Takumi Fujisawa

In 2020, we defined our purpose as “Trust for a flourishing future”. Sumitomo Mitsui Trust Holdings has solved a variety of social issues and contributed to the development of society with a completely client-oriented mindset. The fiduciary relationship which we have built by solving the issues of our clients and society since our founding is our most precious asset and the foundation on which we rely. To fulfill this goal, the intrinsic motivation of each and every employee is vital. And the key factor in motivation is well-being.

Improving the well-being of everyone in the company is at the center of our latest medium-term management plan. The plan calls for us to tackle well-being head-on. We have even established a KPI called AUF* to help us in formulating initiatives that contribute to resolving social issues and creating and expanding markets.

With the aim of strengthening our human capital for future adaptation, we plan to turn out autonomous career-oriented human resources through initiatives focusing on four key elements: health management, strengthening engagement, diversity management to increase organizational strength, and strengthening human resources.

Sumitomo Mitsui Trust Holdings promotes financial well-being under the catchphrase, “Healthy life, healthy finances.” Just as people should take good care of their physical and mental health, financial well-being means the ability to actively and soundly manage money. This is consistent with our goal of promoting autonomous human resources. Higher financial literacy leads to greater overall well-being.

Ideally, as employees improve their financial well-being, they apply their acquired knowledge and experience to contribute to the well-being of customers and society. The results of our employee attitude surveys reveal a virtuous cycle: the greater the financial well-being of employees, the more strongly they feel that they are contributing to the well-being of customers and society. In 2019, we launched the “Asset Future Research Institute.” To help realize the Kishida administration’s vision of making Japan an asset-management nation, we are committed to financial education from the perspective of investment.

* AUF = Assets Under Fiduciary = balance of assets under management + balance of assets under administration + proprietary investments

Suzuki: The new growth strategy to overcome the declining population is the most important issue for Japan. Please explain this.

Matsue: A keyword for growth in the face of a declining population is “value circulation.” We advocate that growth strategies for businesses and regional economies be focused on circulation. By getting all resources (people, goods, money, and data) circulating across various boundaries, we can generate more added value, even with a falling population. If this circulation of resources is synergistically combined with opportunities to: (1) link with global growth, (2) utilize and rediscover real-world spaces, (3) expand virtual spaces, and (4) leverage various assets accumulated in history and over time, new markets will be created, resulting in economic added value.

Yanagawa: On top of population decline, ecosystems in some areas of Japan have stagnated due to the withdrawal of companies. As well as building new connections with industries, regions, and companies, we also need to repair broken connections.

In policy discussions, directions and goals are set, but the urgent need to get ecosystems moving again tends to be forgotten. The cultural value and accumulated resources of regions are great assets. The key point for local economies is how to convert them into added value.

Suzuki: The biggest lack I see right now is in the circulation of people. When people circulate, more contacts occur, leading to good relationships and fresh creativity. In the past, connections were typically made when people from the same industry came together, but it is also important to create sub-platform-like places where diverse people can meet on a daily basis. In terms of national policy, what trends in well-being and regional revitalization do you anticipate over the next few years?

Yanagawa: As well-being becomes more prevalent globally, we are getting more specific about what indicators and measures to use for increasing well-being, and how to view the relationship between monetary added value and well-being. Although well-being has not yet been quantified in the same way as gross domestic product (GDP), we definitely need to consider it comprehensively, using a variety of indicators.

Suzuki: I am in charge of reporting on Gross Domestic Well-being (GDW) at our well-being conferences. Since September, I have also been publishing our factor analysis at the same time. The most important factor is how the finances of individual households are subjectively perceived. We’ve seen that when we analyze value added per capita and “how people feel” (subjectively), the correlation between the two is very positive, at least with GDW.

Matsue: There are some municipalities across Japan where population is declining, but added value per capita is increasing. One example is Hachimantai City in Iwate Prefecture. In this City, the local government has teamed up with the private sector and set up a unique initiative called “Human Resource Department of our Town”, attempting to consolidate HR department functions across different local companies. Creating connections in a way that fits the characteristics of a locality can increase the added value of local industries. The rotation of resources and the accumulation of knowledge and experiences will help the local community increase added value per capita. But first of all, it is important to think about how to adapt to the particular characteristics of the locality.

Suzuki: Who will lead this effort to get value circulation moving?

Matsue: Governments and companies need to collaborate and take a people-centered approach to support the growth and self-realization of individuals and increase human well-being. The most important stakeholders of any company are the workers. The essential goal is to increase the value of people by investing in people, including wage increases.

Yanagawa: It is difficult for the government to do everything these days, but the essential thing is for all parties to create new connections and ideas. Steadily establishing more and more small businesses, including venture companies and social enterprises, is the key to revitalizing local industries.

Lai: We are familiar with Sustainable Development Goals. But there have been conversations lately on moving the narrative away from development and towards wellbeing. We can think about a Sustainable Wellbeing Goal. The objective is to think about wellbeing of people, wellbeing of the planet, and equality of wellbeing among populations.

Clifton: Our aim is to measure well-being globally and comprehensively, moving beyond only relying on the traditional Western-centric frameworks.

Daly: To make well-being indicators as influential as gross domestic product (GDP), it will be important to increase measurement frequency and granularity.

Lai: What are your thoughts on the importance of employee well-being and the need to measure it?

Daly: It won’t be possible to achieve well-being unless the condition of employees can be assessed. Simply asking questions about well-being generates positive expectations that improvements can be achieved. Well-being is also linked to business outcomes. It benefits the health of both the organization and the individual.

Hughes: New Zealand now has a “well-being budget” and is running a variety of experiments. Policymakers tend to focus on symptoms without determining the root causes of social problems. We need to go one step further, by reforming policies, processes, narratives (narrative co-creation), and governance. To make well-being a default concern, we need a new governance framework. In New Zealand, there is a framework that emphasizes indigenous spirituality and connections to the environment.

Lai: How should narratives be changed to realize the goal of sustainable wellbeing?

Hughes: In terms of the environment, I think the spirit of connection to the planet is important. It’s a powerful narrative!

Clifton: The narrative that the goal of the organization and employee well-being are incompatible needs to be changed. Some business executives care only about the satisfaction of their customers. They don’t realize that if employees are miserable, customers will be adversely affected. The connection between employee and customer emotions cannot be ignored.

GDP is an important indicator, but it doesn’t tell us much about overall quality of life. We need a complementary index that tells us about well-being.

Daly: There are still some investors and executives who say that well-being doesn’t impact business decisions, but that is incorrect. If they go on using only traditional indicators, they will miss out on an important shift.

Lai: Are there any examples of successful collaborations between the public and private sector that are specific to wellbeing?

Hughes: One thing that has worked successfully in New Zealand is disclosure. The stock exchange requires companies to disclose their climate change impacts in annual reports.

Clifton:We need indicators to monitor both the economy and wellbeing. Instead of just pursuing economic growth, leaders need to try and increase wellbeing.

Hughes: I think it would be good to put more emphasis on the government’s budget management and audit functions, to link them more closely to ultimate well-being.

Lai: We should also hear the perspectives of business leaders.

Clifton: In the US, mental health crisis hotlines have been set up, while in the UK, a Minister for Loneliness has been appointed. Education for company managers is also essential, which includes basic training.

Daly: The business community needs to focus on being innovative, but they must also come up with solutions to deal with the mental health crisis that is affecting the whole world.

Clifton: If an employee is suffering from burnout at work, the boss will try to find out why. However, there is never just one reason. The only real solution is to listen to the person. It’s important to be a good listener.