Sustainable Investing in Japan: An Agenda for Action

Interest in sustainable investing and sustainably invested assets under management are growing rapidly in Japan. But despite this enthusiasm and growth, few mainstream investors, financial advisors, and investment consultants in Japan are embracing the practice. To address this divide, the Sasakawa Peace Foundation (SPF) and The Investment Integration Project (TIIP) released a new report that identifies the challenges and opportunities for sustainable investing in Japan.

The report, entitled “Sustainable Investing in Japan: An Agenda for Action,” examines why few Japanese investors incorporate sustainable investing into their practices and recommends breakthroughs needed to grow the practice in Japan.

Co-authored by William Burckart and Jessica Ziegler of TIIP, the report is informed by an extensive literature review on sustainable investing in Japan. It is also informed by consultations with more than 50 industry experts, including from the CFA Institute, Financial Services Agency (FSA), Government Pension Investment Fund (GPIF), Nissay Asset Management Corporation and Sumitomo Life to name a few. These experts are supporting investors’ embrace of sustainable investing and working to bring it into the mainstream.

The report summarizes findings from the project’s research and recommends a series of breakthroughs needed to grow the approach, including:

· Increasing the visibility of sustainable investing in Japan;
· Dispelling common myths about the practice;
· Providing investors with practical guidance and tools; and
· Coordinating related policy efforts.

The Agenda for Action also discusses next steps for sustainable investment elsewhere in Asia.