FinanceMap scores this financial institution in the following areas. Please navigate to the relevant tab for in-depth analysis
FinanceMap assesses these portfolios for this financial institution. Please navigate to the relevant tab for in-depth analysis.
Fossil fuel companies are those whose primary sector falls within coal mining and services, or up-, mid-, and downstream oil and gas sectors. Green companies are defined as companies having over 75% revenue deriving from Substantial Contribution to Mitigation activities under the EU Taxonomy.
Portion of AUM Assessed: $148B
| Holding Name | Contribution to Sector Production |
|---|---|
| Kansai Electric Power Co Inc | 24.6% |
| Kyushu Electric Power Co Inc | 16.7% |
| Electric Power Development Co Ltd | 16.1% |
| Tokyo Electric Power Company Holdings Inc | 10.6% |
| Tohoku Electric Power Co Inc | 10.0% |
| Chubu Electric Power Co Inc | 7.0% |
| Hokkaido Electric Power Co Inc | 5.0% |
| Shikoku Electric Power Co Inc | 3.9% |
| NTPC Ltd | 0.6% |
| Nextera Energy Inc | 0.4% |
| Holding Name | Contribution to Sector Production |
|---|---|
| Toyota Motor Corp | 36.1% |
| Honda Motor Co Ltd | 21.3% |
| Suzuki Motor Corp | 18.6% |
| Nissan Motor Co Ltd | 9.4% |
| Mazda Motor Corp | 6.3% |
| Subaru Corp | 4.4% |
| Mitsubishi Motors Corp | 1.9% |
| Maruti Suzuki India Ltd | 1.0% |
| Mahindra and Mahindra Ltd | 0.3% |
| General Motors Co | 0.2% |
| Holding Name | Contribution to Sector Production |
|---|---|
| Coal India Ltd | 83.5% |
| Glencore PLC | 7.3% |
| Yankuang Energy Group Co Ltd | 3.9% |
| China Coal Energy Co Ltd | 2.9% |
| Adani Enterprises Ltd | 1.5% |
| China Shenhua Energy Co Ltd | 0.5% |
| Inner Mongolia Yitai Coal Co Ltd | 0.3% |
| Holding Name | Contribution to Sector Production |
|---|---|
| Inpex Corp | 27.6% |
| Japan Petroleum Exploration Co Ltd | 15.2% |
| Mitsui & Co Ltd | 12.9% |
| ENEOS Holdings Inc | 8.8% |
| Tokyo Gas Co Ltd | 6.2% |
| Osaka Gas Co Ltd | 4.9% |
| Idemitsu Kosan Co Ltd | 3.7% |
| Cosmo Energy Holdings Co Ltd | 2.8% |
| Exxon Mobil Corp | 2.0% |
| Chevron Corp | 2.0% |
Daiwa Securities Group’s stewardship assessment is based on the activities of its asset manager subsidiary, Daiwa Asset Management.
Daiwa does not appear to be engaging with companies substantially on climate. The asset manager has outlined its climate engagement priorities, which include engaging on GHG emissions and climate risk. It has described how different teams conduct engagement-related activities and it appears some teams use milestones to measure engagement progress, however, milestones lack detail. It is unclear whether the asset manager has a defined escalation strategy, but it has outlined divestment as an aspect of the fund management process.
Daiwa appears to be engaging with companies on climate, including on the development of decarbonization technologies and on climate scenario analysis. However, its engagement impact does not appear to go beyond improved climate risk disclosure. The organization does not appear to be advocating for companies to align political influences with the Paris Agreement. It is involved with various climate-related investor initiatives including CA100+, NZAM, and UN PRI, however its contributions to these initiatives appear limited.
Daiwa has clearly described its stewardship governance structure including roles and responsibilities and appears to regularly review stewardship related policies and activities. The asset manager has limited transparency on engagements, providing anonymous case studies in its reporting. It discloses its proxy voting record and voting policy for domestic and foreign stocks, which include descriptions of its decision-making process for proxy voting. Daiwa does not appear to be willing to use its shareholder authority to file climate-related shareholder resolutions.
Insightia data indicates that Daiwa did not meet the minimum threshold to assess support of AGM resolutions InfluenceMap categorizes as in line with the Paris Agreement. Therefore, the asset manager has not been scored on InfluenceMap's climate-relevant voting query.
FinanceMap's methodology to measure the engagement process on climate was developed in consultation with several of the world's leading asset managers and uses key aspects of the UK Financial Reporting Council's 2020 Stewardship Code . The Stewardship Code was chosen to benchmark engagement quality as it provides an ambitious framework and detailed definitions of what constitutes effective engagement. FinanceMap defines the term ‘engagement’ as referring to all investor actions undertaken to influence the management strategy of the companies they own including private communications with corporate management and appointed advisors; questions at AGMs/other company meetings; comments on the company in the media; escalation and the shareholder resolution process (filing, voting behavior). FinanceMap’s methodology breaks the engagement process down into a set of sub-activities and looks for evidence associated with these across publicly available data sources.
Climate-relevance categorization of shareholder resolutions is based on the IPCC’s Special Report on 1.5°C and its concluded need for “rapid and far-reaching transitions in land, energy, industry, buildings, transport, and cities.” FinanceMap scored voting on any resolution where the intent and likely outcome is consistent with this IPCC stated need. The voting data is drawn from asset managers' disclosures to the US Security Exchange Commission (SEC), asset manager websites (including third-party websites they link to), directly from the asset managers, and through specialist voting data provider Insightia. The full list of resolutions assessed is available here.
The following table outlines the key queries and data sources, which FinanceMap uses to assess asset managers' corporate engagement programs. Every evidence piece is assessed on a five-point scale of -2,-1,0,1,2 or NA (not applicable)/NS (not scored). All queries, data sources, and evidence pieces are weighted against one another in a matrix system to arrive at a final top-level score. Clicking on specific cells will load the underlying evidence and information on how it has been assessed.
