenessandimportanceofCSRamongemployees.ThesurveyaskedemployeeswhichofthemainCSRactivitiestheyconsideredimportanttoSMFG.Intheresults,17%ofthemindicatedenvironmentalimpactreductionsuchasmeasurestopreventglobalwarmingandmakeeffectiveuseofresources;next,15%indicatedsolvingenvironmentalandsocialissuesthroughenvironmentallyconsideratefinancingandsoforth,and11%indicatedcontributiontotherealizationofasafeandsecuresocietythatwillformasocialinfrastructure.

Togetto“wherewewanttobetenyearsfromnow”intermsofthepriorityissuesof“environment”“nextgeneration”and“community”thatwereidentifiedinfiscal2013,weclarifiedthemattersandissuesthatSMFGshouldaddresstodriveaPDCAcyclefordeterminingmoreconcreteaction.Inclarifyingthesemattersandissues,welookednotonlyattheCSRissuesthatareconsideredimportantbyGroupcompanies,butalsoatthose*thatmattertoourstakeholders.Furthermore,weheldadialogwithanumberofexpertstocheckwhethersufficientconsiderationandrecognitionhasbeengiventothemattersandissuesthatSMFGshouldaddressandensurethatnonehaveslippedthroughthenet.Moreover,tocomplywiththeGRIG4Guidelines,wecreatedanassociationbetweenthemattersandissuestobeaddressedandthespecifiedstandarddisclosureitems,andheldadiscussionaboutboundaries.

*Regardingpriorityissuesforstakeholders,werefertotheissueslistedintheSustainabilityAccountingStandardsBoard’s

“DisclosureTopicsforFinancialsSector”andtheissuesforthefinancialsectorsummarizedintheNipponCSRConsortiumheldbyCauxRoundTableJapan.

Fiscal 2014 initiatives

Lookingattheresultsbythethreepriorityissues(Materiality),40.1%ofissuesarerelatedto“environment,”28.5%arerelatedto“nextgeneration,”and22.4%arerelatedto“community.”Thismadeusclearlyrealizetheimportanceofthepriorityissueof“environment.”Furthermore,manyemployeescalledforfullerdisseminationofCSRinformationinandoutsidetheGroup.WethereforediscoveredthatthereisaneedtocomeupwithwaystobolsterrecognitionofourCSRactivities.WewillcontinuetolistentoopinionsfrominandoutsidetheGroupaswetakestepstoenhancetheGroup’sCSRactivities.

Employeesurvey

ClarifyingmattersandissuesthatSMFGshouldaddressinordertogetto“wherewewanttobetenyearsfromnow”

Dialogwithexperts

Experts who attended the dialog Selection of opinions◦IthinkSMFGshouldplaceevenmoreemphasisonusingitsfinancialfunctionsto

providesolutionsforsocialproblems.◦ThereisacallfortheGrouptoexpanditsinitiativesonhumanrights◦Thetarget“Community”shouldtakeintoaccountnotonlydomesticandoverseas,

butalsoinvestees’perspectives.◦Employeesrequireeducationandawareness-raisinginordertomakeanimpact

withtheirdailyworkoperations,includingontheindividualhumanrightsofinvesteesandontheenvironment.

◦Theriskperspectiveisimportantfortheenvironmentbusinessandotheroverseasbusinessdevelopment.SMFGshouldprovidemoredisclosureoninitiativessuchastheEquatorPrinciplesandtheGlobalCompact.

◦SMFGneedstoconsidercomingupwithbusinessideasthatoriginatefromsocialissuesbasedontheconceptofworking“incollaboration”withNGOsandNPOsratherthanmerely“supporting”them.

One AkiyamaPresidentIntegrexInc.

Kaori KurodaExecutiveDirectorCSONetworkJapan


Contents / Editorial policy Management Environment Next Generation Community Management Base

BasedontheinternationalenvironmentalmanagementcertificationISO14001,wearepromotingGroup-wideenvironmentalactivitiesthroughaPDCAcycle.

Wearehelpingtopreparefortheneedsofanagedsocietybyprovidingfinancialservicestoassisttheprovisionofhousingandfacilitiesforelderlypeopleaswellasmedicalandotherfacilities.

InareasaffectedbytheGreatEastJapanEarthquake,weareconductingaraftofvolunteeractivitiestailoredtoeachrecoverystagetoassisttherecoveryindustry,communities,people,andthenaturalenvironment.

Throughinitiativessuchastheintroductionofuniversaldesignanduniversalserviceandtrainingofsupportersforclientssufferingfromcognitiveimpairment,weareworkingtocreateanenvironmentthatallourclientscanusesafelyandsecurely.

WearetakingactiononsocialissuesinemergingcountriesandotherareastohelpachieveourgoalofbecomingatrulyAsia-centricinstitution,whichispartofourvisionforthenextdecade.

WehavesetGroup-widetargetsforreducingourenvironmentalimpactandwearenowworkingbothtosaveenergybyimprovingtheenvironmentalperformanceofourfacilitiesandalsotoreducewaste.

Promotionofenvironmentalmanagementintegratedwithbusiness

Supportfornextgenerationassetinheritanceandbusinesssuccession

ReconstructionfortheGreatEastJapanEarthquake

Contributetoachievinganddevelopingsafeandsecurecommunities

Contributingasafinancialinstitutiontoemergingcountries

Reducingenvironmentalimpact

Environment

NextGeneration

Community

▼ P.16

▼ P.23

▼ P.28

▼ P.29

▼ P.24

▼ P.17

Toward a sustainable world that all can share


Toward a healthy and distinctive community in which everyone can participate

Report about three priority issues



EmployeesinJapanandoverseasleadeffortstoparticipateinlocaleventsandvolunteeractivities,operatingalunchdonationprogramandotherinitiativescloselytiedtolocalcommunities.

Throughinitiativessuchastheintroductionofuniversaldesignanduniversalserviceandtrainingofsupportersforclientssufferingfromcognitiveimpairment,weareworkingtocreateanenvironmentthatallourclientscanusesafelyandsecurely.

OurGroupcompaniesconductlessonvisits,seminars,andotheractivitiestopromotethespreadofessentialfinancialknowledgetoallgenerationsfromelementaryschoolstudents,toworking-ageadultsandseniors.

ThroughscholarshipprogramssetupbyfoundationsinJapanandoverseas,andalsobyoverseasbusinessoffices,weareprovidingsupportforthenext-generationofstudentsallovertheworld.

Hereweintroduceourfinancialservicesforsupportingcompaniesthatpromotewomen’sadvancementintheworkplaceandourowninitiativesforpromotingagoodwork-lifebalance.

Westrivetoensureanappropriateenvironmentalandsocialriskassessmentframework,includingfactoringenvironmentalrisksintocreditassessments,whileraisingemployees’awareness.

Weworktoprovidefinancialservicesdesignedtohelppromoterenewableenergyandreduceenvironmentalimpact,suchasSMBCEnvironmentalAssessmentLoans.

Weconductenvironmentalpreservationactivities,suchasclean-upeventsbyGroupcompanyemployees,andinitiativestopromoteenvironmentalliteracy.

Community-basedactivitiesledbyofficersandemployees

EffortstosolvesocialissuesbycollaboratingwithNGOsandNPOs

Contributiontoraisingtheleveloffinancialliteracy GlobalHRdevelopment Work-lifebalanceand

workplacewithdiversity

Managingenvironmentalrisks

Promotionofenvironmentalbusinesses

Environment-relatedsocialcontributionactivities

Fromthemedium-tolong-termissuesthatformthecoreoftheSMFGGroup’sCSRactivities,wehavederivedthreenewthemes—Environment,NextGeneration,andCommunity.FromhereonwardweplantoreportonthesignificantinitiativestakenbytheGroup’smembercompaniesinlinewiththesethreethemes.

Environment

Next Generation

Community

Measurestoaddressthreepriorityissues

▼ P.30

▼ P.30

▼ P.25

▼ P.26

▼ P.26

▼ P.18

▼ P.18

▼ P.21


Contents / Editorial policy Management Next Generation Community Management Base

Many issues have emerged in the world today, from climate change and biodiversity loss to resource depletion and food shortages caused by population increases. The Intergovernmental Panel on Climate Change holds that resilient societies are formed and sustainable development is promoted when effective measures to address and ameliorate these problems are promoted through reforms to political, social, economic, and technical systems. In the financial services industry, environmental risk assessments must be conducted on financing and investment targets, and emphasis is placed on environmental education for the employees that promote these assessments.

The SMFG Group seeks to reduce the environmental impact of its business activities and contribute to global environmental protection from an economic standpoint by leveraging its financial functions. Our focus with respect to customer environmental measures is on four areas, the environment, renewable energy, water, and natural resources, and by providing financial services along with consulting on carbon credit utilization and environmental management, our aim is to help create more sustainable societies while generating business opportunities.

Environmental management at the SMFG Group is based on the Group Environmental Policy and ISO 14001. In financial services, we promote business activities based on the guidelines and principles of initiatives such as the UN Global Compact and Equator Principles.

Toward a sustainable world that all can share

Recognition of Social Issues

SMFG’s Approach

SMFG’s Management

W The Group Environmental Policy / Environmental Management System based on ISO14001 certification http://www.smfg.co.jp/english/responsibility/environment/

W Performance Data and Goals of the Six Principal SMFG Companies http://www.smfg.co.jp/english/responsibility/environment/achievement/

W CSR Activity Performance and Goals of SMFG Companies http://www.smfg.co.jp/english/responsibility/smfgcsr/goal/group.html

Environment

In order to promote these activities effectively, we have identified the following five key issues. ◦ Promotion of environmental management integrated with

business◦ Reducing environmental impact◦ Managing environmental risks◦ Promotion of environmental businesses◦ Environment-related social contribution activities




http://www.smfg.co.jp/english/responsibility/environment/achievement/




http://www.smfg.co.jp/english/responsibility/smfgcsr/goal/group.html





EnvironmentalinitiativesEnvironmentalManagementSystem(EMS)BasedonISO14001Certification

Promotion of environmental management integrated with business

Thethreepillarsofourenvironmentalactionplanare:1)“Reductionofimpactsonenvironment,”2)“Managementofenvironmentalrisks,”and3)“Promotionofenvironmentalbusinesses.”WehavesetenvironmentalobjectivesforeachenvironmentalactivityandfollowtheproceduresofPlan,Do,Check,andAct(PDCA)forsuchenvironmentalactivities.

TheenvironmentalmanagementcertificationofISO14001hasbeenobtainedbySMFGanditsmajorcompanies(SMBC,SumitomoMitsuiFinanceandLeasing(“SMFL,”)SMBCNikkoSecurities,SMBCFriendSecurities,SumitomoMitsuiCardandJRI).In1998,SMBCwasthefirstbankinJapantoobtainthiscertification.TheGrouphasdevelopedthestructuretopromoteEMS,whichisorganizedandmanagedmainlybytheCorporatePlanningDepartmentandseniorenvironmentalofficers.CedynaandSMBCConsumerFinancealsoplantoobtaincertificationinfiscal2015,soalleightoftheGroup’sprincipalcompanieswillbecertified.

facilitiestodramaticallyimprovetheirenvironmentalperformanceandpromotingenergysaving.SMFGGroupcompanyemployeesalsoengagedinenvironmentalpreservationactivitiessuchascleanupinitiativesandtheGroupworkedtoimprovetheirenvironmentalliteracythroughcollaborationwithorganizations.

Infiscal2014,SMBCworkedtooffercustomersfinancialservicesthathelpthemtoreducetheirenvironmentalimpact,suchastheSMBCEnvironmentalAssessmentLoad/PrivatePlacementBond,theSMBCSolarLoan,andhandlingofJapan’sfirstmobilehydrogenstationlease.Thebankalsotookstepstoreduceitsownimpactontheenvironment,suchasrebuildingandimprovingbank

Overview of fiscal 2014 activities and issues

EnvironmentalActionPlanandPDCAProcedures

The Group Environmental Policy

Implementation of environmental initiatives

Reduce environmental implications

Manage environmental risks

Promote environmental businesses

ISO14001assessmentunderwayPLAN

DOACT

CHECK



Contributingtorecycling-basedsocietythroughreuseandrecyclingofmachineryandequipment

Initiativesforenergyconsumptionoffacilities Solarpanelsinstalledoncomputercenters

Reducing environmental impact

SMFLleasesawiderangeofmachineryandequipmenttoitscustomerswhilealsoassumingresponsibilityfortheequipment’slifecycleupthroughreuseandrecycle.Forequipmentthatisreturnedwhenitsleaseagreementends,thecompanypromotesitsreuseasusedequipment.Equipmentthatcannotbereusedisrecycledintometalandothermaterialsinordertoreducewastetothemaximumextentpossibleandenvironmentalimpact.Ontheotherhand,whenapieceofequipmentisnotsuitableforreuse,itiscarefullyprocessedinaccordancewithapplicablelawsandregulations.Inaddition,whenwasteisdischarged,thecompanyensuresappropriateprocessingthroughutilizationoftheelectronicmanifestsystemwhilealsofocusingonprogressmanagementandadministrativeefficiency.SMFLwillcontinuetodoitspartincreatingarecycling-basedsocietybyfurtherpromotingthereuseandrecyclingofmachineryandequipment.

SMFGsetsenvironmentalobjectivesforreducingenergyconsumptionsuchaselectricityforeachfiscalyear,anditstrivestoimplementenergy-savingmeasurestoreachthetargetedgoal.FortheSMBCEastTower,whichwascompletedinthesummerof2015,wehavetakenintoconsiderationtheenvironmentalawarenessonthefollowingissues:1)utilizationandpreservationofnature;2)implementationofhighlyefficientsystems;3)reductionofadverseenvironmentaleffects;and4)creationofasustainablebuilding.Weareexpectedtoincorporatediverseenergy-savingtechnologiestoreduceapproximately35%ofCO2emission*.AstheOsakaHeadOfficebuildingwasbuiltover80yearsago,thetwo-yearrenovationofthebuildingwascompletedinMay2015.Fortherenovation,wehaveinstalledhighperformingexteriorwallframes,LEDlightingsandsolarpanelswhileretainingtheoriginalcharmofthehistoricalstructure,bysubstantiallyimprovingtheenvironmentalperformanceinadditiontoappropriatelyadaptingtomodernworkstyles.

SumitomoMitsuiFinancialGroup,SumitomoMitsuiBankingCorporationandTheJapanResearchInstitutehaveinstalledsolarpowergenerationequipmentontherooftopsoftheirmaincomputercenterandhavealsoconductedenergyconservationmeasuresasapartoftheirenvironmentalinitiatives.Storagebatterieshavealsobeeninstalledforpowersupplystabilityattimesofpeakpowerconsumptionduringthedayregardlessoftheweather.

*Comparedtoanaverageofficebuildings

SMBCEastTowerExhibitionplaceofthere-machinesalesdivision

InsidetheexhibitionplaceOsakaHeadOfficewithrenovationscompleted



Environmentalriskassessment

Raisingenvironmentalawareness

Managing environmental risks

SMBCbelievesitisimportanttotakeintoaccounttheenvironmentalrisksforconductingcreditassessment.Factoringenvironmentalrisksinthecreditassessment(environmentalcreditrisks)isstipulatedinSMBC’sCreditPolicy,whichsetsforththeuniversalandbasicphilosophies,guidelinesandrulesforcreditoperations.Thepolicyalsodeclaresthatthebankwillnotexecuteloanstocompaniesandbusinessesthathaveanadverseenvironmentalimpact.

AtSMBC,theEADsendsoutitsmonthlyEADNewslettertootherdepartmentsandemployeeswithinthebank,sharingnewsrelatedtotheenvironmentfromaroundtheglobeaswellasarticlesonspecificprojectsinordertofurtherraiseenvironmentalawarenessamongemployees.

Environmentalsocialriskassessmentflowchart

Clients

Lending Branches

Credit DepartmentsEnvironm

ent Analysis Departm

ent

SMBChasadoptedtheEquatorPrinciples,asetofprinciplesfordetermining,assessingandmanagingenvironmentalandsocialrisksinprojectfinancingandhasestablishedtheEnvironmentAnalysisDepartment(EAD)toassesstheenvironmentalandsocialrisksoflarge-scaledevelopmentprojectsinaccordancewiththeprinciples.InOctober2013,followingthethirdrevisionoftheEquatorPrinciples,SMBCalsoreviseditsinternalprocedurestoimproveitssystemforassessingenvironmentalandsocialrisks.Furthermore,SMBCcontinuestoimproveitsenvironmentalandsocialriskassessmentsystemswhichreceivedathird-partyguaranteemadebyErnst&YoungSustainabilityCo.,Ltd.withrespecttoapplicationstatusoftheEquatorPrinciples.

Addressingenvironmentalissuesthroughfinancing

Promotion of environmental businesses

AtSMBC,wearedevelopingfinancialsolutionstosupporttoworkofawiderangeofcustomersengagedintacklingvarioussocialissuessuchasofenvironmentalproblemsforresourceandenergyconservationor,globalwarming;countermeasuresfornaturaldisasters;orensuringfoodsafety.In2006webeganofferingtheSMBC-ECOLoan,aformoffinancingforsmallandmedium-sizedenterprisesthathaveacquiredthecertificationforenvironmentmanagementsystem.SoonafterthistheJapanResearchInstitute,Limitedbeganassigningratingstotheenvironmentaleffortsofourcorporatecustomers,allowingSMBCtooffertheSMBCEnvironmentalAssessmentLoansandPrivatePlacementBonds,inwhichtheloantermsdependoneachcustomer’srating.

Variousassessment-typeloans

Fiscal 2008

SMBCEnvironmentalAssessmentLoan/PrivatePlacementBond Assessingandsupportingthe

environmentalactivitiesofcompaniesandthecorporatesectorFiscal

2010SMBCEnvironmentalAssessmentLoan/PrivatePlacementBond,ecoValue-Up

Fiscal 2011

SMBCFoodandAgricultureAssessmentLoan/PrivatePlacementBond

Assessingandsupportingmeasuresaimedatpromotingfoodsafetyandsecurityaswellasafoodculture

SMBCSustainableBuildingAssessmentLoan/PrivatePlacementBond

Assessingandsupportingtheenvironmentalandaseismicperformanceofbuildings

SMBCBusinessSustainabilityAssessmentLoan/PrivatePlacementBond

Assessingandsupportingclients’effortstoensurebusinesscontinuityintheeventofemergenciessuchasearthquakesorfloods

Fiscal 2013

SMBCSustainabilityAssessmentLoan/PrivatePlacementBond

AssessingandsupportingESGactivitiesaswellastheappropriatenessofinformationdisclosure

Subsequently,wederivedfromvarioussimilarassessment-linkedfinancingproductsaimedatassistingclientcompaniesattemptingtoaddresssocialissues.InMarch2014thetotalvalueofsuchassessment-linkedloanssurpassed¥1trillion.SMBChasalsobeenexpandingitsservicesinthisfieldoverseas.InDecember2012itbeganofferingthe“SMBCEnvironmentalAssessmentLoansandPrivatePlacementBonds:MalaysianVersion”tosupportcompanies’environmental-consciousactivitiesinMalaysia,andinNovember2013itsimilarlylaunchedthe“SMBCEnvironmentalAssessmentLoansandPrivatePlacementBonds:ThailandVersion”tosupportcompanies’environmental-consciousactivitiesinThailand.Fromhereonward,wewillcontinuetosupportthefurtherexpansionofourcustomers’activitiesonaglobalscalethroughthedevelopmentofsimilarsolutions.

AppearanceintheNihonKeizaiShimbun’sMorningEditiononDecember10,2014

ProjectInformation Screening

EnvironmentalMonitoring

EnvironmentalandSocialRiskAssessment

CovenantsComplianceEnvironmentalMonitoring

EnvironmentalReview



Japan’sfirstmobilehydrogenstationleaseinitiative

UtilizingJointCreditingMechanism

InvolvementinEuropeanrenewableenergyprojects

SMBCSolarLoan

SMFLwillbeginleasingatotaloffivemobilehydrogenstationstoNipponMobileHydrogenStationServices,ajointventureestablishedthroughinvestmentbyToyotaTsusho,Iwatani,andTaiyoNipponSanso.ThecompanywillleaseJapan’sfirstcommercial-usemobilehydrogenstations.ThiswillbethefirsttimeinJapanthatmobilehydrogenstationswillbeplacedunderaleaseagreement.Withhydrogenmakingmajorstridesasaviablerenewableenergy,fuelcellvehiclesusinghydrogenenergyarealreadyonthemarket,andhydrogenstationsarealsoexpectedtobeincreasinglyestablishedonawidespreadbasis.SumitomoMitsuiFinanceandLeasingwillcontinueitsengagementinthehydrogen-relatedbusinesstohelprealizeanenvironmentalsocietythroughitsleasingoperations.

SMBCprovidesfinancialsupporttodevelopenvironmentallyfriendlyprojectswhile　promotingenergyefficientJapanesetechnologyabroadbyutilizinggovernmentschemessuchasJointCreditingMechanism(JCM),whichaimstoreducegreenhousegasemission.Sincefiscalyear2010,SMBChasconductedvariousfeasibilitystudiesandprovidedfinancingschemesforover20projects,mainlyinAsiaandLatinAmerica.Infiscalyear2014,SMBCparticipatedinafeasibilitystudyonthereductionofCO2emissionsbyreplacingthemercuryprocesswithanionexchangemembraneprocessintheelectrolysisofbrinetomanufacturecausticsodainLatinAmerica.Theionexchangemembraneprocessislesscarbonintensiveandmoreenergyefficientthantheconventionalmercuryprocess.TheMinamataConventiononMercurywasadoptedinOctober2013(theconventionwillenterintoforce90daysafter50countriesratifyit),andtheuseofmercuryinproducingcausticsodaandchlorinemanufacturingprocessisexpectedtobebannedby2025.Duetothistrend,implementationofionexchangemembraneprocessishighlyanticipated.ByutilizingtheJCMscheme,SMBCwillcontinuetosupportenvironmentallyfriendlyprojectsbyintroducingJapaneseenergyefficienttechnologiesandtakeonenvironmentalproblemssuchasclimatechangeandreductionofmercury,therebycontributingtoamoresustainableworld.

Formanyyearsnow,SMBChasbeeninvolvedinstructuringprojectfinanceloansforawiderangeofrenewableenergyprojects,includingwindpowerandwaste-to-energypowergeneration.Europeisattheforefrontofintroducingrenewableenergysupplies.BetweenApril2014andJune2015,SMBCarrangedfinancingforfiveprojectsintheUnitedKingdom(oneonshorewindfarmproject,twooffshoretransmissionprojects,andtwowaste-to-energyprojects),andthreeoffshorewindfarmprojectsinGermany,andoneoffshorewindfarmprojectintheNetherlands.The“Gemini”offshorewindfarmprojectintheNetherlandswilluse150windturbinestosupplycleanelectricitytoapproximately785,000Dutchhouseholds(totaloutputof600MW).SMBCactedasMandatedLeadArrangerforthefinancingoftheproject.TheprojectwasawardedtheDealoftheYearfor2014byindustry-leadingmagazine,Project Finance International.

Utilizingitsfinancingexpertiseinthesolarpowerbusiness,SMBChasbegunofferingtheSMBCSolarLoan,astandardloanproductforsolarpowerprojectsoflessthan2,000kilowatts,inordertomorepromptlyandswiftlyaccommodatethewide-rangingfinancingneedsofcustomerswhoareplanningpowerprojects.TheproductsmoothesthefinancingprocessforprojectsthatreduceCO2emissionsthrougharoutinecheckofprojectfeasibility.SMBCintendstocontinueprovidingproductsthatsupportcustomerstakingonrenewableenergyprojects.

MobileHydrogenstation



Sociallycontributingcreditcard:The“ChikyuniYasashiiCard”

ExhibitionatEco-Products2014

MerchantSalesWebAccountStatementService’stree-plantingcampaign

Cedynaissuesasociallycontributingcreditcardcalledthe“ChikyuniYasashiiCard”tosupportglobalenvironmentalpreservationefforts.Cardholderssimplyusethecardforeverydayshoppingordining,forexample,andaportionoftheamountspentisdonatedbyCedynatoorganizationsinvolvedinglobalenvironmentalpreservationatnocosttothecardholder.Thecardhasbeenissuedsince1991,anddonationsinfiscal2014totaledapproximately¥20.0million.Cumulatively,approximately¥680.0millionhasbeendonated.

ForthreedaysstartingonDecember11,2014,oneofJapan’slargestenvironmentalexhibitions,Eco-Products2014,washeldatTokyoBigSight.Theeventdrawsaround170,000visitorseachyear.SMFGexhibitedathemezonecalled“EnvironmentalBusinessForum.ThisyearwasSMFG’sseventhpresentingaboothattheexhibition.TheboothdisplayedGroupcompaniessuchasSMBC,aswellas15oftheGroup’sbusinesspartners.Inadditiontointroducingvariousinitiativesrelatedtotheenvironmentandfinance,SMFGalsoheldaquizrallyrelatingtoeachcompaniesexhibitioncontentandbroadcastcommercials.TheSMFGboothwastheonlyexhibitionbyamegabank,andwasvisitedbyapproximately4,000visitors—thelargestnumberyet.

SumitomoMitsuiCardconductedacampaignfromDecember15,2014toFebruary28,2015involvingplantingtreesdependentonthenumberofregistrationsrecordedforthe“MerchantSalesWebAccountStatementService,”tolendsupporttotherecoveryfromtheGreatEastJapanEarthquakeandasapartofitsenvironmentalactivities.SMFGplantsatreeforeverythreememberstoresregisteringtochangeovertothe“MerchantSalesWebAccountStatementService.”Atotalof78treeswereplantedinthemunicipalityofMiyakoinIwatePrefecturethroughatreeplantingprojectnamed“PresentTree.”Miyako’sfishingindustryoftheSanrikucoastwasseverelydamagedbytheGreatEastJapanEarthquake.Whenthetreesplantedforthecampaigngrowandmaturetheywillformafish-breedingforestcapableofsupportingtherichmarineresourcesoftheareaandhelpthecity’sfishingindustryrecover.

SMFGboothinEco-Products2014

Cedyna’s“ChikyuniYasashiiCard”

CertificationofplantingfromtheNPO

Iconof“PresentTreeinMiyako”



Participationinenvironmentalpreservationinitiatives

Co-sponsorshipof“EARTHPHOTOCONTEST”2015

Promotingenvironmentalliteracy

Environment-related social contribution activities

SMFGorganized“SMFGClean-UpDay,”infiscal2014.Approximately1,100employeesandtheirfamilymembersvolunteeredtocleanupfourlocationsofTamagawainTokyo,theYodogawainOsaka,SumaBeachinHyogoandFujimae-HigatanearNagoya.Inaddition,KansaiUrbanBankingCorporationparticipatedintheclean-upactivitiesalongtheshoreofLakeBiwainShigaPrefecture,andJRIheldthe“OsakaMarathonClean-Up”eventconcurrentlywiththeOsakaMarathon.Sincefallof2010,SMBCNikkoSecuritiesdesignateda

“GreenWeek”astheweekforenhancementofenvironmentalpreservationandsocialcontribution.Infiscal2014,thecumulativetotalof5,265employeesandtheirfamilymembersparticipatedinthecleanupactivitiesandthecollectionofplasticbottlecaps.Similarly,CedynaSMFL,andSMBCConsumerFinancecontinuouslyconductclean-upactivitiesinthevicinityoftheiroffices.

SMFLhelpssponsortheEARTHPHOTOCONTESTsponsoredbyPresidentInc.andbackedbytheMinistryoftheEnvironment.Forthecontest,environmentalthemeswerechosenbySMFLandtheother11co-sponsors,andphotosappropriateforeachthemeweresolicitedfromthegeneralpublic,withprizesawardedinthenameofeachofthecompanies.Thislong-runningcontesthasbeenheld21times,andthiswastheseventhconsecutiveyearthatSMFLhashelpedsponsorit.ThethemechosenbySMFLwas“BridgesConnectingPeople,LivingOrganisms,andNature,”reflectingtheimportanceoftherelationshipsbetweenpeopleandtheearth’senvironment,whichistherelationshipthatpeoplesharewithplants,animalsandallofnature.TheSumitomoMitsuiFinanceandLeasingPrizewasawardedinJanuary2015tooneofthe642entriesreceived.

Theaward-winningphotoshowsthejoyofpeoplefromthesamesmallcommunityspendingtimetogetheronabridgeoverariver,evokingtheimportanceofrelationshipsbetweenpeopleandbetweenpeopleandtherichnaturalenvironment.

KansaiUrbanBankingCorporationholdsahands-onenvironmentallearningexperienceforchildrenaccompaniedbyparentsonthethemeofLakeBiwa(Japan’slargestlakeandknownas“MotherLakeBiwa”intheKansairegion).Infiscal2014,39parentsandchildrenparticipatingfromShigaPrefectureandotherareasboardedaspeciallycharteredvesselandconductedwater-qualitysurveysandplanktonobservationonLakeBiwabeforetakingatouroftheLakeBiwaMuseum.

Sumabeachcleanupday

Tamagawarivercleanupday

TheLakeBiwahands-onenvironmentallearningexperiencesession

SMFLAwardTitle:“WhileListeningtotheSoundofaMountainStream”Photographer:EtsukoTakemura


Contents / Editorial policy Management Environment Community Management Base

Many issues remain that must be resolved to create a vibrant and sustainable society. In developed countries, these include personnel and successor shortages and economic stagnation caused by low birthrates and aging populations, while emerging countries are facing the widening gap between rich and poor in connection with rapid economic development and urbanization, among other issues. In the financial services field, we are being called upon to promote capacity building and financial inclusion through business activities and conduct social risk assessments that include human rights considerations in connection with financing and investing projects.

Through maximum utilization of its financial functions, the SMFG Group will promote the fostering of industries and human resources for the next generation, improved financial literacy, and market development for sound economic growth in emerging countries. At the same time, the Group seeks to bring about a next-generation society in which everyone inside and outside the organization has a chance to succeed, establishing true diversity as the social norm, in

In financial services, we promote business activities based on guidelines and principles including the UN Global Compact and Equator Principles initiatives. To improve financial literacy, we are promoting initiatives to increase executive and employee participants in financial and economics education programs.


SMFG’s Approach

SMFG’s Management


which there is no discrimination on the grounds of gender or nationality,. In order to effectively promote these activities we have identified the following five issues that SMFG should address. ◦ Support for next generation asset inheritance and business

succession◦ Contributing as a financial institution to emerging countries ◦ Contribution to raising the level of financial literacy◦ Global HR development ◦ Work-life balance and workplace with diversity


NextGeneration






Nursing and Medical Care

◦Specializationandnetworksinnursingandmedicalcareindustry◦Extensiveexperienceoperatinghealthcarefacilities:66facilities

nationwide;4,254employees(asofSeptember30,2014)◦Broadbusinessdevelopmentbasedonpartnershipswith

medicalinstitutions◦Dispatchofpersonnelwithexpertknowledgeofnursingand

medicalcareindustry

Fund Management

◦GeneralfinancialservicescompanyoftheNECGroup◦Developmentofinvestmentandfinancingthroughfunds,etc.

andadvisoryservicescenteringonsubsidiaryRISAPartners,Inc.◦Provisionofexpertiserelatedtofundadministrationandsupport

relatedtotemporaryownershipofpropertiesthroughfunds

Financial

◦Top-classdomestictrackrecordoffinancingforJ-REITs◦J-REITcreditbalanceofapprox.¥789.2billion(asofSeptember

30,2014)◦Broadcustomerbaseasafinancialinstitutionwithapositionas

oneofJapan’smegabanks◦Finance-relatedadviceandreferralsofcustomerswithneeds

relatedtohealthcarefacilitysecuritization

HealthcareREIT

Support for next generation asset inheritance and business succession

InMarch2015,Healthcare&MedicalInvestmentCorporation(HCM),whichwasestablishedbythreemainsponsorcompanies,SMBC,ShipHealthcareHoldingsCo.,Ltd.andNECCapitalSolutionsLimited,waslistedontheFirstSectionoftheTokyoStockExchange.Thisinitiativeisthefirstofitskindbyacitybanktopromotethesupplyoffacilitiesandhousingforseniorsandmedical-relatedandotherhealthcarefacilities,whichisanurgentpriorityinJapanwithitsrapidlyagingpopulation.

◦SocialBackgroundRapidlyAgingPopulationandShortageofHealthcareFacilities

WithJapan’spopulationagingrapidly,theshortageofinfrastructurethatisneededforseniorstolivenormalliveswhilereceivingthemedicalandnursingcaretheyrequirehasalsobeenrecognizedinthegovernment’s“JapanRevitalizationStrategy—JapanisBack,”andaddressingthisandotherissuescausedbyagingisanurgentpriority.

◦RoleofHealthcareREITHealthcareREITaimtoconnectcapitalmarketswiththenursingandmedicalcareindustries,whichareexpectedtoexpandassocietaldemandforsuchservicescontinuestoincrease,throughstableinvestmentandownershipofhealthcarefacilities.

◦ContributingtoCustomers,SocietyThroughestablishmentofthishealthcareREIT,SMBCisnowabletomeetcustomerneedsthatitwaspreviouslynotabletomeet.Forexample,needsrelatingtothesecuritizationofhealthcarefacilitiesownedbycustomersandwiththedevelopmentofhealthcarefacilitieswithaviewtoownershipbyahealthcareREIT.SMBCwillcontinueitsaggressivepursuitofinnovativeinitiativeswithoutbeingtiedtoconvention,aimingtomeettheindividualneedsofitscustomers.Indoingso,SMBCwillactivelyworktotranslateitsinitiativesintosolutionstotheissuesfacedbysociety.

OurGroupcompaniesconductedlessonvisits,seminars,andotheractivitiestopromoteimprovedfinancialliteracytoawiderangeofgenerationsfromelementaryschoolstudents,toworking-ageadultsandseniors.WealsoworkedtodevelopglobalhumanresourcesthroughfoundationsinandoutsideofJapan,andSMBCbeganhandlingwith“SMBCNadeshikoFundandPrivatePlacementBonds”tosupportinitiativesforpromotingmoreworkingopportunitiesforwomen.Infiscal2015,weundertookCSRactivitiestoaddresslocalissuesinAsiawiththegoalofbeinganAsia-centricbank.WealsomadeaGroupwideefforttopromotebetterfinancialliteracy.

Infiscal2014,aspartofoursupportforinheritanceofassetsandbusinessesbythenextgeneration,weestablishedtheHealthcare&MedicalInvestmentCorporationwithSMBCasthemainsponsortopromotetheprovisionoffacilitiesfortheelderlyandmedicalfacilities.Moreover,inourcontributionstoemergingcountries,whichareanimportantarea,PTBankSumitomoMitsuiIndonesiastartedtrainingequipmentsupportforlocalmaritimevocationalschoolandnursingvocationalschool,andtheNewDelhiBranchofSMBCinIndiastartedsupportactivitiesforlocalelementaryschools.


REIT

Capitalmarkets Nursingandmedicalcareindustries

InvestorsEnjoystablereturns

OperatorsSpecializedinhealthcare

facilityoperationsIncreasedfinancing

options

Facility usersSecurestablehousing

Health care facility investment and

ownership



UnitedCompanyEffortstoPromoteNISA

YangonBranch

SigningaMemorandumofUnderstandingonCSRActivitieswithIndonesianCompany

PromotingCSRActivitiesinIndia

Contributing as a financial institution to emerging countries

SMBCNikkoSecuritiesestablishedtheNISAPlanning&PromotioninMarch2014withthegoalofcontinuingitseffortstopromotetheNipponIndividualSavingsAccountprogram(“NISA”),ataxexemptionsystemforsmallsumofinvestments.ThecompanywillpromotethespreadofNISAamongthosewithlimitedornoexperienceofinvesting.WithregardtoJuniorNISA,whichistobeestablishedin2016,thecompanyisholdinginformationseminarsatallofitssalesofficesthroughoutJapantoexplainhourtosupportassetformationforthenextgeneration,suchasclient’schildrenandgrandchildren.Moreover,theNikkoContactCenterhasestablishedaJuniorNISADeskinadditiontothededicatedhotlineforNISA,toreceiverequestsforconsultation.SMBCNikkoSecuritieswillcontinuetopromoteunderstandingofNISAamongmorepeoplegoingforward,aimingtoincreaseusagethroughpenetrationfromamedium-tolong-termperspectiveandpromotingactivitiestohelpincreasefinancialliteracy.SMBCFriendSecuritiesconductsactivitiestopopularizeandpromotetheNipponIndividualSavingsAccount(“NISA”)program.Infiscal2014,thecompanyheldseminarsonweekendsandholidays,explainedthebasicsoftheNISAprogram,andmetindividuallywithpeopleforconsultationsataspeciallyestablishedNISAcounterinordertomakeit

OntheMarch26,2015,SMBCandPTBankSumitomoMitsuiIndonesiasignedamemorandumofunderstandingonpromotionofCSRactivitiesinIndonesiawiththeDjarumFoundationintheDjarumGroup,oneofIndonesia’smajorcorporateconglomerates.Withthesigningofthememorandum,SMBCmadecontributionsfirstinthefieldofeducation,donatingtrainingequipmentsuchasmarinesimulatorsandshipenginesforamaritimevocationalschool,andnursingsimulatorsforanursingvocationalschool.Goingforward,weintendtocarryoutCSRactivitiesinIndonesiatoraisethequalityofnursingcareeducation.ThesewillincludeacceptingpersonnelincoordinationwithJapanesemedicalinstitutionsandprovidingsupportforJapaneselanguageeducation.

TheSMBCNewDelhiBranchinIndiabeganapartnershipwiththelocalNGODrishteeFoundationforthepurposeofpromotingCSRactivitiesprimarilyinruralareas.Theorganizationwaschosenasthebank’sCSRpartnerduetoitsworkinIndianruralareasover15years,itscollaborationswiththeStateBankofIndia,whichisthecountry’slargest,anditstrackrecordofprojectswithnumerousJapan-affiliatedcorporations.SMBCisactivelypromotinglocalinitiativesthatincludelocalstaffmembershelpingtoholdfielddaysatelementaryschools.

SMBCNikkoSecurities“JuniorNISAGuidbook”

PamphletontheNISAprogramdistributedbySMBCFriendSecurities

Signingthememorandumofunderstanding

Donatedmarinesimulator

Eventwithexecutiveandemployeeparticipation

SMBCobtainedapprovaltoopenabranchinYangon,Myanmar,whichcommencedoperationsonApril23,2015.

easierforcustomersintheirfortiesandfiftiestoparticipate.Inaddition,forexistingcustomers,thecompanyfollowsupwithcallsfromitscallcenteronnon-workdaysorbysendingoutinstructorsfromitsspecializedNISAdepartmenttogiveseminarsforcustomersheldatbranches.AllofSMBCFriendSecuritiesisworkinginthiswaytopromotefurtherutilizationoftheNISAprogram.BasedontheJuniorNISAprogramthatwillbeintroducedin2016,thecompanyisplanningtoholdseminarsforcustomersandwillactivelyworktopromotefurtherutilizationbyexistingcustomersandassetinheritanceacrossgenerations.

ThiswasthefirstcasetoreceiveapprovalsinceitbecamepossibleforforeignbankstoopenbranchesinMyanmar.SMBCalsobecamethefirstforeignbanktoupgradeitsrepresentativeofficeinMyanmartoasub-branchin2012.Thesub-branchhadbeenprovidinginformationandconductingsalesactivitiesinthecountry,butwiththeopeningoftheYangonBranch,thebankwillnowbeabletoconductbankingoperations,includingdepositaccounts,loansandcurrencyexchange.InMyanmar,whereincreasinginvestmentisexpectedespeciallyintheThilawaSpecialEconomicZone,SMBCwillsupportcustomerbusinessactivitieswithagreaterrangeofservices,andthroughitspartnershipwithalliancepartnerKanbawzaBankLimited,thecountry’slargestprivatebank,itwillworktofurtherenhancebankingservicesandcontributetothecountry’sdevelopment.



InitiativesforFinancialandEconomicEducation

Workingtowardtheformationofasoundconsumerfinancemarket

Establishmentof“RisingSquare”

Contribution to raising the level of financial literacy

TherespectivebranchesofSMBCaccept,wheneverpossible,studentsofelementaryschooluptohighschoolvisitingthebranch,inadditiontoorganizingavocationalworkshopforelementaryschoolstudentscalled

“NatsuyasumiKodomoGinkoTankentai.”Furthermore,thebanksupportsdiversefinancialandeconomiceducationalactivities,includingpublishingabookforelementaryschoolstudentstitled“WhatDoesaBankDo?,”co-sponsoringKidZania(avocationalexperiencethemeparkforchildren),andsupportingShinagawaFinancialPark(economictrainingprogramsforjuniorhighschoolstudents).SMBCNikkoSecuritiesheldthe“NikkoFamilyExcitingExperienceDay”eventduringsummerholidays,inwhich1,685elementaryschoolstudentsandtheirfamiliesparticipatedinfiscal2014.SMBCConsumerFinanceofferslecturesoneconomyandfinanceforvariousgenerations.KansaiUrbanBankingCorporationorganizesatourofthebankforelementaryschoolstudentsduringthesummerholidays,andalsooffersaworkexperienceprogramforjuniorhighschoolstudents.Inaddition,SMBC,SMFL,SMBCNikkoSecurities,SumitomoMitsuiCard,JRI,MinatoBank,andKansaiUrbanBankingCorporationsendinstructorstoteachclassesatuniversities.

SMBCConsumerFinanceengagesinfinancialandeconomiceducationalactivitiesinordertoformsoundconsumerfinancemarketssothatstudents,thebearersofthefuture,andlocalresidentsalikeobtainaccurateknowledgewithrespecttomoneyingeneralandlearntomakeappropriate

AtournewSMBCEastTower,whichopenedinthesummerof2015,weestablished“RisingSquare,”aseriesofspacesthatvisuallypresentthecompany’scommitmenttoengaginginglobalenvironmentalissuesthroughfinance.The“TangibleEarth”onthefirstfloorshowssimulationsofglobalwarming,typhoons,earthquakes,tsunamis,andmigratorybirds,andintroducestherelationshipbetweentheglobalenvironmentandfinance.“TheMuseumofFinance”onthesecondfloorisaninteractivemuseumthatgivesvisitorstheopportunitytolearnabouttheconnectionsbetweenfinanceandsocietytranscendingtimeandplace.Thespacesarealwaysopentothepublicandarealsousedaswellforfinancialandeconomicseducationprogramsforelementaryschoolstudents.

TangibleEarth

Natsuyasumi Kodomo Ginko Tankentai :Practicingcountingpapermoney

Natsuyasumi Kodomo Ginko Tankentai :Attendingclassatabankbranch

TheMuseumofFinance

SeminarattheCustomerServicePlaza

decisions.Ledbythe18nationwideCustomerServicePlazas,thecompanyconductsseminarsonthreethemesinparticular,lifeplanningandhouseholdfinances,loansandcredit,andfinancialpitfalls.Atotalof2,893seminarswereheldinfiscal2014and156,615peopleattended.Sincetheseminarsbeganin2011,cumulativelyover360,000peoplehaveparticipated.



HumanResourceDevelopmentbyFoundations

SMBCNadeshikoLoanandPrivatePlacementBonds

Initiativesforpromotingwork-lifebalance

Tokyo2020GoldPartner

Global HR development

Work-life balance and workplace with diversity

SMBCFoundationforInternationalCooperationprovidesscholarshipeveryyearto7-8studentscomingfromAsiatoattendgraduateschoolsinJapanforthepurposeofdevelopinghumanresourceswhichmaycontributetoeconomicdevelopmentofdevelopingregionsandinternationalexchangeactivities.TheSMBCGlobalFoundation,basedintheUnitedStates,hasprovidedscholarshipsformorethan6,000studentsstudyinginAsiancountriessince1994,andalsoprovidessupportforeducationaltripstoJapanorganizedbyahighschoollocatedinHarlem,NewYorkCity,andtheparticipationinschoolbeautificationprogramsbyvolunteersfromSMBC.ThefoundationalsoprovidesmatchinggiftsfordonationsbySMBCemployees.TheHanoiBranch,HoChi

SMBCdeveloped“SMBCNadeshikoLoanandPrivatePlacementBonds”inJanuary2015tosupportclientswhopromoteinitiativesforparticipationandadvancementofwomeninbusiness.Alongwithprovidingloans,theJapanResearchInstitutewillevaluatethestatusofinitiativestakenbytheclientforwomen’sparticipationandadvancementinbusiness,andprovideinformationonprecedentsresolvingissuesofsuchinitiatives.SMBCcontinuestofinanciallysupportclients’initiativesforpromotingparticipationandadvancementofwomeninbusiness.

SMBCisengagedinvariouseventsforpromotingwork-lifebalance.AttheChildren’sVisitationDay,whereemployees’childrencanlearnaboutbankoperations,therewere75groupstotaling194participantsinTokyoandOsaka.Thebankalsoheldthe“GoHomeEarlywithFamilyEvent,”whereemployees’familiesareinvitedtovisittheworkplaceandleavetogetherattheregulartime.Therewerearound1,400participantsinthiseventthroughoutJapan.

SumitomoMitsuiFinancialGrouphasmadeanagreementtobeaTokyo2020GoldPartner(Bank),thehighestrankofdomesticsponsorfortheupcoming2020TokyoOlympicandParalympicGames.

AppearanceintheNihonKeizaiShimbun’sMorningEditiononFebruary26,2015

MinhBranch,andBangkokBranchalsoprovidedassistanceforstudentsattendingfiveuniversitiesincludingVietnamNationalUniversityandHanoiUniversity,andhavesupportedatotalof383studentssince2007.

JapaneducationaltripforhighschoolstudentsinHarlem(infrontoftheSMBCHeadOffice)

InternationalstudentceremonyattheHanoiBranch

SMBC’s“GoHomeEarlywithFamilyDay”

ParticipantsinSMBC’s“Children’sVisitationDay”withPresidentTakeshiKunibe

SMFG’svisionforthenextdecadeis“Wewillbecomeaglobalfinancialservicesgroupthat,byearningthehighesttrustofourcustomers,leadsthegrowthofJapanandtheAsianregion.”Goingforward,weintendtoactivelycontributetothestableadministrationoftheTokyoOlympicandParalympicGamesandtothefurtherstrengtheningofJapan’snationalteams.


Contents / Editorial policy Management Environment Next Generation Management Base

The very survival of local communities in Japan and other countries is under threat due to phenomena such as natural disasters of unprecedented severity and the outflow of young people. There is a need to build communities that can mitigate the impact of natural disasters and bounce back from such disasters through mutual help and support.Another urgent priority is the creation of a society where elderly people and people with disabilities can live in safety and security. The financial services industry is being called to recognize its responsibilities and take action not only in the areas where it has operations, but in wider communities including borrowers and investees.

The Group recognizes that it is important to consider the public nature of the financial institution and contribute to the development of society through business operations.In addition to the contribution to society through daily business operations, we should assist in making the better society in the future by pursuing diverse social contribution activities in order to fulfill responsibilities as a “responsible corporate citizen.”

In order to lead the form of social participation by each our officer and employee, we emphasize the leadership role of our officers and employees, aiming to increase the number participating in volunteer activities by engaging in social contribution activities.


SMFG’s Approach

SMFG’s Management

W Policy for social contribution activities / The backbone for our social contribution activities http://www.smfg.co.jp/english/responsibility/community/


In order to effectively promote these activities we have identified the following three issues that SMFG should address.◦ Contribute to achieving and developing safe and secure

communities◦ Community-based activities led by officers and employees◦ Efforts to solve social issues by collaborating with NGOs

and NPOs

Toward a healthy and distinctive community in which everyone can participate

Community









SupportFundforGreatEastJapanEarthquake

Reconstruction for the Great East Japan Earthquake

SMBCestablishedthesystemsolelyutilizedforthe“GreatEastJapanEarthquakeSupportFund”formakingdonationstothedisasteraffectedareasbydeducting¥400fromemployee’smonthlysalaries.Infiscal2014,wemadedonationscollectedfromouremployeesandthematchingdonationsmadebythebanktoanNPOwithwhichexecutivesandemployeescooperatedforvolunteeractivitiesinthedisaster-affectedareas.SinceMay2011,SMBChasbeenregularlyconductingvolunteeractivitiesparticipatedbyexecutivesandemployeesoftheGrouptosupportdisasteraffectedareasmainlyinIshinomaki,Watari-cho,andHigashi-Matsushimain

Tohelpachievesafeandsecurecommunities,wehavebeenpromotinguniversaldesignanduniversalservice.Atthesametime,wehaveenteredfull-fledgedtrainingofsupportersforclientssufferingfromdementia,andhavecompleteddeploymentofdementiasupportersatallourlocations.Infiscal2015,wewillconductfurtheractivitiestoaddresssocialissuesinandoutsideJapan,andtorespondtochangingneedsinareasaffectedbytheGreatEastJapanEarthquake.Asafinancialinstitution,wealsointendtocreateanenvironmentthatallofourcustomercanusewithconfidenceandcontinueoureffortstoimproveservices.

Infiscal2014,wemadedonationstoorganizationstacklingvarioussocialissuesandcontinuedtoundertakevolunteeractivitiesincollaborationwithvolunteergroups.TheseactivitieswereconductedundertheSMBCVolunteerFund,whichisfundedbydonationsdeductedfromthemonthlysalariesofvolunteeringexecutivesandemployees.Furthermore,employeesfromallGroupcompaniesparticipateinvolunteeractivitiesinareasaffectedbytheGreatEastJapanEarthquake.Activitiesincludevisitingtemporaryhousing,supportingthefishingindustry,tree-planting,andtowncreation.Inaddition,wehavelaunchedanewvolunteeractivityofconductingenvironmentalsurveysintsunami-devastatedareas.


MiyagiPrefecture.Over700intotalofemployeesandtheirfamilymembersparticipatedintheactivities.SocialmeetingstointeractwiththepeopleevacuatedtoTokyofromdisasteraffectedareashavebeenregularlyheld,withparticipationbymembersofSMBC’svolunteeringsociety,YUI.SMBCFriendSecuritieshasbeenindependentlyconductingthe“recoverysupportvolunteerprogram”sinceJuly2014.Theprogramhasbeenruntwicenow,withactivitiesprimarilyheldatthecityofIshinomaki,MiyagiPrefecture.Atotalof35stafffrombranchesthroughoutJapanparticipated.Theactivitiesincludeassistingwiththefishingindustry,whichhassufferedashortageofworkerssincetheearthquake,andinteractingwithresidentslivingintemporaryhousing.



Creating branches that people can visit with confidence

Introduction of the COMUOON tabletop communication support system

Universal design initiatives

Contribute to achieving and developing safe and secure communities

SMFG is promoting the creation of branches that the elderly and people with disabilities can visit with confidence.We have approximately 1,800 care service assistants, and in fiscal 2014 we began full-scale training of cognitive impairment supporters to prepare for the aging of society. As of March 31, 2015, there are approximately 5,600 specialized staff members to assist people with cognitive impairment assigned mostly at its branches.

Minato Bank is promoting efforts to create branches that are customer-friendly, such as aiming to provide services from the perspectives of all kinds of customers. These initiatives address both hard and soft aspects. The bank’s efforts in terms of hard aspects include deploying

“ATMs equipped for people with visual impairment,” which have audio guidance functions provided through a handset. They have also installed “color universal design reception number displays” that are easy for elderly people and people with visual impairments to see. For customer with auditory impairments, the bank has installed hearing aids at the counters. In terms of soft aspects, the bank has deployed at least one staff member at each branch who has completed practical training on universal service and a course for training supporters for people with cognitive impairment. As the

“Service Care Managers” within the bank, these staff play a central role in supporting elderly customers or those with physical disabilities. Kansai Urban Banking Corporation has also taken action to introduce services and equipment at its counters and in its lobbies to enable customers to visit branches with confidence.

Cognitive Impairment Seminar for newly-hired employees

Cognitive Impairment Supporter Seminar

Initiatives at Kansai Urban Banking CorporationIn summer 2015, SMBC introduced the COMUOON tabletop communication support system at 10 branches. The system works by assisting the speaker instead of the hearing-impaired listner.Considering communication as a primal issue, we will strive to be a kind financial institution for every customer.

COMUOON tabletop communication support system

ATM

ATMs for the visually-impaired

“Ear” marks

Communication boards

Writing boards

Sponge gripsReading glasses

Priority seats

Cane holders

Hearing aids

OfficeCounters

Tables

Sofas



Participationinthe“TABLEFORTWO”Program

SMBCVolunteerFund Socialcontributionthroughproductsandservices

ActivitiesforexecutivesandemployeesinandoutsideofJapan

Community-based activities led by officers and employees

Efforts to solve social issues by collaborating with NGOs and NPOs

SMBCparticipatesintheprogramwhichprovidesdonationstothenon-profitorganizationofthe“TABLEFORTWOInternational”tofundschoolmealsinemergingcountries,

foreverymealpurchasedfromthehealthymenuforlunchatthecompanycafeteriasnationwide.Infiscal2014,98,738mealsweredonatedthroughtheprogram.SMFL,SMBCNikkoSecurities,SMBCFriendSecurities,SumitomoMitsuiCard,andSMBCConsumerFinancearealsooperatingtheprogramattheirheadofficecafeteriaandvendingmachines.

SMBChasasystemforvolunteeringexecutivesandemployeestohavefrom¥100upto¥1,000deductedfromtheirmonthlysalariestodonatetovolunteerorganizations.Morethan11,000employeesparticipateinthisprogram,asofMarch2015.Theorganizationsareselectedbasedonthoroughinvestigationsanddiscussionsbythepanelofexpertsandemployees.Infiscal2014,donationsweremadeto31organizationswhichengageinresolvingsocialissuesinJapanandoverseas.

Throughitscreditcardoperations,SumitomoMitsuiCardprovidescardholderswithopportunitiestomakecontributionstosocietywithoutinconvenience.SumitomoMitsuiCardcollecteddonationsfromcardholdersthroughtheWorldGiftsPointServicepointprogramforcardholdersofVJAgroupcompaniestoprovidetoUNICEF,UNESCO,theWorldWildlifeFundJapanandtheWorldFoodProgram.SumitomoMitsuiCardmadesomedonationstoUNICEFaswell.Italsoacceptsonlinecreditcarddonations,anditissuessocially-contributingtypecreditcardsanddonatesthepartoftheamountspentbyclientsusingsuchcreditcards.Cedynaisalsoconductingsocialcontributionactivitiesthroughitscreditcardoperationstogetherwithcardholders.Thecompanyhassetupa“donation”optionfortherecipientofpointsissuedbasedontheusageofthecreditcards,therebyprovidinganopportunityforcardholderstoparticipateinsocialcontributionactivities.CardholderscansupportbyselectinganoptioninwhichthepointstheyaccumulatethroughuseofthecreditcardsaredirectedintodonationsforsupportingorganizationsdesignatedbyCedynathataretacklingvarioussocialproblems.Thetotalamountofdonationsmadeinfiscal2014cametoroughly¥8million.

Examples of donation recipients

◦JapanOrganizationswhichprovidesupportforawareness-raisingactivitiesforthepreventionofchildabuse,childcaresupportactivities,foodassistanceprogramforpeoplelivinginpoverty,andsupportpeoplewithdisabilitiestobecomeself-sustained,andotheractivities.

◦OverseasOrganizationswhichprovidesupportforre-forestationactivitiesinIndonesiaandMalaysia,healthsupportprogramsforschoolsinEastTimor,andagriculturalvillagesinZambiatobecomeself-sustained,andotheractivities.

SMBChasbeenpromotingitsownindependentinitiativesthataretailoredtotheissuesandcultureofeachcountryandregion,bothinanoutsideofJapan.InJapan,thebankpresenteditsexecutivesandemployeeswithvolunteeractivitiesofNPOsandotherorganizationsthatworktoresolvesocialissues,andconductedaprogramforstaffparticipationtosupporttheactivitiesoftheseorganizations.Overseas,forexample,SMBC’sSingaporeBranchhelditsfirstblooddonationdrivesinfiscal2012,with10employees

participating.Infiscal2013,thebranchinitiatedvariousdonationdrivesandvolunteeractivitiesinvolvinglocalchildrenandtheelderly.

AreportingmeetingoftheSMBCVolunteerFund

AsocialeventatSingaporeBranch

AcertificateofappreciationforaGoldSupporter


Contents / Editorial policy Management Environment Next Generation Community

With the formulation of the Japan’s Stewardship Code and Corporate Governance Code, we need to pursue even higher management transparency and efficiency and to promote activities with a focus on dialog with stakeholders. Due to its highly public nature, the financial services sector is required to implement thorough risk management to underpin its responsibility for business continuity and to ensure highly transparent and fair products and services for customers.

The Group is determined to promote initiatives to create value for society under the three key issues, the environment, the next generation, and the community. The company is promoting “key issues to be addressed on a solid management base” as a foundation for all corporate activities. To promote this effectively, we have identified the following eight issues to be addressed.

Each responsible business unit has set up a PDCA cycles based on various policies and structures.

Recognizing social issues

SMFG’s approach

SMFG Management

W Solid Management Structure http://www.smfg.co.jp/english/responsibility/organization/

W Management to Improve CS and Quality http://www.smfg.co.jp/english/responsibility/cs/index.html

W Five Goals of SMBC’s Human Resources Development http://www.smfg.co.jp/english/responsibility/employee/index.html


◦Interaction with stakeholders◦Customer satisfaction◦Pleasant workplace and work environment◦Corporate governance◦Risk management◦Rigorous information management◦Fair business practices and competition◦Severing any relations with anti-social forces

Keyissuestobeaddressedonasolidmanagementbase

http://www.smfg.co.jp/english/responsibility/organization/

http://www.smfg.co.jp/english/responsibility/organization/

http://www.smfg.co.jp/english/responsibility/cs/index.html


http://www.smfg.co.jp/english/responsibility/employee/index.html








W Communication with Customers (Japanese only) http://www.smfg.co.jp/responsibility/cs/activities/

FundamentalapproachforCSandQuality Improvingtheconvenienceofafter-hoursATMservices

ManagementtoimproveCSandQuality

Trainingemployees Workenvironment

Customer satisfaction

Pleasant workplace and work environment

SMFGshallimplementmeasurestoimproveCSandQualitywhilecooperatingamonggroupcompaniesbysettingforthasoneofourmanagementprinciples:“Tofoundourownprosperityonprovidingvaluableserviceswhichhelpourcustomerstobuildtheirprosperity.”

◦Eliminatingtransactionfeesonafter-hoursdepositsPreviouslyinSMBC,atransactionfeeof¥108waschargedfordepositsatATMsoutsidethehoursof08:45-18:00andonSaturdays,Sundays,andpublicholidays;however,sinceNovember20,2014,individualcustomersandindividualbusinesscustomershavebeenabletomakedepositsfreeofcharge.

◦Startofafter-hoursdepositsbypassbookOnDecember3,2014,SMBCintroduced24-hourATMdepositsusingapassbookforindividualcustomersandindividualbusinesscustomers.(TheserviceisunavailablefromSunday21:00toMonday07:00eachweekduetosystemmaintenance).

SMFGregularlyholdsmeetingsforthe“GroupCSCommittee”whichischairedbytheseniormanagementexecutiveofthegeneralaffairssectionoftheGroupforpromotingcooperationamonggroupcompanies.ThecommitteediscussesandexchangesopinionsandideasregardingopinionsandsuggestionsreceivedfromourclientsorCSpromotionpolicies,anditstrivestofurtherimproveCSandQualityoftheentireGroup.

Todevelopprofessionalandspecializedemployeeswhocanprovideourclientswithhighlyvaluedproductsandservices,wearefurtherstrengtheningthetrainingsystemsinrespectiveGroupcompanies.

◦Jointtrainingcoursesandget-togethersprovidedforSMFGemployeesateachpromotionallevel

ToimproveunderstandingoftheSMFGGroup’soverallimageanditsmanagementpoliciesandtostrengthenthesenseofunityandtogethernessamongtheGroup’sstaffasapartof“TeamSMFG,”weconductjointtrainingprogramsforemployeesfromtheGroup’seightmajorcompanies*.Weconductjointtrainingseminarsandsportseventsfornewly-hiredemployees,whileforourexecutiveofficersandmanagement-levelemployeeswealsoprovidetheSMFGJointTrainingCourse.

◦Firstintroductionofaworkassistancerobotatafinancialinstitution

InMay2015,SMBC’ssubsidiarySMBCDeliveryServiceCo.,Ltd.becamethefirstfinancialinstitutiontointroducetheRobotSuitHAL®forLaborSupport(Lumbar)developed,manufactured,andsoldbyCYBERDYNE,Inc.SMBCDeliveryServiceisacompanythatcollectsanddeliverscash.ItismainlyinvolvedinallocatingcashthatistransportedtoSMBCbranches.Thetransportedcashisratherheavy,andthisoftenplacesaphysicalstrainonemployeeswhentheyarecarryingit,particularlysenioremployees.SMBCandSMBCDeliveryServicethereforedecidedtoimprovetheworkingenvironmentandtomakeiteasyforevensenioremployeestoworkbyrelievingthephysicalload.Tothisend,theyintroducedRobotSuitHAL®forLaborSupport(Lumbar)tolightentheloadonthelumbarareawhenworking.*Theeightmajorgroupcompaniesare:SMBC,SumitomoMitsui

FinanceandLeasing,SMBCNikkoSecurities,SMBCFriendSecurities,SumitomoMitsuiCardCompany,CedynaFinancialCorporation,SMBCConsumerFinance,andtheJapanResearchInstitute.

RobotSuitHAL®forLaborSupport(LumbarType)

SMFGJointSportsdayeventforNewRecruits

http://www.smfg.co.jp/responsibility/cs/activities/




Initiativesonhumanrights Achievinghealthyandfulfillinglifestyles

Basicpoliciesforriskmanagement Riskmanagementsystem

Corporate governance

Risk management system

SMFGanditsGroupcompaniesfollowtheSMFGmanagementphilosophysetforthastheuniversalguidefortheGroupmanagementandconsiderthisphilosophyasthefoundationforanycorporateactivities.Weareworkingtoimprovetheeffectivenessofcorporategovernanceasweconsiderstrengtheningandenhancementofcorporategovernanceasoneofthetopprioritizedissuesinordertoachievethemanagementphilosophy.Further,SMFGestablishesits“SMFGCorporateGovernanceGuideline”asitsprinciplesandguidelinestobereferredtoforcorporategovernance,inordertoimprovesustainablegrowthandmedium-andlong-termcorporatevaluesbypreventingtheoccurrenceofmisconductandunsoundcorporatesituationsandthroughachievingeffectivecorporategovernancewiththesemeasures.

SMFGparticipatesinthe“UnitedNationsGlobalCompact,”andalsoendorsesandsupportsits10Principlesintheareasofhumanrights,laborstandards,environment,andanticorruptionmeasures.InadditiontothestudysessionsheldbySMBConthemessuchasforcedlaborandchildlabor,eachGroupcompanyisalsoimplementingmeasurestofurtherenhanceawarenessofindividualhumanrightsbyorganizinghumanrightsawarenessstudysessions,andinvitingemployeestoreflectandcomeupwithanindividualhumanrightsstatement.

SMFGcompaniespursuenumerousinitiativesthatgiverisetosafeandpleasantworkplaceenvironments,andfurthermorehelpemployeesachievehealthierandmorefulfillinglives.Forinstance,SMBChassetuptwohealthsupportcenters,oneinTokyoandtheotherinOsaka,taskedwithoverseeingemployeehealthcare.Thecentersarepermanentlystaffedwithoccupationalhealthphysicians,nurses,publichealthnursesandotherhealthcareprofessionals,Thecentersalsohaveon-sitehealthclinics.SMFGcompaniesalsoforgesoundmanagement-workerrelationsthrougheffortsthatincludeholdingregulardiscussionswithrespecttolaborconditionsandhumanresourcepractices.

Asrisksinthefinancialservicesincreaseindiversityandcomplexity,riskmanagement—identifying,measuring,andcontrollingrisk—hasneverbeenmoreimportantinthemanagementofafinancialholdingcompany.SMFGhasestablishedthebasicprinciplesofGroup-wideriskmanagementinthe“RegulationsonIntegratedRiskManagement.”Intheregulations,weidentifythelocationandthetypeofrisktobemanagedinaccordancewithstrategicgoalsandbusinessstructures,andthenmanageeachriskappropriatelyaccordingtoitscharacteristics.

W Our Mission http://www.smfg.co.jp/english/aboutus/principles.html

W Corporate Governance (Our Position on Corporate Governance, The SMFG Corporate Governance System) Annual Report 2015 http://www.smfg.co.jp/english/investor/library/annual/h2703annu_pdf/h2703_e_17.pdf

W SMFG Corporate Governance Guideline http://www.smfg.co.jp/english/aboutus/pdf/cg_guideline_e.pdf

W Corporate Governance Report (Japanese only) http://www.smfg.co.jp/aboutus/pdf/cg_report.pdf

W Risk Management (Basic Approach, Risk Management System) Annual Report 2015 http://www.smfg.co.jp/english/investor/library/annual/h2703annu_pdf/h2703_e_14.pdf

SMFGhasestablishedthe“PrincipalPolicyforGroupRiskManagement,”whichisdeterminedbytheManagementCommitteebeforebeingauthorizedbytheBoardofDirectors.TheManagementCommittee,thedesignatedBoardmembers,andtherelevantriskmanagementdepartmentsperformriskmanagementaccordingtothebasicpolicies.RiskmanagementsystemsareinplaceatindividualGroupcompaniesinaccordancewithSMFG’sGroupwidebasicpoliciesforriskmanagement.TheCorporateRiskManagementDepartmentcomprehensivelyandsystematicallymanagesallcategoriesofriskincooperationwiththeCorporatePlanningDepartment,bymonitoringtheconductofriskmanagementatGroupcompaniesandprovidingguidancewhennecessary.



http://www.smfg.co.jp/english/investor/library/annual/h2703annu_pdf/h2703_e_17.pdf





http://www.smfg.co.jp/english/aboutus/pdf/cg_guideline_e.pdf

http://www.smfg.co.jp/english/aboutus/pdf/cg_guideline_e.pdf

http://www.smfg.co.jp/aboutus/pdf/cg_report.pdf

http://www.smfg.co.jp/aboutus/pdf/cg_report.pdf







Rigorous information management

Fair business practices and competition

Severing any relations with anti-social forces

AtSumitomoMitsuiFinancialGroupandallthecompaniesintheSMFGGroup,wepracticeappropriatesafekeepingandutilizationofourcustomers’personaldatainaccordancewiththeSMFGPrivacyPolicythatstipulatesourpolicytoprotectandtoadequatelyusepersonalinformation.Withregardtosystemforthemanagementofourcustomers’personalinformation,theBoardofDirectorshasmadeimportantresolutionsregardingtheprotectionof

TheComplianceManualoftheSumitomoMitsuiFinancialGroupstipulatesthattheGroupmustconductcompetitiveactivitiesinthemarketinafairmanner.Inaddition,eachGroupcompanylaysdownrulestofacilitateandencouragetheobservanceofalllegislationrelatingtothatcompany’slineofbusiness,includinglawsrelatingtothepreventionofmonopolies,truth-in-advertising,subcontracting,andunfaircompetitionprevention,andthe

SumitomoMitsuiFinancialGrouphassetdownabasicpolicystipulatingthatallGroupcompaniesmustuniteinestablishingandmaintainingasystemthatensuresthattheGroupallowsnorelationshipwhatsoeverwithanti-socialforcesorrelatedindividuals.Specifically,allcompaniesmustpreventdamagesfromanti-socialforces,sothatnobusinesstransactionsaremadewithanti-socialforcesorindividuals.Allcontractualdocumentsortermsandconditionsmustincludecontractsandtermsoftransactionsclausesregardingtheexclusionofanti-socialforcesfromanybusinessrelationship,andintheeventthatitisdiscoveredsubsequenttothecommencementofadealortradingrelationshipthattheoppositepartybelongstoorisaffiliatedwithananti-socialforce,weundertakeappropriateremedialactionbycontactinganoutsideinstitutionspecializinginsuchmatters.

W Compliance (Basic Approach, Compliance System) Annual Report 2015 http://www.smfg.co.jp/english/investor/library/annual/h2703annu_pdf/h2703_e_19.pdf

customerdata.TheBoardregularlymonitorstheprogressbeingmadeinmeasurestoensuresuchprotection,andordersactiontobetakenwhendeemednecessary.WealsoworkconstantlytokeepabreastofdevelopmentsinthefieldofinformatizationthroughimprovementstoSMFG’spersonalinformationprotectionmanagementsystemandmeasurestakentoenhanceinformationprotection.

managementsofallthecompaniesworkinvariouswaystoensurethattheiroperationsareinaccordwiththeprinciplesoffairtradingandfaircompetition.Forexample,SMBChaspublishedan“AntimonopolyActManual,”andtopreventunfairtradepractices,thebank’smanagementtakesstepstoensurethatallstaffarefullyinformedregardingsuchmattersascartelsandtheabuseofdominantbargainingpositions.

BasicPolicyforAnti-socialForces

1.Completelyseveranyconnectionsorrelationswithanti-socialforces.

2.Repudiateanyunjustifiableclaims,anddonotengageinany“backroom”dealswhatsoever.Further,promptlytakelegalactionsasnecessary.

3.Appropriatelyrespondtoanyanti-socialforcesasanorganizationbycooperatingwithoutsideprofessionalagencies.







InJapanandoverseas,thereisadrivetobuildsystemsandframeworksforcreatingsustainablesocieties.Corporatemanagementhasamajorroletoplayinthisaswell.FollowingtheintroductionoftheJapaneseStewardshipCodeinFebruary2014,theCorporateGovernanceCodethathasbeenappliedtolistedcompaniessinceJune2015summarizesandclearlysetsoutinitiativesforEnvironment,Society,andCorporateGovernance(“ESG”).LookingatInternationalsociety,theyear2015isakeyjuncture,withtheUnitedNationsadoptingthe2030AgendaforSustainableDevelopment,underwhichinternationalsocietywillstrivetoachieveby2030.Bearingthesetrendsinmind,IwouldliketomakethethreefollowingpointsabouttheactivitiesdescribedinSumitomoMitsuiFinancialGroup’sCSRReport2015.

◦CommitmentfromthetoptoCSRmanagementSMFGaimstocontributetothesustainabledevelopmentofsocietyoverallbypositioningitscontributiontosolvingseriousissuesonaglobalscaleastheGroup’ssocialresponsibility.Undertheleadershipoftopmanagement,theentireGroupispromotingCSRtogetherbystrengtheningandenhancingitscorporategovernance,whileundertakingCSRthatisintegratedwithitsbusinessactivities.Itisalsoexcellenttoseethatthemanagementteamisparticipatinginthematerialityidentificationprocessthatstartedinfiscal2013.

◦StanceondisclosureWithregardtomateriality,theGrouphasdonewelltocomplywiththeGlobalReportingInitiative(GRI)G4Guidelinesbyidentifyingtheissuesthatitshouldaddress,andtheirboundaries,anddisclosingtheassociationbetweenthemandthespecifiedstandarddisclosureitemsonitswebsite.IlookforwardtoseeingfurtherprogressontransparencyofCSRmanagementgoingforward.Anothercommendablefeatureofthe2015reportisthatitcomplieswiththeEquatorPrinciplesbydisclosingthenumberofprojectsinwhichenvironmentalandsocialriskassessmentswereconducted.Thereareagrowingnumberofcasesinwhichloansbyfinancialinstitutionshavebecomeproblematicforthelendinginstitutionwhenprojectshavecausedenvironmentalissuesorhumanrightsinfringements.Ihopetoseeasmuchdisclosureaspossibleregardingthestandardsandproceduresandsoforthforconductingenvironmentalandsocialriskassessments.

◦ContributiontoemergingcountriesandCSRglobalizationOverthepastfewyears,theGrouphasbeenexpandingitsinitiativestohelpcreatesustainablesocietiesglobally.ExamplesincludetheexecutionofassessmentloansandprivateplacementbondstosupportenvironmentallyconsiderateactivitiesbycorporationsinMalaysiaandThailand,aswellasCSRactivitiesdesignedtoaddressneedsandsocialissuesinIndonesiaandIndia.InAprilthisyear,theGroupstartedoperationsatitsbranchinYangon,Myanmar.IhopethatwhentheGroupconductsbusinessinemergingordevelopingcountries,itwilltakeaproactivestanceoneconomicandsocialcontributions,andtakeproperstepstoidentify,prevent,andalleviatesocialandenvironmentalriskswithahighpotentialofoccurring.Finally,itissaidthatcorporationswillplayasignificantroleinachievingthetargetsofthe2030AgendaforSustainableDevelopment.IlookforwardtoseeingSMFGutilizeitsfinancialfunctionstomakeevengreaterstridestowardsthecreationofsustainablesocieties.

SMFG’sproactivecorporatesocialresponsibilityactivitieshavewonplauditsfromthemarkets.TheGroupcontinuestobeincludedinthefollowingmajorsociallyresponsibleinvestment(SRI)indexes.SRIIndexesareastandardforinvestmentdecisionsthatarebasednotonlyonfinancialperspectives,butalsoonimportantviewsincludingenvironmentalconsiderationsandsocialcontributions.WebelievethatthisisanendorsementbythemarketoftheGroup’sfuturecorporatesocialresponsibilityactivities.

SRI Indexes on which SMFG is listed (as of August 31, 2015)◦FTSE4GoodGlobalIndex◦FTSE4GoodGlobal100Index◦ESI（EthibelSustainabilityIndex）ExcellenceGlobal

KaoriKurodaExecutive Director CSO Network Japan

Third party opinion

Recognition for SMFG CSR initiativesSRIIndexesSMFGhaslisted



Solid Management Structure (Corporate Governance/Internal Audit System/Compliance/Risk Management) W Web http://www.smfg.co.jp/english/responsibility/organization/index.html

Management to Improve CS and Quality W Web http://www.smfg.co.jp/english/responsibility/cs/index.html

The Group Environmental Policy/Environmental Management System Based on ISO14001 Certification W Web http://www.smfg.co.jp/english/responsibility/environment/

Policy for Social Contribution Activities/The Backbone for Our Social Contribution Activities W Web http://www.smfg.co.jp/english/responsibility/community/index.html

Five Goals of SMBC’s Human Resources Development W Web http://www.smfg.co.jp/english/responsibility/employee/index.html

CSR Activity Performance and Goals of SMFG Companies W Web http://www.smfg.co.jp/english/responsibility/smfgcsr/goal/group.html

Performance Data and Goals of the Six Principal SMFG Companies W Web http://www.smfg.co.jp/english/responsibility/environment/

achievement/

SMFG Environmental Data W Web http://www.smfg.co.jp/english/responsibility/environment/

reduction/data01.html

Initiatives for Environmental Buinesses by Group Companies W Web http://www.smfg.co.jp/english/responsibility/environment/business/

data.html

Employees W Web http://www.smfg.co.jp/english/responsibility/employee/personnel/

Main Work-Life Balance Support Systems W Web http://www.smfg.co.jp/english/responsibility/employee/life/

SMFG Group policies and framework

SMFG data

CSR REPORT 2015

http://www.smfg.co.jp/english/responsibility/organization/index.html








http://www.smfg.co.jp/english/responsibility/community/index.html










http://www.smfg.co.jp/english/responsibility/environment/reduction/data01.html



http://www.smfg.co.jp/english/responsibility/environment/business/data.html



http://www.smfg.co.jp/english/responsibility/employee/personnel/

http://www.smfg.co.jp/english/responsibility/employee/life/

http://www.smfg.co.jp/english/responsibility/employee/life/

csr report 2015 - smfg · 2016-01-12 · sumitomo mitsui financial group 3 csr report 2015 contents...

Documents