Amidst the global drive to decarbonise, Japanese businesses are paving the way with world-class environmental research, market-leading sustainable technologies, and tactical ESG investing. According to Nikkei Asia, Japanese companies’ environmental spending is set to increase by 45.8% this fiscal year (ending in March), bolstered by the government’s lucrative green stimulus funds and the country’s escape from deflation. Japan’s shift towards a net-zero future represents a wealth of untapped potential for investors. “We believe mainstream ESG investors have not yet looked into this space,” says Morgan Stanley, “from a market perspective, global investors are still underweight in Japan.” Inbound investors will find Japan’s appetite for ESG investing reflected in a broader trend – the rapid creation of new business opportunities owing to a change in attitudes amongst the younger generation.
Japan’s insurance industry is one of the world’s largest and most sophisticated.
