Fair Money & Economic Opportunity

SMBC Consumer Finance's financial and economics education seminars reached over 280,000 participants annually a decade after 2011, and 342,638 participants in 2023.

SMBC Group aims to provide financial literacy programs to 1.5 million people cumulatively from FY2020 to FY2029, having reached over 1.4 million people from FY2020-2024. BTPN Syariah, an SMFG subsidiary, reported an 11.1% decrease in extreme poverty among its customers three years after starting to use services. SMFG received the UCDA Award for universal communication design for the fifth consecutive year in 2023, indicating efforts in product clarity.

Honest & Fair Business

Sumitomo Mitsui Financial Group (SMFG) operates a whistle-blowing system called the "SMBC Group Alarm Line," which received 345 reports in FY2023.

The company also has Internal Reporting Systems and a Hotline for Inappropriate Accounting and Auditing Activities. SMFG reported at least one financial restatement in its 2024 Annual Report due to errors in disclosures related to operating lease transactions. The board of directors of Sumitomo Corporation, a related entity, has 8 out of 15 members as outside directors, constituting a majority. SMFG has published an Anti-Bribery and Corruption Compliance Policy and implemented anti-bribery and anti-corruption programs under management supervision, with the Board of Directors approving and periodically evaluating the annual Compliance Program.

Kind to Animals

SMFG is a financial services company, and as such, most KPIs related to direct animal product use, testing, or animal husbandry are not applicable. The company does not have products requiring cruelty-free certification, nor does it engage in animal testing or operate animal-related facilities.

While SMFG has conservation initiatives, such as owning approximately 220 hectares of forest and supporting the planting of 80,000 trees, the articles do not provide measurable biodiversity impact, species recovery, or habitat restoration metrics as required by the rubric. The company's financing policies prohibit support for projects with significant negative impacts on wetlands or endangered species habitats, and it confirms forest resource and biodiversity protection for palm oil projects, but these are risk mitigation efforts in financing, not direct measurable conservation outcomes. The company supports large-scale aquaculture facilities, but there is no evidence of holistic assessment of animal welfare practices. There is no evidence of participation in multi-stakeholder initiatives for animal-free standards or active engagement in animal welfare policy advocacy.

No War, No Weapons

SMFG has a Statement on Human Rights, revised in 2021 and 2023, and is a signatory to the UN Global Compact, indicating alignment with the UN Guiding Principles on Business and Human Rights.

The company integrates UNGPs into employee training, with 28,774 employees participating in human rights training and 28,848 in compliance training in FY2023. SMFG publishes a Sustainability Report that consolidates human rights information. The company prohibits support to manufacturers of cluster bombs, nuclear, biological, and chemical weapons, and anti-personnel mines, with this policy stated in its sustainability report. SMFG also has a Sustainable Procurement Policy formulated in April 2022. In FY2023, 13 cases of corporate human rights due diligence were conducted. SMFG plans to introduce a Remedy and Grievance Mechanism in FY2024 and received two cases via JaCER in FY2024. SMBC Nikko Securities completed the introduction of human rights due diligence for customers in May 2024. SMFG also states that political turmoil and social instability are top risks, and it has a policy for specific businesses and sectors, including manufacturing of cluster bombs and other weapons of destruction.

Planet-Friendly Business

SMBC Group's total Scope 1, 2, and 3 greenhouse gas emissions were 1,775,790 tCO2e in 2025.

The company has set a net-zero target for its own operations (Scope 1 & 2) by 2030 and for its investment and loan portfolio (Scope 3) by 2050. The waste diversion rate for SMBC Group was 65.56% in 2024. SMFG has fully adopted TCFD recommendations, and its climate scenario analysis includes 1.5°C, 2°C, and 3°C+ pathways, with strategic planning explicitly linked to these scenarios. The company provides growing disclosure of climate-related assets at risk, with qualitative discussions of transitional risks and outlined management approaches. SMFG has a formal zero-deforestation policy with 50-60% implementation, basic traceability systems, and some supplier verification. The company has an emerging basic climate justice program with pilot projects and is starting to measure environmental equity impacts. It offers good transition support with reskilling options and outplacement services, and is beginning community engagement on transition impacts. SMFG directs 10-15% of its climate spending to adaptation, with structured partnerships with vulnerable communities beginning.

Respect for Cultures & Communities

The company has multiple formal partnerships with community groups, including a foundation and sports associations.

The company requires project operators to respect Free, Prior and Informed Consent from local residents and other stakeholders. However, communities allege that land for a project that the company was urged not to finance was not acquired with Free, Prior and Informed Consent. This project could displace up to 40,000 people. The Environmental and Social Impact Assessments for this project were deemed incomplete by a tribunal. The project faces local and international resistance, indicating a lack of social license. The company conducts environmental and social due diligence for finance activities. The SMBC Osaka Chuo Branch Main Building is designated as a Tangible Cultural Property by the city of Osaka. The company has a grievance framework and an Alarm Line for employees. A remedy and grievance mechanism for stakeholders, including suppliers, is scheduled for introduction in FY2024. A grievance desk is available for customers. The company provides human rights training for employees and management. Various donations and charitable programs are directed towards general social issues, child welfare, and environmental causes.

Safe & Smart Tech

Sumitomo Mitsui Trust Group, part of SMFG, has established an AI Policy supervised by its Board of Directors, which includes principles such as Human-Centered, Safety/Robustness, Fairness, Privacy Protection, and Accountability.

However, SMBC plans to establish frameworks for AI reliability and transparency over the next 18 months, indicating these are not yet fully in place across the entire group. SMBC is focused on creating auditable data and ensuring AI models are auditable, but no regular audit frequency or rigor is specified. The company states it will strive to ensure the verifiability of AI-based decisions and provide reasonable information to stakeholders, but the percentage of AI decisions with explainability is not provided. SMFL, a subsidiary, has acquired ISMS certification for specific services. Sumitomo Mitsui Trust Bank holds regular information security training sessions for all employees twice a year and requires participation in phishing email simulation exercises at least once a year. SMFG conducts awareness-raising activities and uses dedicated security education programs. SMFG has implemented security measures for internet banking, including password cards and smartphone applications, but no MFA availability percentage is provided. The company regularly conducts vulnerability diagnostics and monitors procured assets. SMFG also undergoes regular third-party evaluations of security countermeasure maturity and threat-based penetration testing. SMFG uses training to instill a "security by design" philosophy for IT system planning staff. SMFG has established and disclosed a privacy policy, complies with the Act on the Protection of Personal Information, and takes safety measures to prevent data loss or leakage. The Group will develop/provide/utilize AI systems only after assessing whether biases are acceptable, but no specific remediation effectiveness is provided.

Zero Waste & Sustainable Products

SMFG and its subsidiary SMFL are actively developing solutions across the entire value chain in a circular society, including building circulation models for IT assets, medical equipment, and working to establish a closed-loop system for lithium-ion batteries in Japan by 2030.

SMFL established a Circular Economy Division in FY2024. The company has implemented several waste reduction initiatives, such as SMBC Nikko achieving a 66% cumulative company-wide paper reduction by fiscal 2021 (compared to fiscal 2019), and SMBC Finance Service promoting paperless credit card applications. The SMBC Group has a company-wide target to achieve net-zero greenhouse gas emissions in its operations by 2030. SMBC Group has formulated a "Sustainable Procurement Policy" to promote responsible procurement activities that consider the environment and society throughout the supply chain. SMFG provides educational materials like the "SDGs Start Book" to elementary and junior high schools and SMBC publishes "JUNIOR SAFE" magazine to educate children on the relationship between money and the environment. SMBC Group's Green Deposit Framework includes 'Resource Efficiency & Pollution Prevention and Control' as an eligible green project, covering the development and operation of recycling facilities for municipal and industrial waste, and excludes projects without environmental and social impact assessments.