NYK Embraces Japan’s New Asset Owner Principles
On October 14, NYK officially adopted the Japanese government’s innovative “Asset Owner Principles,” a set of five guiding standards aimed at enhancing investment, governance, and risk management for asset owners. These principles are pivotal in the government’s effort to position Japan as a leading asset management hub, ensuring asset owners meet their responsibilities while delivering sustainable outcomes. NYK’s commitment to these principles aligns with its strategic focus on safety, environment, and human resources, which are vital to its operational framework.
Commitment to Sustainable Asset Management
NYK’s adoption of the Asset Owner Principles reinforces its dedication to responsible asset management. The principles require asset owners to prioritize the best interests of their beneficiaries by setting clear investment goals and policies based on thorough assessments of economic conditions. NYK emphasizes the importance of protecting participant rights, particularly in the context of its defined benefit corporate pension plan. This commitment is reflected in its structured investment policy and regular reviews to adapt to changing economic landscapes.
To ensure these principles are effectively implemented, NYK has established a Pension Committee tasked with developing and reviewing investment guidelines and asset allocation strategies. This committee’s role is crucial in evaluating and selecting investment trustees, ensuring that decisions are informed by expert knowledge. NYK also seeks external insights from trust banks and asset management firms to enhance its investment approach. This collaborative approach is essential for achieving the company’s investment objectives and maintaining a robust governance structure.
Engagement and Accountability in Asset Management
Transparency and stakeholder engagement are key components of the Asset Owner Principles, and NYK is committed to fulfilling these responsibilities. The company provides regular updates on fund management through its intranet, ensuring that stakeholders are informed about the status of asset management. This practice not only enhances accountability but also fosters trust among participants.
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Furthermore, NYK recognizes the significance of sustainable growth for investee companies. The company is an active member of the Corporate Pension Stewardship Promotion Council, which aims to enhance the value of investee companies through collaborative monitoring efforts. This initiative focuses on improving medium- to long-term investment returns while supporting ethical business practices. By adhering to these principles, NYK aims to create a responsible investment environment that benefits both its participants and the broader economy.
