Opening Feature Article 1

Environmentally Friendly Property

In recent years, concerns that globalwarming and other environmental problemscould produce serious consequences in thefuture have prompted the real estate sectorto implement development projects andequip buildings in an environmentallyfriendly way, for example, by ensuringenergy conservation, extending the life ofbuildings, and introducing advancedafforestation. Such consideration for envi-ronmental protection is very important, asabout a third of the greenhouse gas (CO2)emissions in Japan are said to be attributa-ble to the building construction field, andalso in light of the impact of real estatedevelopment on ecosystems.While our lives greatly benefit from the

use of buildings as our residences and busi-ness offices, we must also make sure thatfuture generations can enjoy similarly com-fortable lives. To that end, it is essential todevelop buildings that provide a high levelof comfort and that have minimal impact onthe environment at the same time. Webelieve that environmentally friendly propertyis the key to achieving that objective.However, the concept of environmentally

friendly property has not gathered momentumapparently because the extra costs associatedwith it tend to be emphasized.Therefore, Sumitomo Trust is making

active efforts to realize an environmentallyfriendly property business that is economi-cally feasible. For example, we are studyinghow to accurately assess added value cre-ated by environmentally friendly propertyfrom the investment perspective and con-ducting a variety of activities to spread theconcept of environmentally friendly property.Photo: A technology center of Clarion Co., Ltd., which was constructed based

on environmentally conscious construction consulting provided bySumitomo Trust

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Popularizing EnvironmentallyFriendly Property byEstablishing the Evaluation ofAdded Value from anInvestment Perspective——

5Sumitomo Trust and Banking 2009 Corporate Social Responsibility Report

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■ Interview“Our goal is to enhance the long-term, sustainable value of real estate.”

Essentially, real estate should be viewed from the long-term, sustainable perspective,just like land registers can date back to the time prior to the Edo Period. However, to viewreal estate from the short-term, speculative perspective has become dominant around theworld, and as a result, it has caused great turmoil. In the meantime, climate change has beensteadily proceeding on a global scale, posing a threat to the foundation of economic activi-ties. Environmentally friendly property is intended to enhance the long-term, sustainablevalue of real estate amid the deepening social, economic and environmental uncertainties. Irespect Sumitomo Trust for its pioneering efforts to foster the new concept of environmen-tally friendly property.

TOMONARI YASHIROProfessor at the Institute of Industrial Science, the University of Tokyo

■ Interview“I wanted to create a romantic story for people at a mature age.”

I decided to produce a movie based on the book Love Letters at Sixty because I wasmoved by the collection of love letters written in response to the project. Although peoplecan fall in love at any age, there have been few Japanese movies featuring the love of maturecouples. To fill this gap, I wanted to create a romantic story for people at a mature age.Since the launch of producing this movie three years ago, there were moments that I feltlike giving up, but I managed to complete it with the support of many people. I hope thismovie again engenders a sense of importance of the bond between a husband and a wife.Husbands and wives rarely write letters to each other, except upon some special occasion,and because it is a postcard, it could convey a compact but strong message. I hope thissplendid project will continue for a long time.

KAZUSHI MIKIProducer of the movie Love Letters at Sixty

Even a Thousand ofThank Yous Are Not Enough——

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Opening Feature Article 2

Love Letters at Sixty

Love Letters at Sixty is a projectlaunched by Sumitomo Trust on November22, 2000, (the date was chosen because theJapanese pronunciation of the date soundslike Good Couple.) which invites couples tocompose love letters addressed to theirspouses. This project was born out of ourdesire to help people who have devotedtheir working lives to supporting Japan’seconomic development fully enjoy their gold-en years. Over the nine years from 2000 to2008, we received a total of 93,626 letters.The theme of the love letter project is

“Write a love letter on a postcard to yourspouse of many years and convey a sense ofgratitude that is difficult to be expressedthrough words in every day life.” The bondthat has been built over the years throughmutual sharing between a husband and awife is felt throughout the letters. We canclearly sense the deep affection and grati-tude towards one’s significant other. Of the letters submitted, about 160 let-

ters are selected each year for publicationby NHK (Japan Broadcasting Corporation)Publishing, with all the royalties from salesdonated to NHK’s year-end charity cam-paign for domestic and overseas charities,and to the Japan Guide Dog Association.On May 16, 2009, the movie Love

Letters at Sixty, which was inspired by thisproject, was released nationwide. Thismovie, into which the essence of the more than90,000 composed love letters is condensed,cleverly features the heart-warming,romantic tales of three couples. Through people’s continued support, we

have entered the 10th year since thelaunch of the Love Letters at Sixty project,and the circle of inspiration has been grow-ing. Furthermore, it is our hope to continueto share heart-warming love letters to awide range of people.* The DVD version of the movie Love Letters at Sixty is scheduled for release on

November 22, 2009. Please enjoy the heart-warming story.

7Sumitomo Trust and Banking 2009 Corporate Social Responsibility Report

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Opening Feature Article 3

SRI (Socially ResponsibleInvestment)

SRI is an investment approach that selectsinvestment target companies on the basis of notonly their growth potential and profit-generatingcapacity, but also their approach to environ-mental and social issues. In the UnitedStates and Europe, SRI has already becomewidespread as an investment approach thatcontributes to the realization of a better soci-ety, with the global balance of SRI fundsexceeding 600 trillion yen as of the end ofMarch 2009. In contrast, the balance inJapan stands at less than 400 billion yen, andits prevalence is only in a transitional stage. From early on, Sumitomo Trust has paid

attention to SRI as an approach that con-tributes to the development of a sustainablesociety and has devoted efforts to spreadingSRI by taking advantage of its own trustfunction. Since becoming the first trustbank in Japan to undertake the manage-ment of an SRI fund on behalf of a corporatepension in July 2003, Sumitomo Trust hasled the SRI market.Specifically, Sumitomo Trust has strived to

expand the market by introducing SRI fundsfor individual investors, defined contributionpensions, and public pension funds. In addition,we have supported NPOs promoting SRI, pre-senting SRI-related proposals at seminars andresearch workshops, and, providing educationabout SRI.In the future, we will continue these activi-

ties and develop SRI funds which invest inChinese stocks by taking advantage of ourresearch capability and investment experience.We are also developing SRI funds which

invest in stocks of biodiversity-friendly companiesas part of our efforts to explore the untappedpotential of financial products that can con-tribute to the sustainable growth of the society.Photo: Staff of Sumitomo Trust and the ESG Research Center of the Japan

Research Institute holding a discussion at a regular meeting

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■ Interview“Our corporate pension fund has been investing in SRI funds since 2004.”

We agree with the philosophy of SRI, an investment that reflects investors’ values and thatwill produce social change and realize a better society. We decided to invest in SRI fundsbecause we were convinced that it would provide us with just as a good return as conventionalinvestment, not just because it was considered socially responsible.

Sumitomo Trust has jointly pioneered the development of SRI funds with the JapanResearch Institute, and their consistent efforts were the decisive factor in choosing them asour trustee. I want them not to be satisfied only by sending questionnaires to investors, butto flexibly see the issue of the time such as securing stable employment opportunities at pres-ent. I am sure that their SRI funds will continue to evolve as long as Sumitomo Trust’s pio-neer spirit lives on.

HIROAKI ADACHISenior Investment Officer, Accounting & Finance Dept., Kyushu Electric Power Co.,Inc.

Investment Approach thatContributes to the Realization ofa Better SocietyExploring the Untapped Potentialof Financial Products——

9Sumitomo Trust and Banking 2009 Corporate Social Responsibility Report

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