Equity

Sustainability in PT Nikko Sekuritas Indonesia

PT Nikko Sekuritas Indonesia

4. Quality Education 7. Affordable and Clean Energy 9. Industry, Innovation and Infrastructure 11. Sustainable Cities and Communities 13. Climate Action

Overview

The innovation of the company is created according to the standard and direction of SMBC Nikko Group in Japan. There are 4 initiatives such as Environment Conservation Initiatives, Financial and Economic Education, Employee Engagement, and Sustainable Finance.

All these 4 initiatives applied in Nikko Indonesia, even though the implementation is still not fully implemented, however, the structure of initiatives are existed to be applied and mandatory as a direction from SMBC Nikko Group.

Author

Chandra Limi

Chandra Limi

School

IPMI International Business School

IPMI International Business School

Professor

Amelia Naim Indrajaya

Amelia Naim Indrajaya

Innovation

In addition to direct activities such as the reduction in energy and paper consumption and waste discharge, the company proactively promotes initiatives taking advantage of the position as a securities company, including offering opportunities to invest in companies taking pro-environmental approaches to business so as to support companies in implementing their environmental initiatives. The company has established an environmental policy and is taking environmental considerations into account in its business activities and daily operations.

Through financial products, the company actively offers opportunities to invest in companies that take a pro-environmental business approach. In 1999, the group started handling the Nikko Eco Fund, the first SRI (Social Responsibility Investment) fund in Japan to introduce a stance on environmental conservation.

In February 2010, the group commenced handling the SMBC Nikko World Bank Bond Fund. This fund is the world's first fund developed in cooperation with the World Bank to invest in World Bank green bonds. A portion of the profits from this fund is donated to UNICEF and the Japanese Red Cross. Green bonds in which this fund invests are a type of bond issued by the World Bank.

Sustainability in PT Nikko Sekuritas Indonesia

Inspiration

PT Nikko Sekuritas Indonesia has been working to realize a sustainable society by realizing its management philosophy and solving social issues surrounding the company. The company's philosophy, which is indispensable for the realization of a sustainable society, has been passed down for years and lies in the hearts and minds of each and every employee. Focuses on customers, plays a sound financial intermediary role and contributes to the development of markets and society, and respects diversity. The company's activities cover a wide range of areas, including environmental conservation within and outside of its business activities, efforts to improve financial literacy, and various community activities. As a corporate citizen and financial institution, the company believes that it has a social mission to actively engage in these activities and contribute to the achievement of sustainable development goals (SDGs).

Overall impact

The company has established the Sustainability Promotion Committee, which consists of members of the Management Committee, to discuss our company's sustainability promotion at the management level. At the Sustainability Promotion Committee, the company discusses issues that need to be addressed and ways to contribute to the realization of a sustainable society, in conjunction with management strategies.
By doing this, the sustainable business entities that focus on SDGs can be improved by getting funds and support from SMBC Nikko Group. These initiatives also be a pioneer in other Investment Banking. The funds and support from the group impact around the world due to the group serving worldwide (many countries) as long as the business aligns with the SDGs.

Business benefit

In order to resolve environmental and social issues through business in financial and capital markets, the company established the SDGs Finance and has been actively promoting SDGs and ESG investments.

This can be shown by the credentials of sustainable finance that have been issued in JPY-denominated Bond, Foreign Currency-denominated Bond, and Equity.

Social and environmental benefit

The company has consistently provided green bonds and sustainable finance to many companies that focus on SDGs. For example, currently, the companies which engaged in renewable energy for the utility (electricity) can be easily applied in our facility (bond and/or equity) rather than the coal business. Not limited to renewable energy, our facility also supports other SDGs such as environmental conservation by issuing Nikko-Eco Fund. Those are some examples of contributions that the company gave to the environment.

Interview

Tomoya Kato, Director

Photo of interviewee

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PT Nikko Sekuritas Indonesia

PT Nikko Sekuritas Indonesia

Jakarta, ID

Business Website: https://nikkoindonesia.com/

Year Founded: 1990

Number of Employees: 201 to 500

PT Nikko Sekuritas Indonesia is a member of SMBC Nikko Group (Japan) that engage in the business of Investment Banking in Indonesia.

PT Nikko Sekuritas Indonesia is the only Japanese Investment Banking in Indonesia that has integrated Investment Banking businesses such as Brokerage, Asset Management, and Corporate Finance.

PT Nikko Sekuritas is a joint venture between reputable Indonesian companies and SMBC Japan. The company has a unique advantage in access to both Indonesian and Japanese markets and business networks, along with access to greater resources, including specialized staff, expertise, and finance.