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Japan for Sustainability Newsletter #170
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October 31, 2016
Copyright (c) 2016, Japan for Sustainability
Japan for Sustainability (JFS) is a non-profit communication platform to
disseminate environmental information from Japan to the world, with the
aim of helping both move onto a sustainable path.
See what's new on our web site: http://www.japanfs.org/en/
E-mail: info@japanfs.org
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In the October 31, 2016 issue of the JFS Newsletter:
- Community Currency 'Bunji' Changing the Way Money is Used
- Fukushima Evacuees Still Unable to Go Home Over 5 Years after
Earthquake, Nuclear Accident
- Substantial Change toward Expansion: The Sustainable Investment Market
in Japan
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Community Currency 'Bunji' Changing the Way Money is Used
http://www.japanfs.org/en/news/archives/news_id035675.html
Japan is a convenient society. People can go shopping without speaking
at all. There is no need to say a word when purchasing items, not only
through the Internet or ubiquitous vending machines scattered throughout
towns, but even in supermarkets and convenience stores. Moreover, as
globalization progresses, it is no longer unusual for products to be
delivered to buyers living on the opposite side of the planet.
Caught in the flow of trends, we often forget that there are people who
produce these goods and services and provide them to us, don't we? We
sometimes even hear "the customer is king," and "money can buy all
things ." Although such a society is convenient, it is probably lacking
in something critical if the people in it forget gratitude to providers
of goods and services.
An initiative has been introduced using a community currency in
Kokubunji, a city in western Tokyo Metropolis, to reform this kind of
society, encouraging people to think of those who provide them goods and
services. In this newsletter, we introduce the community currency,
called the "Bunji," as explained by Tomoaki Kageyama, a leader in this
initiative.
Community Currency as a Message Card
Kokubunji, with a population of around 120,000, is located about 30
minutes by train from Shinjuku -- a major urban center of Tokyo. A Tokyo
Metropolis commuter town, Kokubunji is also the historic area where the
Musashi Kokubunji Temple was founded in the mid Nara period (in the 700s).
The city established the Bunji currency in 2012. It originated from
"tickets for fun" that had been issued for an event called the Bun Bun
Walk, in which people strolled the city to discover its attractiveness.
The Bunji is about the size of a business card, and fits into the card
holder of a wallet. One hundred Bunji have an equivalent value of 100
yen (about 99 US cents) and can be used at about 25 shops in the city.
Currently, about 10,000 Bunji bills circulate there, used by around 250
people in one way or another. From this perspective, the currency is not
particularly prevalent throughout the city, nor can it be said to be
used on a large scale. Even so, Kageyama hopes that the currency will
spread slowly and steadily rather than at an accelerated pace.
What makes the Bunji unique is its rule requiring users to write a
message on it when using it. The back of each bill has ten word balloons
for filling in messages.
For example, to purchase a super-deluxe fresh glass of tomato juice
worth 850 yen (U.S.$8.42), you can pay with Japanese currency in the
amount of 750 yen (U.S.$7.43) and 100 Bunji. When using Bunji, you have
to write a short message on the back before presenting them. People who
receive Bunji in exchange for a product or service will receive the
purchasers' messages together with the money.
On the Bunji, the organizer has printed the following messages:
"'Good job!' for your services provided with care, dedication and
consideration to others.
'Thank you' for your hard work to revitalize our city --
the work provided by one person will inspire another person
to provide something to someone else and further inspire this
cycle of 'good providing' in our community."
This message conveys the essence of the community currency Bunji.
Bunji Making a Full Cycle in the Community
Community currencies have been introduced under many initiatives in
Japan, but we often hear that they are difficult to sustain for long.
One reason they fade out quickly is that there are no places or ways for
shops to spend community currencies they receive from their customers.
Even if consumers can purchase products and services in shops in their
community using a community currency, the community currency will go
nowhere but the shops if there is no place for the shops to use it in turn.
The organizer of the Bunji is now trying to solve this problem through
an agriculture-commerce collaborative approach. One such example is how
the Bunji is used by Kageyama, who runs a coffee shop named KURUMED
COFFEE. He can use Bunji as a part of his payment when purchasing fresh
produce from farmers in Kokubunji to prepare food menu items using
locally-grown vegetables and fruits. In this way, the shop has a place
to use its Bunji.
The farmers who receive Bunji from Kageyama can use them as a way to
show their gratitude to volunteers who help with their farm work. The
volunteers who receive Bunji from farmers can pay for a cup of coffee or
a food item at KURUMED COFFEE, excited at the thought that the
vegetables and fruits used there might be from the farm they helped.
Then the Bunji received from the volunteers can be used again to
purchase vegetables, or given to the coffee shop's staff (Kageyama gives
Bunji to his staff as a bonus). As in this example, Bunji are cycled
through the community, making a full circle.
Every time Bunji are transferred from one person to another, a new
message is added on the back side of the Bunji. "Thank you very much for
the tasty tomatoes," "Thank you for helping with our harvest in hot
weather," and "Thanks for your coffee and a wonderful time here!" You
can imagine how happy you would be just to read such messages written on
a community currency bill you received.
Partaking in Work Done by Someone
Kageyama says that writing a message gives us an opportunity to ask
ourselves how we have benefited. Through this process, we can turn our
thoughts to the people who manufacture the products or provide the
services we receive. The Bunji reminds us that in the background of
products and services are the people who manufacture those products or
provide those services -- an obvious fact, but easy to forget.
Obtaining things without money but with the awareness that we are
receiving someone's work encourages us to consider who performed the
work and how he or she did it, producing a sense of thankfulness. In
particular, since the Bunji is a community currency linking local work
done by local shops, farmers and residents, we can easily identify who
performed the work, and this facilitates feelings of gratitude.
In this way, the Bunji is not a mere replacement for currency, but a
medium for changing our ways of using money and its meaning as a tool.
Community Currency Bunji Changing Ways the Yen is Used
Expanding use of the Bunji in trade will also change ways of using the
Japanese yen. In other words, the number of people who are good at
acknowledging others' work will increase. Such people can be thankful to
others for the juice they drink, the cake they eat or the services they
receive. This means that the number of people conscious of receiving
others' work and skillful at expressing their appreciation is increasing.
If products or services that we provide are appreciated by others, we
tend to want to provide more. In this way, a providing-receiving circle
continues. This system works well regardless of whether money is
involved or not. In towns with many people who use money while
consciously receiving benefits and feeling a sense of gratitude, the
number of people who enjoy providing products and services to others
increases. Here, the way of using money changes and eventually the
economic approach will also change.
The Bunji provides opportunities to practice a different way of using
money. By practicing this through a community currency, the number of
people who respect the provision of products and services and the
benefits they receive from others' work will increase when using the
national currency as well. The way of using the national currency will
also change, as will the approach to the economy overall. Efforts using
the Bunji will continue.
Written by Naoko Niitsu
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What can we do to ensure society does not forget gratitude to those who
create and provide for us? Please share your ideas and leave comments!
http://www.japanfs.org/en/news/archives/news_id035675.html#comment
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Fukushima Evacuees Still Unable to Go Home Over 5 Years after Earthquake,
Nuclear Accident
Over five-and-a-half years have passed since the Great East Japan
Earthquake in March 2011 and the subsequent nuclear accident at Tokyo
Electric Power Co.'s (TEPCO) Fukushima Daiichi nuclear power plant.
Since then, big disasters have occurred in several other areas around
the world, and in Japan the 2016 Kumamoto earthquakes also caused great
damage. So, the term "disaster area" does not always evoke specific
images of Tohoku or Fukushima for many of us in Japan today. However, a
large number of disaster victims continues to suffer from the disaster
in Tohoku, especially by the nuclear accident in Fukushima. The hard
times for disaster victims haven't ended yet. We report here on the
latest situation in the Tohoku and Fukushima districts so as not to
forget their ongoing suffering.
The losses from the Great East Japan Earthquake as of March 10, 2016,
were officially reported as follows: 18,455 people dead or still missing
(not including deaths related to injuries after the earthquake); 400,326
houses or buildings either completely destroyed or half destroyed. By
prefecture in the most seriously affected areas in the Tohoku region,
the death tolls are 4,673, 9,541, and 1,613, in Iwate, Miyagi, and
Fukushima, respectively.
The estimated number of evacuees was approximately 470,000 at the peak,
but 144,471 people were still living as refugees as of February 12, 2016.
Looking at the data of estimated populations of communities in the
disaster-hit areas, comparing the population as of March 1, 2011 (before
the disaster) and the most recent population, we see that the severely
affected communities in Iwate and Miyagi have lost about one third of
their populations. In Fukushima, several communities show "minus 100%"
as the change of their population. Those ones are communities in the
areas affected by the nuclear accident at TEPCO's Fukushima Daiichi
nuclear plant, where the evacuation order has not yet been lifted even
today.
On a chart showing the timeline of evacuation orders issued right after
the disaster, we see that areas ordered to evacuate were rapidly
increasing one by one, while in the middle of all this, another
explosion occurred at the reactor No.3. The timeline shows how the
evacuation-ordered areas expanded.
Later, the government designated three evacuation zones based on
international basic safety standards on radiation exposure. We can see
on a map two significant evacuation zones: the Evacuation Order Zone
(Warning Zone) -- within a 20-kilometer radius from Fukushima Daiichi --
and the Emergency Evacuation Preparation Zone -- within a 20-30
kilometer radius. And we also see one more evacuation zone on the map,
the Planned Evacuation Zone -- a large zone including part of the
20-30-kilometer radius zone and extending to areas outside of a
30-kilometer radius, which is the area into which the wind was blowing
when the plant exploded -- meaning large amounts of radioactive
materials were carried into the area by wind.
At the same time, Emergency Evacuation Preparation Zones were also
designated where the cumulative dose during the year after the nuclear
accident was predicted to exceed 20 millisieverts (mSv) depending on
wind direction and geography. The zones were also called "hot spots,"
and an evacuation advisory was issued to their residents.
Later on, the categories of evacuation zones were revised as follows:
1. Zones where evacuation orders were ready to be lifted (where it was
confirmed that the annual cumulative dose of radiation will
definitely be 20 mSv or less). People could go home temporarily
(staying overnight prohibited) to prepare to return completely, and
resume some operations such as hospitals, welfare facilities, shops,
and farming.
2. Zones in which the residents were not permitted to live (where the
annual cumulative dose of radiation was expected to be 20 mSv or
more and where residents were ordered to remain evacuated in order
to reduce the risk of radiation exposure). People could temporarily
return home and pass through the areas along main roads to repair
infrastructure.
3. Zones where it was expected that the residents would have
difficulties in returning for a long time (where the annual
cumulative dose of radiation was expected not to be less than 20
mSv in five years and the current cumulative dose of radiation per
year was 50 mSv or more). People were legally required to evacuate
from the area.
As seen in the zone map showing evacuation orders, many areas are still
designated today as "difficult-to-return" zones.
Let's look specifically at the status of Fukushima Prefecture. Before
May 2012, the total number of evacuees was 164,655. As of March 2013,
the number from zones with evacuation orders and other areas was about
109,000. Looking at the updates in July 2016, 89,319 people in Fukushima
are still living as evacuees . Also, Tomioka, Futaba, and some other
Fukushima towns and local governments located in evacuation zones have
moved their administrative functions both inside and outside of the
prefecture.
Besides the number of deaths related directly to disaster-caused
injuries in Fukushima Prefecture, the number of disaster-related deaths
is still increasing, due to mental shock and physical conditions at
shelters, such as poor hygiene and cold. Japan's Reconstruction Agency
recognized 459 people in Iwate Prefecture, 920 in Miyagi, and 2,038 in
Fukushima as qualifying for payment of condolence money for
disaster-related deaths. These numbers surpass the deaths directly
caused by the earthquakes and tsunami.
The Tokyo Shimbun, a regional newspaper covering eastern Japan, gathered
statistics on the deaths tied to the nuclear accident by asking
municipalities in Fukushima to read through application forms for
condolence money to find out the number of people that died from
worsened physical conditions due to the stress of evacuation from the
nuclear accident. The company wrote in its newspaper on March 6, 2016,
"We interviewed municipal governments in Fukushima Prefecture and found
that at least 1,368 people had died in connection with the nuclear
accident, just from the numbers that could be confirmed." The
disaster-related death toll confirmed by each municipal government
amounted to 2,028 as of March 4, 2016. It states that 67% of the
disaster-related deaths are considered to be nuclear-related deaths.
According to statistics gathered by the Cabinet Office on the number of
annual suicides related to the Great East Japan Earthquake and Fukushima
nuclear plant accident, the number in Miyagi and Iwate prefectures is
approaching zero, while it is still increasing in Fukushima.
Victims of nuclear accident face multiple difficulties, as shown below.
* Loss of daily living
* Loss of ways to earn a living
* Loss of community
* Forced to make own decisions whether to evacuate or not, and
personally accept all risks that entail (people whose homes are
outside of designated mandatory evacuation zones)
* Divorce, family breakdown, and separation of generations due to
differences of opinion among family members
* A second mortgage to pay at the place of temporary evacuation
* Discrimination or bullying at place of temporary evacuation
* Now knowing when they can return home
* Uncertain about safety of returning home even after evacuation order
is lifted
* Unable to rebuild community because many people have rebuilt their own
lives (employment, human relations) at their place of temporary
evacuation, and leaving mainly the elderly to return home.
Before the disaster, the nuclear power plants in Fukushima were
generating power to send the electricity mainly to the Tokyo metropolitan
area, not for local use. The nuclear accident forced people to leave
their hometowns, and they are still not allowed to return to some areas.
Even if the evacuation directive is lifted, evacuees will be unable to
escape their anxieties about whether or not their homes are safe, and
this situation continues to bring sorrow and hardship to the evacuees.
Even in this situation, Japan continues to approve the restart of
nuclear power plants, some with operating permits for more than 40 years,
despite the fact that the ruined plants have not yet been cleaned up,
compensation for the accident is still not complete, and many people are
still forced to live away from their hometowns. Each of us needs to
think about the seriousness of nuclear accidents and the responsibilities
that come with using nuclear power.
Written by Junko Edahiro
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Substantial Change toward Expansion: The Sustainable Investment Market
in Japan
Having used to be limited to individual investors, Japan's sustainable
investment market is quite small, accounting for less than 0.1 percent
of the global market.
Current Status of SRI and Related Issues as It Expands in Japan
http://www.japanfs.org/en/news/archives/news_id035167.html
The Japanese Financial Services Agency (FSA), however, launched a
Japanese version of the "Stewardship Code" in February 2014 and
established a "Corporate Governance Code" in June 2015, creating
momentum toward expansion of sustainable investment by institutional
investors.
In this issue, we introduce the latest on Japan's sustainable investment
market, which is changing dynamically toward expansion as reported in
the Executive Summary of the White Paper on Sustainable Investment in
Japan released March 31, 2016, having obtained permission from its
authors, the NPO Japan Sustainable Investment Forum (JSIF).
Japan Sustainable Investment Forum
http://www.jsif.jp.net/english
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Chapter 1: Trends of Institutional Investors
Chapter 1 discusses the trends of institutional investors. The Japanese
responsible investment market started with a single fund back in 1999
and, following a long period of stagnation, began to show signs of
expansion once again following the introduction of Japan's Stewardship
Code in 2014. Japan's Stewardship Code and Corporate Governance Code,
which was introduced shortly thereafter, are like two wheels on an axle,
and have the role of guiding the relationships between Japanese
investors and corporations toward change.
One of the authors featured in Chapter 1, Mr. Kanai, explains, "for a
long time, corporations and investors in Japan have shared relationships
based on mutual non-interference." Japanese corporations have
[traditionally] held a reserved stance toward the procurement of funding
from capital markets, and investors experience little sense
of "ownership," to the point where the relationship between the two can
be described as a tacit policy of non-interference. The extent to which
Japan's Stewardship Code may be able to change this, therefore, is a
highly anticipated topic.
Of course, the addition of the Japanese Government Pension Investment
Fund (GPIF), the world's largest pension fund by assets under management,
to the list of Japan's Stewardship Code and Principles for Responsible
Investment (PRI) signatories, is sure to exert an influence on the Japan's
responsible investment markets, which have been left adrift by global
tides.
Moreover, the stance expressed by the U.S. Department of Labor regarding
the U.S. Employee Retirement Income Security Act (ERISA), stating that
"where ESG is directly related to the economic and financial value of
investment, it should be taken into consideration in the management of
assets," is also likely to have a significant influence on Japanese
institutional investors.
This is because, according to ERISA's interpretation of fiduciary duty
to date, and as the author has expressed, "SRI has traditionally been
seen as the enemy to disciples of ERISA," and the traditional
interpretation in Japan was "fiduciary duty has represented a dark cloud
that has covered over the heads of ESG advocates." GPIF's signatory to
PRI is expected to be instrumental in lifting this cloud in Japan, and
it has been emphasized that standards are now in place to allow public
and corporate pensions to start making a genuine commitment to
responsible investment.
If we take into account the actual state of Japanese pension funds,
however, we can see that there are many issues that are yet to be
overcome. Going forward, these funds, which do not manage funds directly,
will be faced with the challenge of to what extent they are able to
select asset management institutions with a penchant for ESG investment
processes as partners, as well as monitor and manage these institutions.
They must also take on the challenge of changing their traditional
interpretation of ESG as [simply] one form of active investment,
and instead work toward the incorporation of ESG into their
investment processes through "ESG integration."
This chapter introduces various examples of ESG integration at Mitsui
Sumitomo Trust Bank and responsible investment initiatives at Resona
Bank, presented by Resona Bank's Minoru Matsubara, as case studies of
initiatives at Japanese asset management firms. The chapter also
features a column by Takeshi Mizuguchi, a professor at the Takasaki City
University of Economics who has spent many years researching sustainable
investment, which discusses the perspectives of overseas observers
pertaining to trends in sustainable investment in Japan.
Chapter 2: Trends of Individual Investors
Chapter 2 explores the trends of individual investors in terms of
Japanese SRI investment trusts. The chapter is a focal point of
this JSIF white paper, which represents the only one of its kind
in Japan by presenting data related to the trends of SRI investment
trust markets over the last 16 years, adding analysis, and
making this information available to the world.
We encourage the reader to examine the chapter while considering these
market trends. SRI investment trusts were established in Japan in 1999
and, by 2007, their total investment balance had surpassed \1.0 trillion.
This was reduced by half in the aftermath of the 2008 financial crisis,
and since the second half of 2011, the figure continues to fluctuate
between \210.0 billion - \260.0 billion. In the two years since the end
of September 2013, however, the SRI investment trust balance experienced
an 11.5% decline, from \244.0 billion to \216.0 billion.
In terms of the investment scope of SRI investment trusts, the percentage
of net assets allocated to domestic stocks at the end of September rose
to 54.5% from 42.4% two years ago, while the percentage allocated to
international stocks fell from 50.0% to 40.2%. In terms of evaluation
criteria, funds under the evaluation criteria of environment represented
58.6% at the end of September 2015, down from over 70% two years earlier.
Although the funds invested in international stock under the evaluation
criteria of environment still represent the largest proportion of net
assets, the composition has been gradually diversified.
If we examine newly established and amortized investment trusts, we can
see that the number of SRI investment trusts peaked at the end of June
2010 at 94 before falling into a trend of decline. This trend later
subsided and, as of September 2015, there were 74.
For over three years from the first half of 2011, there was a continuing
trend of no new establishment. However, from the second half of 2014, we
can see that newly established trusts have come to exceed amortized
trusts.
When we observe trusts in terms of evaluation criteria, we may note the
characteristic that, over the last two years, six out of ten newly established
SRI investment trusts have been womenomics-focused. If we examine the
capital flows of SRI investment trusts, we can see that net capital inflows
are continuing to decline.
Until 2007, capital inflow was consistent with the establishment of
funds. However, following the confusion of the global financial crisis,
capital flows have continued to demonstrate net losses since
2010, regardless of trends pertaining to new fund establishment
or amortization. This net decline has continued even since the
second half of 2014, when the number of funds began to rise again.
Recent years have seen the investment environment remain relatively
favorable, and we can see an increase in the net asset balance as a
result of investment. However, this increase has been offset by the
capital outflows from cancellations and redemptions and, on the whole,
the total net asset balance has remained stagnant with little to no increase
or decrease. The analysis featured in this section was contributed by
the author, Masaru Otake, and various data were provided by QUICK Corp.
Moreover, Chapter 2 also touches upon the trends of social
impact bond markets. In Japan, the first social impact bonds for
individual investors were made available in March 2008 and, in
2014, aggregate total sales exceeded \1.0 trillion. The total sales
and issue balance as of the end of September 2015 were \1.121
trillion and \564.2 billion, respectively (calculated at the exchange
rate when figures were published; excluding balance decline due to
incomplete sales).
In comparison with figures from the end of September 2013, total sales
rose by \327.9 billion, the issue balance rose by \89.6 billion, and,
even after seven years since they were first introduced in 2008, social
impact bonds continued to show a trend toward growth. Moreover, in
November 2013 the International Finance Corporation (IFC) issued the
"Banking on Women Bond," which represented the first gender-themed
social impact bond to be issued in Japan.
The author of the chapter, Ken Tokuda, highlights three elements that
are central to the renewed growth and movement of social impact bonds:
1) alignment with stakeholders;
2) a simple composition and high interest currencies; and
3) the promulgation of "best effort" management.
Meanwhile, if we consider the issue and sale of bonds by institutional
investors, we can see that life insurance companies in particular have
begun to use investment in social impact bonds as a form of growth
investment, reflecting positive movement on this front also.
Green bonds have also started to be issued by Japanese banks,
including the Development Bank of Japan (DBJ) and Sumitomo
Mitsui Bank, and we can see model cases arising from the perspectives
of both investors and issuing bodies.
CHAPTER 3: Shareholder Advocacy
Chapter 3 touches upon shareholder advocacy. Japan's Stewardship Code
was established in February 2014, and at the end of November 2015, 201
institutions, including overseas institutions, were signed up. Most of
the main asset management companies in Japan are signatories, in
addition to asset owners such as public pension funds including GPIF,
corporate pension funds, life insurance companies, and other associated
institutions.
Meanwhile, Japan's Corporate Governance Code, which targets listed
companies in Japan, took effect on June 1, 2015, and emphasizes that
companies listed on both the first and second sections of the stock
exchange have a duty to comply with, or otherwise explain their actions
relative to, each principle. The style of corporate governance reports
has changed in line with the introduction of the Code and, from June
2015, corporations are required to provide reports in the new style
within six months of annual shareholder meetings. As of the end of
November 2015, a total of 1,089 companies -- approximately 30% of listed
companies -- have been submitting reports in the new style.
However, the Code is not enforced by law, and while the principle-based
British system emphasizes the concept of "comply or explain," Ms.
Yamasaki stresses that "until now, most Japanese corporations have
operated on a rule-based system where regulations are decided and
subsequently complied with. Consequently, there are many Japanese
corporations that are simply not used to the concept of explanation yet."
The concept of "engagement," a theme common to both codes, is also
arousing anticipation. Change continues to be apparent in the use of
voting rights for ESG proposals by shareholders and at general
assemblies, which represents one form of constructive dialogue.
For example, in recent years, proposals by individual shareholders
acting autonomously, institutional investors, and major shareholders
(individuals, investment companies, and municipal bodies) have become
increasingly common. Many of these proposals aim to increase the
involvement of shareholders in company management by enhancing
transparency pertaining to the election and dismissal of outside
directors/outside corporate auditors and corporate management.
Constructive, purposeful dialogue by Japanese investors, or, in other
words, dialogue that elicits change by enhancing corporate activities or
structure is therefore a topic of rising anticipation.
CHAPTER 4: Sustainable Finance
Chapter 4 is entitled "Sustainable Finance" and discusses the emergence
of various approaches to sustainable finance in Japan, including
financing, community investment, environmentally friendly real estate,
and private equity.
According to Keisuke Takegahara, who provides us with an introduction to
principles for financial action, as of September 2015 the number of
institutions signed up to the Principles for Financial Action for the
21st Century had expanded to 195, which extend across a wide sphere,
from major banks, securities companies, and insurance companies, to
regional and trust banks all over the country.
In this way, a formal foundation, which straddles the borders between
industrial sectors, has been established to develop ESG-considerate
investment and financing. To further develop ESG investment going
forward, however, it is going to be necessary to work on encouraging
financial institutions to take anonymous action, while addressing the
issue of varying degrees of enthusiasm between signatories.
As stated by the author of "Community Investment and Crowdfunding,"
Shunji Taga, there were 25 NPO banks in Japan as of December 1, 2015,
and as of the end of March 2015, the aggregate total of financing
provided by those 25 NPO banks rose to \3.2 billion.
>From a regulatory standpoint, the 2014 revision of the Financial
Instruments and Exchange Act deregulated micro-investment funds, or
investment crowdfunding, that utilize collective investment schemes, and
from January 2016, discussions aimed at forming legislation pertaining
to the use of dormant deposits are continuing to take place at regular
Diet sessions.
According to a bill submitted at an ordinary Diet session in 2015,
supporters of community investment represent "fund distribution
organizations" for these dormant deposits. This section also includes a
column by Masayuki Oki, which draws on his experience of investing in
micro funds.
Environmentally friendly real estate is an area that is garnering attention
from the sustainable investment sector. Until recently, there were
hardly any buildings or projects in Japan that had been recognized by
global real estate certifications (LEED, etc.). According to Hiroki
Hiramatsu, however, there are now a number of projects in Japan that
have successfully acquired such certification.
The environmental performance -- energy efficiency, for example -- of
buildings in Japan is generally good. However, verification of this by
globally recognized certification systems is appealing because it
reflects the expansion of new opportunities to invest responsibly
There are 3.86 million companies in Japan, and as listed companies
only represent 3,500 of these, the remaining 99.9% are unlisted. Some of
these may well be selected to form part of investment portfolios,
however, as Shunsuke Tanahashi emphasizes: "69.4% of all Japanese
workers are employed at small- and medium-sized businesses, and these
businesses are responsible for creating 53.3% of total added value. We
can naturally assume, therefore, that thinking seriously about
investment in the private equity segment is akin to thinking about the
sustainable expansion of the Japanese economy."
Japan's responsible investment is still primarily focused on investments
in listed stock, and this section discusses points to be taken into
account when engaging in private equity investments to ensure the
proliferation of responsible investment in this field.
>From Executive Summary of the White Paper on Sustainable Investment in
Japan 2015 by Japan Sustainable Investment Forum
http://japansif.com/2015whitepaper.pdf
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[JFS Web Site Additions of the Month]
- JFS "Sustainable Development Goals" (SDGs) Now Open!
(2016/10/18)
http://www.japanfs.org/en/projects/sdgs/index.html
- This month's cartoon:
"Well, at your current temperature, those are natural
symptoms...." (2016/10/07)
http://www.japanfs.org/en/manga/manga_id035663.html
- JFS Newsletter No.169 (September 2016)
Chiiki Mirai Juku : Local Communities Support Government's
Tutoring Program to Fight Child Poverty in Japan(2016/10/18)
http://www.japanfs.org/en/news/archives/news_id035660.html
'work with Pride' (wwP) Launches Index to Promote
LGBT-inclusive Workplaces in Japan(2016/10/10)
http://www.japanfs.org/en/news/archives/news_id035659.html
What are the Secrets to a Long, Healthy Life? From Japan's
Longest-Lived Prefecture, Nagano(2016/09/30)
http://www.japanfs.org/en/news/archives/news_id035655.html
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