Abstract

Response to conservation and restoration of natural capital in SMBC Group

Masayuki TAKANASHI

Group Chief Sustainability Officer (CSuO)
Sumitomo Mitsui Financial Group

 SMBC Group is advancing nature positive initiatives from both risks and opportunities perspectives by emphasizing an integrated approach to environmental protection—going beyond the urgent need to address climate change to include conservation and restoration of natural capital, the transition to a circular economy, and adaptation measures to avoid and mitigate climate change impacts.

 At “SMBC’s Forest“ in Isehara City, Kanagawa Prefecture, we analyzed two key public functions of the forests—biodiversity conservation and water recharge—by assessing both status and multiple management scenarios, and we are implementing ecosystem protection measures based on the results. Leveraging the insights gained, we are enhancing the sophistication of our assessment of our dependence on and impacts on natural capital, and we also use these insights as a means of engagement with our clients, thereby contributing to the realization of a nature-positive society.

 In this lecture, we will share the assessment methods and results from SMBC’s Forest, the ecosystem protection initiatives implemented in response to those findings, and how— as a financial institution— we are applying the insights gained to engage with our clients.As the concept of Nature Positive gains global prominence, indicators and standardization have become central mechanisms through which natural capital is assessed, governed, and mobilized. Discussions on biodiversity measurement now extend beyond the Convention on Biological Diversity (CBD) to encompass a wide range of international initiatives, including IPBES, nature-related financial disclosure frameworks, and emerging biodiversity credit schemes. Each of these approaches reflects different objectives, assumptions, and trade-offs between scientific rigor, comparability, and practical applicability. This presentation provides an integrated overview of current debates on indicators and standardization related to natural capital, with particular attention to forests and land-use systems. It examines how indicators are used to capture ecological conditions and change, translate complex ecological processes into decision-relevant information, and support policy, corporate, and financial actions. Finally, the lecture discusses implications for Japan, highlighting key challenges and opportunities in aligning domestic Nature Positive initiatives with evolving international discourses on measurement, evaluation, and standard-setting.