Impact Investing Forum
London. Nov 18-19. (Virtual)
Japan to use foreign reserves for ESG investments ReutersJapan to use foreign reserves for ESG investments ReutersJapan to use foreign reserves for ESG investments Reuters
Japanese national flags are displayed in front of buildings in Tokyo’s business district, Japan, February 22, 2016. REUTERS/Toru Hanai/FilesTOKYO (Reuters, Oct 8) – Japan will use foreign reserves to purchase securities that meet environmental and social governance (ESG), Shunichi Suzuki, Finance Minister, said Friday. This follows a trend among global investors to combat climate change. Suzuki stated that revitalizing ESG investment will help to achieve a greener society, and carbon neutrality by 2050. I believe that investment in ESG bonds will rise as the ESG bond market expands. “The minister believed that Japan would be the first Group of Seven (G7) country to use foreign reserves to invest in ESG bonds. He hoped other countries would follow his lead. In July, the Bank of Japan announced that it would begin buying green bonds. This was in addition to other central banks that have already begun to use their institutional weight to address the problem of global warming. Read more Japan’s foreign reserves, which total $1.4 trillion are second only behind China’s. Read more Japan’s foreign reserves are second only to China’s at $1.4 trillion.