Sumitomo Mitsui Financial Group, Inc. | Disclosure of financial risk by audit committee at Sumitomo Mitsui Financial Group, Inc.

Status
Filed
AGM date
Previous AGM date
Proposal number
3
Resolution details
Company ticker
8316
Lead filer
Undisclosed filer
Resolution ask
Report on or disclose
ESG theme
  • Environment
  • Governance
ESG sub-theme
  • Climate change
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Japan
Resolved clause
Noting the Company’s increasing acute and systemic financial risks due to material issues such as
malfeasance and climate change, and the duties of the audit committee to oversee the effectiveness of
directors as well as executive officers, in order to enhance long-term value, the Company shall disclose the
following in the Audit Report:
(i) the audit committee’s assessment of the appropriateness of our company’s strategy, policies and
processes to mitigate financial risks associated with identified material issues (including, the
appropriateness of the process and results of reviewing the financial risks to which our company may be
exposed, both when risk management is properly implemented and when it is inadequate) and the
reasons of the assessment, and,
(ii) the framework, including the criteria for the assessment, for auditing the oversight of the Company’s
risk controls with respect to identified material issues
Supporting statement
This proposal requests the Company disclose the necessary information in the Audit Report for shareholders
to determine whether the Directors of the Company are effectively monitoring risk.
Shareholders are unable to assess whether the board and its current processes are adequately monitoring the
management’s use of risk controls. Given the recent cases of malfeasance in the banking sector in Japan,
shareholders have legitimate concerns over the effectiveness of the current board oversight system. This
doubt extends to whether the oversight system for other material risks (such as climate-related financial
risks) is effective.
The audit committee’s report for FY2023 identified no issues with the oversight by the Directors, for
example. However, shareholders are not advised of the basis of such an assessment. The Company should
disclose the basis of its conclusion, given that they are accountable under the Companies Act and the
Corporate Governance Code to the shareholders.
This proposal would improve the corporate governance of the Company and lead to the enhancement of midto long-term corporate value. It would benefit all shareholders, including the shareholders who are not given
access to the Directors.

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