Japanese PM Fumio Kishida has announced a plan aimed at diverting a significant portion of its massive savings towards sustainable investment vehicles.
By the end of 2023, Japan plans to introduce an impact investing programme to foster a conducive environment for impact investing both locally and globally.
Major pension funds in Japan will be urged to join the UN Principles for Responsible Investment (PRI).
Kishida has emphasised the government’s commitment to collaborate with seven of Japan’s largest pension funds to speed up their inclusion in the PRI. Japan’s Financial Services Agency (FSA) is in the process of drafting new guidelines which will be available for international application.
Under its G7 presidency, Japan has launched the Impact Investment Initiative for Global Health (IIIGH) aiming to bolster UN Sustainable Development Goal 3. Japan is poised to lead the charge in issuing sovereign climate transition bonds through its ‘GX’ Green Transformation policy, targeting a shift away from reliance on fossil fuels.
Japanese Prime Minister Fumio Kishida said, “Sustainable and impact investments are not just philosophies; they are at a crucial phase of implementation.”
He added that Japan is gearing up to be the inaugural country to release sovereign climate transition bonds as a segment of its ‘GX’ Green Transformation agenda, aiming to fund the transition of the economy from fossil fuel dependency.
Source : FINTECH