Asset Management One Co., Ltd

ESG Integration

  1. Asset Management One Co., Ltd.
  2. Sustainability & Stewardship
  3. Sustainability Investment
  4. Sustainable Investment Policy
  5. ESG Integration

We organically integrate both quantitative ESG information (such as ESG scores and ratings) and qualitative information (including engagement activities) into our fund management process.

our ESG Integration

Initiatives by Asset Class

1. ESG Integration in Equity Investment Management

At Asset Management One, we offer a wide range of investment strategies with the objective of contributing to our clients’ medium- to long-term wealth formation. Across all of these strategies, we believe that assessing companies’ initiatives toward sustainability is critically important. For example, in our domestic equity active investment strategies, we conduct proprietary ESG assessments that take into account companies’ responses to material issues and the impact of those responses on corporate value. In conducting these assessments, we place particular emphasis on two perspectives: growth potential and valuation (assessment of relative attractiveness).

In ESG evaluations for Japanese equity investment management, we identify key ESG issues (materiality) related to the business models of each industry. Taking into account the magnitude of impact on each industry and the relevant time horizon for each ESG issue, we analyse how individual companies are addressing these issues. This information is then utilised in investment decision-making in accordance with the strategy of each fund.

2. ESG Integration in Fixed-Income Investment

At our firm, ESG integration in Japanese fixed income investment is implemented through the use of its proprietary ESG Credit Scores in its investment process. Our firm’s proprietary ESG Credit Scores evaluate environmental and societal issues related to the focus areas identified in the materiality map and governance factors that affect credit risks, with a viewpoint of importance to the sector and the time horizon over which the impact on creditworthiness will materialize.

Using our unique ESG Credit Scores as a foundation, our experienced and dedicated credit analysts conduct in-depth research, etc. through direct interviews with the issuer and strengthen ESG creditworthiness analysis through proactive engagement with the bond issuer.

For actual investment decisions, even in cases where evaluation of the ESG Credit Score has been made in negative direction, we do not necessarily mechanically exclude a company from our portfolios. Instead we reflect the score in investment decisions according to product characteristics through analysis of creditworthiness, including financial impact on B/S forecasts.

3. Initiatives in Outsourced Asset Management

Within the Strategic Fund Investment Division, which oversees outsourced asset management, we conduct ESG‑focused due diligence that is independent from standard due diligence when selecting new external investment managers and in the course of regular monitoring. Through this process, we assess the ESG initiatives and practices of external managers.

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Head Office

Tekko Building, 1-8-2 Marunouchi, Chiyoda-ku, Tokyo 100-0005, Japan

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Asset Management One Co., Ltd

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