Quietly does it as Sumitomo Mitsui Banking Corporation celebrates 60 years of service in Hong Kong
Sumitomo Mitsui Banking Corporation (SMBC) is one of the world’s oldest corporations with more than 145 years of operating existence as Mitsui Bank commenced its business in 1876, Sumitomo Bank was established in 1895, both banks were merged in 2001. The discreet global bank with about US$2 trillion of total assets aggregated from 40 worldwide locations has been carrying out its business serving customers with patience and diligence. On December 12, 1962, SMBC opened its doors for business in Hong Kong. Today, the SMBC Hong Kong Branch tends to the financial services needs of some of the largest global organizations headquartered or operative in Hong Kong.
Unwavering commitment
Named Global Bank of the Year four times between 2017 and 2021 by Project Finance International, this accolade aptly underscores SMBC’s willingness and ability to effectively deploy its strong balance sheet and debt-led expertise. It has helped build some of the most important and complex critical infrastructure projects ranging from ventures in the energy security and supply chain fields to the provision of desalination plants worldwide.
Always ahead of the curve, this pioneer in ESG finance prefers to let its actions speak louder than words.
Sumitomo Mitsui Banking Corporation (SMBC) is one of the world’s oldest corporations with more than 145 years of operating existence as Mitsui Bank commenced its business in 1876, Sumitomo Bank was established in 1895, both banks were merged in 2001. The discreet global bank with about US$2 trillion of total assets aggregated from 40 worldwide locations has been carrying out its business serving customers with patience and diligence. On December 12, 1962, SMBC opened its doors for business in Hong Kong. Today, the SMBC Hong Kong Branch tends to the financial services needs of some of the largest global organizations headquartered or operative in Hong Kong.
Unwavering commitment
Named Global Bank of the Year four times between 2017 and 2021 by Project Finance International, this accolade aptly underscores SMBC’s willingness and ability to effectively deploy its strong balance sheet and debt-led expertise. It has helped build some of the most important and complex critical infrastructure projects ranging from ventures in the energy security and supply chain fields to the provision of desalination plants worldwide.
Encapsulated in its Mission to become “a trusted global solution provider committed to the growth of our customers and advancement of society”, SMBC’s longevity and success are due in no small part to its DNA.
Being polite, acting with integrity, staying consistent and committed to building mutually respectful relationships are par for course. So is taking a long-term approach to building a business that directly helps organizations access working capital and capital investments funding critical to survival and prosperity through good times and bad. Getting the job done with a clarity of purpose but without fanfare, just because contributing to society is the right thing to do, is the modus operandi of SMBC’s global teams pulling together with the same conviction and shared purpose from Tokyo to Hong Kong and beyond.
Into the future with Hong Kong
In Hong Kong, SMBC looks forward to supporting the financial services needs of its customers to realize a more vibrant and sustainable future by bringing together a diversity of people and companies in the Greater Bay Area and further afield. It is interesting to note that a Hong Kong designer came up with SMBC’s global “Rising Mark” logo that signifies positive development with its customers, shareholders and society whilst its green corporate colours express youthfulness, intellect, tradition and reliability.
With a commitment to achieving net zero greenhouse gas emissions in overall investments and loan portfolios by 2050 and within its internal operations by 2030, it’s not surprising that SMBC is a member of the Net-Zero Banking Alliance and the Net Zero Asset Managers Initiative. In Hong Kong, SMBC is a member of the Hong Kong Green Finance Association and sits on the green and sustainable loan committee of the Asia Pacific Loan Market Association to help drive ESG standards for syndicated loans across the region. SMBC has currently achieved US$58.5 billion (JP¥8.2 trillion) in sustainable financing against a target of US$214.2 billion (JP¥30 trillion) (including US$142.8 billion or JP¥20 trillion in green funding) in 2030, with US$53.5 billion (JP¥7.5 trillion) of that already coming from green financing. With eight years left to reach the target, the going is looking good. In 2021, the bank ranked third on the Refinitiv League Table for ESG and green financing in the APAC region. SMBC was also named the first in APAC and Top Tier Lender for green and ESG loans in 2021 in deal count by Refinitiv Reuters LPC.
In Hong Kong, SMBC is proud to have garnered award recognition from the Hong Kong Quality Assurance Agency (HKQAA) for the second consecutive year for its commitment to making sustainability a reality in the local community.
A tradition of care
SMBC’s green credentials have been forged for over a century long before CSR and ESG became commonly understood acronyms. In 1894, the second Director-General of Sumitomo Teigo Iba aligned the corporation to embark on the Great Afforestation Plan of the Besshi mountain area, an endeavor that Masaya Suzuki, the third Director-General, carried out. At that time, Sumitomo was a zaibatsu (financial combine) with a diverse business encompassing mining, manufacturing and finance that originated from its Besshi Copper Mines in Niihama, Ehime Prefecture. Between 1691 and 1973, when the mines were operational, they produced approximately 700,000 tons of copper, shaping the development of the industrial city and Sumitomo. But two centuries of tree felling to make the lumber and charcoal essential for mining operations inevitably devastated the once verdant Besshi mountains.
In the spirit of “repaying for what was reaped from the land”, Iba instigated the restoration of the Besshi mountains. Over the next 100 years, the corporation planted two million saplings annually, resulting in a regenerated forest flourishing with a diversity of plants and wildlife today. With Iba’s project serving as a forerunner of Sumitomo’s corporate environmental measures, it is clear why SMBC is imbued with a deeply-rooted sense of purpose to work towards purposeful objectives that balance stakeholders’ interests over the long term.
The same care tradition runs deep in Hong Kong, where SMBC has attained the Caring Company mark for three consecutive years. Through actively fostering the well-being of its 500-strong staff and implementing its society outreach program, which includes volunteering contributions to Beyond Environmental Arts Festival, and donations to Food Angel, The Salvation Army and Lok Sin Tong Benevolent Society, the Sumitomo spirit of being caring and connected to one’s environment is alive and well.
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