Plenary session

Abstract (click to Japanese version)

Nissay Asset Management was founded in 1995 as an asset management company of the Nippon Life Group. We signed the United Nations Principles for Responsible Investment (UN-PRI) in 2006 when it was launched, and have been involved in ESG management for more than a decade. The issue of climate change is a topic that the world must work together to address, but there are both risks and opportunities in addressing carbon neutrality, and the role of the asset management industry is becoming increasingly important. As a member of the Net Zero Asset Managers Initiatives (NZAMI), Nissay Asset is striving to achieve net zero CO2 emissions from assets under management by 2050.

Investments related to "ESG" and "carbon neutrality" are now commonplace. In the past, investments in companies that excelled in ESG initiatives were called "ESG investments. However, in order for society as a whole to move toward carbon neutrality, it is important to invest not only in "good investments" that actively address ESG issues, but also in "bad investments. We must promote a paradigm shift. We believe that it is extremely important to provide transition finance to companies with large carbon footprints that are willing to make the transition to net zero, including business restructuring, or to make impact investments that contribute to net zero through innovation and other means.

In order to achieve carbon neutrality, for example, it is important to optimize the entire cycle of electricity generation, storage, transmission, use, and reuse, rather than partial optimization. Such efforts require technological innovation and infrastructure development in each of these areas, which in turn require a great deal of capital, and as an asset management company, our role in supporting such efforts in the form of transition finance and impact investment is now increasing.

Our corporate slogan is "A Good Investment for the Future" to help realize a sustainable society. As an asset management professional, we hope to play a role in the realization of a sustainable society by identifying and investing in good investment opportunities that will enable us to achieve both a good return and contribute to improving environmental and social sustainability over the medium to long term.

Abstract

Biodiversity and functioning ecosystems are essential for livelihoods and economies. Biodiversity is important to business in terms of providing inputs, but also in terms of preventing ecosystem collapse and loss of GDP. In addition, nature provides key life support systems in terms of climate change mitigation and adaptation, but poor ecosystem health can also exacerbate these climate risks.

Globally, as awareness and action on climate change grows, there has been a shift in focus towards nature related risks and impacts, and a rapidly growing discourse on natural capital and biodiversity in the business sector.

But time is running out. To achieve the Convention on Biological Diversity’s global of protecting and restoring the Earth's biodiversity, and transforming society’s relationship with biodiversity and nature over the next decade through post-2020 framework process – businesses, governments and communities need to support each other and take action now.

Businesses have a role to play by engaging with emerging frameworks such as the Task Force on Nature Related financial disclosures; participating in implementation projects; conducting biodiversity footprints (for example using the PBAF guidance) to understand impacts of their business, as well as the dependencies of their business, on nature; and integrating these considerations into business strategy so as to drivee change through core business. Systemic thinking is needed to address challenges and enhance opportunities, including those of a Just Transition that integrates people, planet and the economy.

Abstract

Achieving ESG – Environmental, Social, and Governance dimensions and growing sustainability helps the corporate establish the resiliency and drive long-term value for the businesses. Thus, ESG has become a must have and huge opportunities to satisfy customers, employees, and other stakeholders. To become a sustainable business, listed companies are required to do thing differently while not enough to turn just a profit. As the world has changed drastically and is facing challenges all around, I do believe that ESG is not just a framework to create a business growth, rather, it is the way to help all sectors including government sector, private sector, and public sector to collectively come together to build the right balance circumstances and deliver a better world for our next generation.