DISCUSSION

01
Theme

Messages from the Responsible Investment Council

Role of the Responsible
Investment Council /Impressions after being
appointed/Discussions during
Council meetings

Over seven years have passed since the Responsible
Investment Council was established, and the content of
discussions have changed over those years. Director
Kimura*, you have been a member of the Responsible
Investment Council since its establishment. How
do you assess Nomura Asset Management (NAM)’s
responsible investment initiatives?
* D irector Kimura retired on March 31 2024. The interview took placein January 2024.

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Responsible Investment Report 2023

Both the Responsible Investment Council and the
Responsible Investment Committee have become
more effective in conjunction with the changes inwhat is deliberated upon
Kimura NAM was the first company in the industry
to establish a Responsible Investment Committee(“Committee”) and a Responsible Investment Council(“Council”), and at the beginning we were still finding
our way. That was a time when conflicts of interest
between asset management companies and othercompanies in the same corporate group were being
identified and criticized. The main purpose of theCouncil is to manage conflicts of interest, and theCommittee has been operating appropriately based on
stringent proxy voting standards.
A recent topic of discussion has been the

management of conflicts of interest between
controlling shareholders and minority shareholders
when exercising voting rights regarding corporate
restructuring and M&A. The number of shareholder
proposals is increasing, as are the number of complex
and difficult to judge agenda items. The structureof the Committee has changed along with this, andtwo women in charge of ESG have recently joined theCommittee, enabling progress in terms of diversity.
Also, more appropriate stewardship activities are being
carried out. Both the Committee and the Council were
established from scratch, and I feel that both have become
considerably more effective over the past few years.
The manner in which the Council monitors the Committee
in real time is unique to NAM. As the company continues

to manage conflicts of interest, our reputation has
steadily improved. It re-emphasizes the point that for
asset management firms, trust is paramount.
Professor Miwa and Director Maeda, you both joined
the Council after the discourse and activities of bothbodies had already advanced to a certain point.
Was there a gap between your expectations before
your appointment and what you have observed andexperienced since joining the Council?
Miwa I was appointed to the Council in May 2020.

When I attended my first Committee meeting, I was
surprised to see how Director Kimura* actively spokeup, and was not just there as an observer. I learned
that the Council actively oversees and commits not
only to managing conflicts of interest, but also to
stewardship activities and proxy voting decisions.
Before I took office, I had the impression that NAM
would not oppose proposals if the parent company
was involved, but once I joined the Council, I found thatconflicts of interest were being appropriately managed.
As a member of the Council, I have told theCommittee members that I would like to see NAM be
more conscious of its role in society and for them tobe leaders in proxy voting standards. I do feel that theCommittee’s decisions have changed, and I believethat NAM has an effective system in place to ensure
responsible investment.
Maeda In March 2014, I stepped down as President
and CEO of a Japanese asset management company
and became Chairman of that company. Despite
being away from executive duties for a few years, I
was appointed as a member of NAM’s Council in June
2021. In the Committee meetings, detailed and lively
discussions took place based on standards, not only
regarding managing potential conflicts of interest
regarding matters involving Nomura Securities, butalso regarding proxy voting decisions. I found it
challenging just listening to the conversations andunderstanding them with respect to making a decisionon whether to approve or oppose specific proposals.

There were also new elements about sustainability and
ESG for me, so I have certainly learned a lot over the
past two and a half years.
It seems that other asset management companies
have similar types of committees, but the committee
members in those companies are mainly from theinvestment divisions, so I doubt they have a two-tiered
structure with an independent committee and council
like we have. NAM is well ahead of the curve, including
with respect to stewardship activities. I think thecompany should actually do more to promote this fact.

02
Theme

The role that institutional
investors play in the capital
markets and society

When you look at global trends, how do you see therole that Japanese institutional investors play in capital
markets and society?
Asset management firms will play a central role inJapan becoming a Leading Asset Management Center
Miwa Looking back at history, since the 1990s,
assets in advanced capitalist countries have been
concentrated among institutional investors such as
asset owners and asset managers. The financial
sector then became larger than the real economy,
and in the 2000s the actions of institutional investors
were believed to be having a negative impact on thereal economy. This is referred to as money manager
capitalism or investor capitalism. To rectify this, in2010 the UK established the Corporate Governance
Code and the Stewardship Code. In response to
the excessive market behavior, debate emerged
about responsible investment, whereby investors takeresponsibility for the environment, social transformation,and corporate change. I think NAM is the leader in Japan
when it comes to responsible investment.
In recent years, Japan has been encouraging

change among various entities in the investment chain,with the aim of turning Japan into a Leading AssetManagement Center. Leading companies in Japan’s
asset management industry are now handling proxyvoting and implementing engagement on a level on parwith firms in Europe and the U.S. Asset managementcompanies are in a position to play a central role inmaking Japan a Leading Asset Management Center,working with individuals, end beneficiaries, and asset
owners to improve and enhance the investment chain.
Maeda I agree that NAM is the leader when it comesto stewardship activities. If we link stewardship
activities with investment operations and can achieve
top-class investment returns in the industry, we will
firmly be number one both in name and reality. At thesame time, it is important for asset owners to accept
and appreciate the initiatives that asset managers
are pursuing. From that point of view, I think asset
ownership reform is a very important topic.
While deliberating on proxy voting proposals, moreemphasis is now being placed on what is important tominority shareholders. Director Maeda, amid thegrowing awareness that economic value is not the only
thing that matters, and with your background working inan asset management firm, how do you view NAM’s role?
We are entering an era in which robust engagement isrequired to be a competitive asset manager
Maeda In recent years, not only has there been
growing awareness of the importance improving
corporate value, but also as PBRs of less than 1 arebeing corrected, engagement has become more
important than ever. I see a lot of potential in the factthat not only financial information, but also non-financial
information, is now a determining factor in improving
corporate value. I firmly believe that we are now in an
era in which asset managers cannot be competitive
unless they have a strong engagement program.
Engagement involves having companies focus
on addressing the environmental and social issues

108suggested by investors, which in turn increases
corporate value. The purpose of engagement is toultimately benefit minority and general shareholders.
We must continue to bolster our engagement platformin line with global trends.
Miwa Overseas, investors proactively conduct socalled policy engagement, whereby they engage not
only with clients and issuers, but also with regulatorsand rule-making organizations. I would like to see
NAM create its own soft policies in order to encouragechange within society, and play an active role increating a better future.
Increasing attention is being focused on ESG
collaborative engagement, in which multiple
investors work together to influence companies.
When Japanese investors act as a bridge between
overseas investors and Japanese companies, thelanguage barrier disappears and some successstories are beginning to emerge.
Miwa Asset managers are able to conduct proxyvoting and engage directly with companies. It is
important to develop collaborative ESG engagement
schemes with universal owners around the world.

03
Theme

The future of responsible
investment

Professor Miwa mentioned that control isconcentrated in the hands of institutional investors.
Director Kimura*, what kind of contributions do you
think NAM has made to the capital markets? And
what are some areas for improvement?
Progressively revise proxy voting standards to makelarge contributions to the market
Kimura Our ultimate beneficiaries are entrusting uswith an enormous number of voting rights. Therefore,
we have the power to raise the corporate value of ourportfolio companies and promote ESG. The reality isthat NAM is practicing responsible investment and, inrecent years, has been carrying out engagement on awide scale. Going forward, if NAM continues to revise
its proxy voting standards in a progressive manner,
it will surely have a positive impact on Japanesecompanies as a whole. NAM makes significant
contributions to the Japanese equity market overall,and I believe it is our responsibility.
In the capital markets, while the traditional type ofstock trading is important, non-financial information

Organizational Structure for Responsible Investment
Board of Directors
Audit and Supervisory
Committee

Responsible Investment
Council

Formulation ofpolicies, supervision
initiatives, etc.

Supervision/verification/recommendations, etc.

Executive
Management
Committee

Main
activities

109

Responsible Investment
Committee
Secretariat: Responsible
Investment Department

Dialogue withportfolio companies
engagement

Proxy voting

Responsible Investment Report 2023

Reports on activities,
proposals of issues,etc.

Investment
andresearchdivisionis becoming increasingly important, and we areentering an era where economic returns are no longer
all that matters. The Committee and the Council must
continue to come to terms with this.
Asset owners, particularly those overseas, are now
looking for asset managers who can outperform
even with ESG constraints. However, it can bedifficult to align the viewpoints of investment
managers and analysts regarding what to ask ofcompanies with respect to share price returns and
ESG-related efforts.
Kimura Japan is entering a very challenging

period. Until recently, if you invested in an ESG
fund, the performance and returns were good, andthe prevailing wisdom has been that if a company
earnestly addresses ESG issues, its financial
performance will improve and its stock price will rise.
However, the global situation been changing overthe past year or so, and there has been a net outflow
of money from ESG funds, making it hard to launch
new funds. However, the importance of ESG remains
clear despite these developments, so NAM must takea long-term perspective and persevere in its efforts
address ESG issues.

Membercomposition

The Responsible Investment Council comprises only the Chief Conflict Officer and persons in
independent positions in Nomura Asset Management, including independent outside directors.
Currently, the Responsible Investment Council has four members: one Chief Conflict Officer; twoindependent outside directors; and one outside expert.

Positioning

The Responsible Investment Council is positioned under the Audit and Supervisory Committee.
As necessary, the Responsible Investment Council recommends improvements to the Executive
Management Committee and/ or the Responsible Investment Committee, and reports such
recommendations to the Board of Directors and the Audit and Supervisory Committee (Refer to“System to Manage Conflicts of Interest” on Page 78).

Meetings held Since its establishment in September 2016, the Responsible Investment Council has met a total of
53 times through December 31, 2023. The Responsible Investment Committee is attended by themembers of the Responsible Investment Council, who promptly provide their opinions.

Integration into
investment decisions Collaborative/public
activities
ESG integration

About theResponsible
Investment
Council

The Responsible Investment Council verifies the appropriateness and validity of stewardship
activities, including the formulation of proxy voting guidelines, proxy voting decisions, theformulation of engagement policies and engagement activities, thereby aiming to prevent adverse
impacts on clients’ interests due to conflicts of interest or other issues.

Maeda If beneficiaries demand that ESG factors

be included in the investment approach even if the
returns are poor, it is the asset manager’s duty toinvest in accordance with that demand. Meanwhile,
I think it is necessary to evaluate fund managers
holistically, including qualitatively evaluating themwhile considering ESG constraints.

Responsible investment is becoming theinvestment business itself
NAM invests in approximately 2,400 Japanesecompanies. We are entering an era in which
overseas companies will no longer invest inJapanese companies if these 2,400 companies do
not promote ESG. There is also a risk that Japan’s
capital markets will go into decline, which would
also mean a downturn in Japan’s asset management
sector. Additionally, ESG regulations are becoming
stricter overseas, making it difficult to engage in
the asset management business overseas withouta strong focus on ESG. For NAM, responsible
investment has become synonymous with the asset
management business itself.

04

Expectations for NAM

Theme

I think Japan must move forward with its plan to
become a Leading Asset Management Center, withthe mindset that if we fail to do it now there will be
no second chance. With this in mind, what are yourhopes and expectations for NAM, especially in the
responsible investment domain?
Determining the future direction of ESG
Kimura NAM was historically not very good atpresenting its efforts to the outside world, and when
I first joined the Council, the company’s website
mainly focused on sales information for funds. This
has improved significantly in recent years, with more
space being devoted to information about responsible
investing. For example, our proxy voting standards
are now clearly presented on the website. I am very
encouraged by the progress being made in hiring andpromoting young people and women, especially in the
Responsible Investment Department. Human capital iscritical. Going forward, I hope to see further progressin appointing women as investment managers andincreasing diversity in general.
Maeda As Japan aims to become a leading asset
management center and is on the cusp of becoming
an inflationary economy, the asset management
industry is at a critical juncture. We should increase
the level of organizational freedom to avoid fallingbehind in the competition with other companies. This
year, we may see shareholder proposals not only
related to ESG, but also regarding capital efficiency
and rectifying PBRs below 1. As a frontrunner in theindustry, I would like NAM to engage in stewardship
activities more actively than ever before. The Council
will support such efforts.
Miwa Recently, there has been a debate about where
ESG is heading. I would like to see NAM vigorously
promote ESG, aiming to chart its future, instead ofsimply observing and reacting.

Miwa I think that statement really hits the mark. I

would like to see NAM pour substantial resourcesin linking investment and research, and focus on
increasing corporate value through systematic
engagement. Overseas, especially in Europe, theapproach to ESG is very proactive, so unless you
systematically create a system, you cannot develop
an effective business model. Another important
point is linking non-financial information to employeecompensation. One concern I have about NAM is
the slow pace of its DX (digital transformation). In
order to avoid falling behind our peers, non-financial
information is an area in which we should use DX tomake advances.

Outside director Akiko Kimura

Outside director Ryoji Maeda

Appointed in 2016

Appointed in 2021

April 1973 Certified as an attorney (Dai-Ichi
Tokyo Bar Association) Joined
Nishimura, Komatsu & Tomotsune(now Anderson Mori & Tomotsune)

April 1977 Joined Sumitomo Life Insurance
Company

January 1977 Partner, Nishimura, Komatsu &Tomotsune
June 1978 Harvard Law School (LL.M.)
January 2011 Of Counsel, Anderson Mori &Tomotsune (current)
June 2015 Outside Director, Nomura AssetManagement Co., Ltd.
March 2024 Retired from Outside Director,
Nomura Asset Management Co., Ltd.

April 2002 Executive Officer, CIO of Investment
Headquarters, Sumitomo Life
Investment Co.,Ltd.
December 2002 Operating officer, Sumitomo Mitsui
Asset Management Co., Ltd.
June 2007 President and CEO, (Chairmanof the company from April 2014),
Sumitomo Mitsui Asset Management
Co., Ltd.

Outside Expert Yumiko Miwa
Appointed in 2020
April 1996 Full-time Assistant, School ofCommerce, Meiji University(Assistant Professor from April 2000)
April 2002 Member, Fund Management
Committee, Pension Fund Association
for Local Government Officials
October 2005 Professor, School of Commerce,
Meiji University (current)
April 2006 Visiting Professor, School ofBusiness, University of Michigan

April 2018 Permanent Audit & Supervisory
Board Member, Allianz Global
Investors Japan Co., Ltd.

April 2020 Member, Fund Management
Committee, National Federationof Mutual Aid Associations for
Municipal Personnel (current)

June 2021 Outside Director, Nomura AssetManagement Co., Ltd. (current)

June 2020 Outside Director, Eisai Co., Ltd.
(current)
March 2022 Outside Director, Pigeon Corporation(current)

110Self-Evaluation Methodology

Results of
Self-Evaluation of2023 Stewardship
Activities

1

We conducted a survey of mainly members of the Responsible Investment
Committee, the highest decision-making body for our stewardship activities, andheld discussions based on the results of the survey. Members of the Responsible
Investment Council, which monitors the Responsible Investment Committee,
particularly with regards to matters related to conflicts of interest, also participatedin the survey and in subsequent discussions.

Survey Overview
TargetWe actively engaged in stewardship activities
in order to encourage portfolio companies toincrease their corporate value and promotesustainable growth, and to increase medium- tolong-term investment returns for clients andbeneficiaries.
To further enhance our activities, we performed
a self-evaluation of our stewardship activities
in 2023 (January to December), the results ofwhich are in this section. This self-evaluation
corresponds to the self-evaluation required by
Guideline 7-4 of the Japan Stewardship Coderevision on March 24, 2020.

The following people responded according to the questions.

Responsible
Investment
Committee
members

7

Comprises 7 members from theinvestment and research functions

Survey timing

December
2023

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Responsible Investment Report 2023

Responsible
Investment
Committee
Secretariat
members6

Period covered

JanuaryDecember 2023

Responsible
Investment
Council members

4Comprises one Chief Conflict
Officer, two independent outside
directors and one outside expert

Response format

Signed Multiple
choice(4 choices)

Wrote comments
freely2

3

Results of self-assessment (overall)

Future Actions

More than 90% of respondents indicated that stewardship activities in ourcompany were appropriate.
The Responsible Investment Committee held discussions based on the
results of the survey and comments received, and the final assessment was wewere generally able to carry out appropriate stewardship activities, including
evaluation of activities in 2023 and our response to the points identified in theprevious year as areas to be strengthened.

The following points were identified as areas that need bolstering to further
enhance the effectiveness of our stewardship activities.
The Responsible Investment Committee will deepen discussions on the points
that need to be enhanced as identified through this self-evaluation, and work tofurther improve stewardship activities.

Particularly outstanding initiatives among 2023
stewardship activities

Improved the diversity of the Responsible Investment
Committee and enhanced its materials and operations

Revised the Basic Policy for Responsible Investment andProxy Voting Standards for forward-looking investment

Reviewed priority engagement topics to reflect trends

Made progress in collaborative engagement in accordancewith international initiatives

Enhanced information disclosure

Bolster two-way information sharing and communication between
personnel to enhance synergies between engagement andinvestment decisions
Systematically increase the level of understanding of those incharge with respect to the policies established by the Responsible
Investment Committee in order to improve stewardship activities asan organization
Improve the methods for measuring the effectiveness ofengagement, so as to quantitatively understand the relationshipbetween the policies established by the Responsible Investment
Committee and the results of engagement activities, which will thenlead to process improvements.
Furthermore, considering that more than seven years have passed since theestablishment of the Responsible Investment Council, we will re-examine theCouncil’s structure.

Please refer to the link below for the results of ourself-evaluation of our activities corresponding to eachprinciple in Japan’s Stewardship Code.
https://www.nomura-am.co.jp/special/esg/pdf/self_assessment_2023.pdf(Japanse only)112

Nomura Asset Management’s ESG Communication
Activities
External Activities in 2023

Nomura Asset Management is also focusing
on delivering information related to ESG. NAM
employees give presentations and participate as
panelists at seminars to help people gain a better
understanding of ESG.
Also, we work with initiatives as well as public
institutions to discuss ESG issues.
Furthermore, by participating in efforts toestablish standards for ESG reporting, we convey
our knowledge and insights about ESG to various
stakeholders in an easy-to-understand manner.
Collaboration with initiatives, domestic
and overseas public institutions, etc.
Japan Stewardship Initiative (JSI) Steering Committee member
Member of the Industry Advisory Panel (IAP) and Co-chair of the Working
Group on the ASEAN Taxonomy &Transition established by the ASEAN
regulatory authority
C ommittee member, Constructive Dialogue Promotion Working
Group, Committee on Financial and Capital Markets, Japan Business
Federation (Keidanren)
Committee member, “Impact Investing Roundtable” cohosted by GSG and FSA
Advisory Committee member for “Advance,” the PRI’s collaborative
initiative for human rights and social issues
Advisory Committee member for “Spring,” the PRI’s collaborative initiative
for nature
Member of Ministry of the Environment’s Working Group on the Green List
PRI Japan Advisory Committee member
PRI Sustainable Systems Investment Managers Reference Group(SSIMRG) member
ICGN Global Stewardship Committee member
Ministry of Economy, Trade and Industry: Skills Development andResponsible Business Conduct for Transition – Member of the projectworking group to develop business and human rights materials

Jan.


Deliveredexplanatory video at ICJ about NAM’s Proxy Voting Standards to issuer companies
Delivered explanatory video about NAM’s proxy voting at Listed company board member’s governance forumFeb.

 articipated in panel discussion on “ASEAN+3 Sustainable Finance’s Future Direction” at the 36th ASEAN+3 Bond Market Forum (“ABMF”), a project to consider commonality andPstandardization in Asia’s bond market (held in Manilla, Philippines)
Participated in panel discussion at the Moody’s event “Next-Generation Sustainability and ESG” forumMar.

 poke on the topic of “Investors’ analysis and evaluation perspective on transition finance” at the Nomura Securities/Bloomberg co-sponsored seminar “GX Frontline / Changing
S
Capital Markets Towards Carbon Neutrality (webinar)”Presented a paper on “Why Cybersecurity is the Biggest Hidden ESG Risk” on Nomura Connect
Gave lecture on “ESG Investment Opportunities” at the China-Japan Finance and Economic Forum hosted by CICC
P resented a paper titled “Automated Evaluation of Integrated Reports Considering Interpretability” at the Financial Informatics Study Group of the Japanese Society
for Artificial IntelligenceMay.

 resented at Nikkei SDGs Forum “Non-Financial Information Disclosure and Desirable Human Capital Management as Seen by Institutional Investors”
PParticipated in a discussion with the Ministry of Economy, Trade and Industry regarding the use of GX transition bond proceeds
Presented at an annual meeting for investors about sustainable bonds hosted by Nomura Asset Management Malaysia.
Participated in a panel discussion about “Sustainable Investment in Government Bonds” at the World Bank’s Global Borrowers Forum (Stockholm, Sweden)Jun.

 resented at the “Sustainable Bonds and Net Zero Investment” seminar jointly sponsored by the Central Bank of Indonesia, Indonesia’s Ministry of Finance, the Market SupervisoryP
Authority, and the Asian Development Bank (Jakarta, Indonesia)Aug.

 ave presentations on “Challenges and efforts in human capital investment by Japanese companies” and “Initiatives in which NAM participates and collaborativeG
engagement” at the institutional investor seminar “PROJECT BRIDGE/Invigorate with Japanese Equities”
Spoke at the United Nations Development Program (UNDP) Sustainable Finance Consultation (participated online, Jakarta, Indonesia)
Contributed an article to the Japan Association of Corporate Directors’ August 2023 issue of Corporate Governance on the topic of “Corporate human capital management
expected by institutional investors”

Sep.

 erved as moderator for the PRI webinar “The Big Picture on Sustainability”
SGave lecture on academic research using ESG under the topic of “The Latest in AI/FinTech: ESG Quants Edition” for the Waseda Fund Management CourseOct.

 articipated in a panel discussion and opinion exchange hosted by the Regional Banks Association of Japan
P
Participated in panel discussion (natural capital, human rights) at PRI in Person 2023 (Tokyo)
Participated in panel discussion at the Tokyo Sustainable Seafood Summit
Served as moderator for the PRI in Person 2023 (Tokyo) official side event “Investor-Company Dialogue Forum: Serious Sustainability Management”
Participated in a panel discussion at the 2nd “Putting the TCFD Scenario Analysis into Practice,” a workshop on climate-related financial information disclosure and nature-related
financial information disclosure for businesses, held by the Ministry of the Environment
Participated as a speaker in the panel discussion on the topic of “Corporate problem-solving ability and avoided emissions” at the GGX x TCFD Summit
Participated as a speaker at the PRI in Person 2023 (Tokyo) official side event “Bond Net-Zero Investment Framework”
Presented at the Asian Development Bank’s Consultation on the Development of Blue Bonds in the Asian Market
Released a paper titled “Sustainable Investment Functions and Application to Portfolio Selection” in the October 2023 issue of the Securities Analyst Journal
Presented at the Financial Informatics Study Group of the Japanese Society for Artificial Intelligence with the title “Automated Evaluation of Integrated Reports Considering Interpretability”
Presented at the Financial Informatics Study Group of the Japanese Society for Artificial Intelligence with the title “Automated Generation of Improvement Plans for Environmental
Activities in Companies”

Nov.

 poke in panel discussion about proxy voting at the Osaka Stock Council
SPresented at the Nikkei ESG Management ForumLectured in the Sustainable Investment Course at Sunway University in Malaysia
Participated in a panel discussion on “Using Sustainability Data in Investment Decision-Making” at FISD
Spoke at “Japan’s Energy Issues” presented by the Economist Intelligence Corporate Network

Dec.

 resented at the Japan Academy of Business Administration’s symposium
PParticipated as a panelist in the Blue Bond Seminar hosted by the Asian Development Bank (Philippines) (participated online)
Participated in a panel discussion for the “Appropriate evaluation of avoided emissions toward a net-zero society” seminar hosted by the Ministry of Economy, Trade and Industry
at the COP28 Japan Pavilion
Submitted a paper titled “Stochastic ESG Score and Capital Asset Pricing Model” to SSRN (a global collaborative organization that evaluates and shares research papers)

Internal Seminars in NAM
 iko Oyama of Keidanren gave an internal presentation about “What kindMof global diversity competencies are required of us now? - Key points for
management and changing individuals’ mindsets”
Held a talk session where Professor Masako Egawa, Chancellor of Seikei
Gakuen, and Professor Yumiko Miwa of the School of Commerce, Meiji
University, spoke with employees about what is expected of Nomura AssetManagement as an asset management company
Held workshops for the Investment and Research Unit on “Natural
Capital,” “Corporate Governance and Monitoring Boards,” “Well-Being:
ATM and ATN,” “Human Capital/Human Rights Risks,” and “Sustainability
Governance and Risk Management”
Held workshop for NAM employees about revisions to NAM’s Proxy VotingStandards
Lecture for young employees on ESG investing

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Responsible Investment Report 2023

20 Review of 2023
23

20 2024 and Beyond
24

In recent years, international collaborative
engagement has become increasingly important.
In particular, there has been a growing trend forJapanese companies to be the target of suchengagement, and the role of Japanese institutional
investors and their responsibilities have also grownin importance. Japanese asset management firms
are becoming indispensable in acting as a bridge
between global investors and Japanese companies,
improving corporate disclosure and solving ESG
issues, leading to increased corporate value.
As a Japanese asset manager, Nomura AssetManagement is an advisory member for two PRI
initiatives: Advance, PRI’s human rights collaborative
engagement; and Spring, PRI’s collaborative
engagement on natural capital just launched in
2023, and we are playing a central role in bothprograms. We also participated in Triple I for GH,
which aims to promote impact investing in the fieldof global health, and we have bolstered international
collaboration, especially in order to solve medical
problems in developing countries. We have worked
to strengthen our initiative-based efforts, because
demonstrating the impact of those initiatives in theinternational community is important to enhancing
our competitiveness as an asset management firm.

Responsible investment is now at the very heartof Nomura Asset Management’s investment
business. In particular, our investment assets havebecome increasingly passive in recent years, andthe sustainable growth of portfolio companies has
become essential to our business. Stewardship
activities targeting portfolio companies are becoming
more and more important. In addition, Nomura AssetManagement operates a global asset managementbusiness, so it is impossible for us to do businesswithout addressing individual countries’ increasingly
stringent ESG-related regulations, as well as thedemands from our customers.
Also, our vantage point has been shifting fromJapan to overseas. In recent years, in response tothese changes in the business environment, wehave focused on enhancing our own ESG productgovernance, expanding the ESG domains we address,
and we have been endeavoring to play a central rolein global ESG initiatives. Responsible investment and
ESG have no national borders, and we are now in an
era where only globally competitive asset management
firms can be successful in Japan. We will continue to
evolve our efforts to become an asset management
firm that is trusted by investors and portfolio
companies around the world.

Head of the Responsible
Investment Department

Toshiyuki Imamura

114