SMBC invests in Japan Hydrogen Fund, SMDAM to be co-manager

Sumitomo Mitsui Banking Corporation (SMBC’) has executed an investment agreement with the Japan Hydrogen Fund as one of the major LP investors, and Sumitomo Mitsui DS Asset Management (SMDAM) participates in the fund as a service provider.

This LP investment from SMBC is made through the ‘’Social Value Creation Investment Fund’’ announced by Sumitomo Mitsui Financial Group (SMBC Group) which is a framework to support SMBC Group’s customers’ creation of new businesses, development of new technologies and fostering of industries themselves.

The Fund will be managed by three companies: SMDAM, Advantage Partners (AP), and The Japan Hydrogen Association (JH2A). SMDAM will provide fund management services and sustainable investment and Japan Impact evaluation services, AP group will be responsible for investment advisory services and operational support, and JH2A will be in charge of the promotion of collaboration with its committees and 448 member companies and organizations.

SMDAM believes that not only financial information but also non-financial information such as sustainability becomes more and more important in gaining insight into the stability of each business over the medium to long term and will operate the Fund with full consideration of sustainability aspects through sustainable investment evaluation.

To address climate change, the Fund aims to build a hydrogen supply chain in Japan and around the world by providing hydrogen-related companies and projects with necessary funds through collaborating extensively with public and private institutions. On June 6, 2024, to build a hydrogen supply chain within the Indo-Pacific Economic Framework for Prosperity (IPEF), the Ministry of Economy, Trade and Industry of Japan (METI) set up an IPEF Window within the Fund. It laid out a framework for public-private collaboration to strengthen the financing of hydrogen-related companies and projects in the IPEF region.

Through its investment and participation in the Fund, SMBC Group will not only contribute to the realization of a hydrogen society but also will support hydrogen-related projects that are expected to expand further in the future, thereby contributing to the development of a new energy market and the decarbonization of the real economy.

SMBC Group is promoting hydrogen-related initiatives on a global basis that transcend the framework of the financial industry toward the implementation of a hydrogen society.

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