Investment in securities focusing on environmental, social and governance factors is rapidly expanding in Japan amid growing attention to climate change and other issues.
The value of ESG investment in Japan has quadrupled in the last two years, according to the Global Alliance for Sustainable Investments. Japan's share was only 7% of the global total last year, but Japan has had the fastest growth rate of ESG investment in the last two years, GSIA said.
In addition to stocks from companies dealing with environmental, social and governance issues, bonds linked to projects such as renewable energy and rail construction have attracted strong demand, Mizuho Securities Co. said.
Prime Minister Shinzo Abe sought to promote ESG investment at a UN meeting in New York last month.
In 2015, the United Nations adopted 17 Sustainable Development Goals, including poverty eradication.
Japanese airline ANA Holdings Inc. has said it will contribute to efforts to achieve the ODS by promoting operations that attach importance to ESG factors.
The Government Pension Investment Fund and others urged companies to operate in an environmentally sound manner. In response, companies from various industries, including shipbuilding and retail, are issuing ESG bonds.
Source: Jiji Press