Recent SRI Market Trends In Japan And Implications For ESG Research
Upcoming SlideShare
Loading in...5
×
 

Recent SRI Market Trends In Japan And Implications For ESG Research

on

  • 1,118 views

Mariko Kawaguchi, Head of CSR, Director of Social Investment Forum Japan - Daiwa Securities Group - Japan

Mariko Kawaguchi, Head of CSR, Director of Social Investment Forum Japan - Daiwa Securities Group - Japan

Statistics

Views

Total Views
1,118
Views on SlideShare
1,110
Embed Views
8

Actions

Likes
0
Downloads
22
Comments
0

4 Embeds 8

http://tbliconference.com 5
http://www.lmodules.com 1
http://www.tbliconference.com 1
http://www.slideshare.net 1

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

CC Attribution-NonCommercial-ShareAlike LicenseCC Attribution-NonCommercial-ShareAlike LicenseCC Attribution-NonCommercial-ShareAlike License

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Recent SRI Market Trends In Japan And Implications For ESG Research Recent SRI Market Trends In Japan And Implications For ESG Research Presentation Transcript

  • Japanese SRI Market & ESG Research : Last 10 Years & Next 10 Years May 27 th 2010   Kawaguchi, Mariko General Manager, Daiwa Securities Group Inc. Director of Social Investment Forum Japan
  • Trends of over-all Sustainable Finance
    • 1999 First Eco-fund being launched, since then, number of Ecofunds and SRI funds are increasing.
    • 2004 Development Bank of Japan, started Eco-conscious lending scheme for business sector  ( 174 loans, 250bil yen)
    • Since 2005, Mega and regional commercial banks began to offer eco-conscious deposit and eco-conscious loans (mortages and car etc) and other. Insurers began to offer eco-conscious insurance products
    • 2009.11 First Microfinance bond being launched by Daiwa Securities, attracting new type of investors.
  • 上場 未公開   large         Risk       小 Social venture capital ESG investment Ecofunds Sri funds Eco-business funds equity bonds deposits Engagement Community investment Microfinance bond Community bond Eco-conscious loans Ecobanks   large   scale       small     Generally Accepted SRI Eco-property investment   Sustainable Financing : General Image
  • Japanese individual’s financial assets: 個 人 衣 食 住 ・ 趣 味 等 モノとサービス 金 融 資 産 エコマネー 意 識 し て い る お 金 現金      39兆円 (3%) 預貯金    730兆円(51%) 証 券 投 資 債券    26兆円  (2%) 株・出資金      102兆円 (7%) 投資信託 32兆円  (2%) 財形等     25兆円 (2%) 保険      262兆円(19%) 年金     146兆円(10%) その他       56兆円 (4%) 無 意 識 の お 金 お金 労力 1420兆円 投融資 出典)日銀統計( 2001 年)より Cash 39tri (3%) Deposit 30tril(51%) Fixed income 26tril(2) Equities 102 tril(7) Mutual Funds 32 tril(2) Zaikei 25 tri (2) Insurance 262tril (19) Pensions 146trill (10) High exposure to low risk assets
  • Current Japanese SRI Market (578 | bil, 09) Little Presence of Institutional Investors Supported by Individual Investors Source: SIFJ SRI Bi-annual Report
  • Trend of SRI Retail Funds Y mil No of funds Total Asset has recovered 35% from the bottom (Mar 09) Number of funds are basically increasing. Interest toward ESG is still on the rise, due to eco-theme funds
  • Newly Launched SRI Funds by Theme Focus on Environment, small interest for social issues
  • In short, Japanese market has been…
    • Japanese SRI market has been developed by retail market .
    • Eco-funds first attracted attention as a first eco-product in financial arena, and was welcomed by individual eco-conscious investors.
    • Financial institutions started to market eco-funds/SRI-funds in order to widen their product line up.
    • As a result it is still B to C market and size is still tiny considering the market size of Japan.
    • SRI service industry, both ESG research and asset management is still at very early stage.
    • The absence of large public pension funds commitment is the factor of such immature market.
    For the last ten years
  • Signs of change are now being seen…
    • Impact Investment type bonds have been attracting individual investor and media attention.
    • Since Mar 08, 260bil Impact Investment type bonds have been sold (with Daiwa 73% share), including Microfinance bond, Vaccine bond, Green Bond, Water bond.
    • Some positive move among institutional investors such as labor union (workers capital) and some pension funds.
    • Many investors are now aware that (at least) climate change issue is out of ‘SRI boundary’ and also water. ]
    • Many Japanese companies are now integrating CSR issues as part of their business strategy. CSR can be a factor of competitiveness.
  • What do we expect for the next 10 years?
    • Japanese individual investors accept the idea of integrating ESG issues with investment , if the impact is clear with low risk return.
    • Some Large institutional investors recognize that ESG issues are more meaningful for their business due to pressure from outside/domestic. Especially, GPIF investment committee began to discuss about ESG)
    • ESG research service is developing in terms of quality and quantity ( CSR reports, CDP, CDSB, GRI, Bloomberg, etc)
    • Last ten years were period of hard working cultivation of the land and time to seed and harvest is coming closer!!
    Thank you for your kind attention!