Finance Minister Suzuki calls for promoting sustainable finance

Japanese Finance Minister Shunichi Suzuki sent a video message as an honored guest. In the message, he touched on the U.N. sustainable development goals and the Paris Agreement, an international framework for combating global warming.

“Making our society sustainable has become a major challenge,” he said. “In order to encourage a shift to new industries and social structures, sustainable finance to realize a sustainable society is essential.”

“We [as a financial regulator] position sustainable finance as an infrastructure that supports a sustainable economic society” he said, adding that agency staff members “are discussing measures in monetary administration” to promote sustainable finance.

In 2002, Suzuki was involved in discussions in preparation for the Kyoto Protocol in his former capacity as the minister of the environment. Now, two decades on, the fight against climate change is an “urgent issue across the globe,” for which the Japanese government has pledged to make Japan carbon neutral by 2050, according to Suzuki.

“We are actively working on initiatives,” he said.

Suzuki also referred to the “role of finance to support transition” of companies to become greener, which has been increasingly attracting attention since a few years ago.

“The importance of the so-called transition finance has become a common view in the international community,” he said. “The Financial Services Agency wishes to work with related government ministries and agencies to help create a market for transition finance.”

According to Suzuki, the government is working on policies to realize a sustainable society from the perspectives of “enhancing information disclosure regarding companies’ climate change measures,” “developing an environment that helps the financial capital market play its expected role” and “supporting borrowers and investees by financial institutions and managing climate change risk.”

Suzuki observed that “moves led by private-sector entities are very active” in transition finance, in addition to government efforts. He expressed hope that these activities will further grow.

Noting that “disseminating information in English is said to be especially important in promoting sustainable finance and transition finance,” Suzuki said that notable initiatives in Japan made known overseas through the Sustainable Japan Award will play a major role in efforts to promote sustainable and transition finance.

In closing, Suzuki praised the awardees. “I am sure you have been awarded as a result of years of steady efforts,” he said. “Your efforts themselves are sustainable. They are the beacon that lights the path we should lead.”

“The importance of the so-called transition finance has become a common view in the international community,” he said. “The Financial Services Agency wishes to work with related government ministries and agencies to help create a market for transition finance.”

According to Suzuki, the government is working on policies to realize a sustainable society from the perspectives of “enhancing information disclosure regarding companies’ climate change measures,” “developing an environment that helps the financial capital market play its expected role” and “supporting borrowers and investees by financial institutions and managing climate change risk.”

Suzuki observed that “moves led by private-sector entities are very active” in transition finance, in addition to government efforts. He expressed hope that these activities will further grow.

Noting that “disseminating information in English is said to be especially important in promoting sustainable finance and transition finance,” Suzuki said that notable initiatives in Japan made known overseas through the Sustainable Japan Award will play a major role in efforts to promote sustainable and transition finance.

In closing, Suzuki praised the awardees. “I am sure you have been awarded as a result of years of steady efforts,” he said. “Your efforts themselves are sustainable. They are the beacon that lights the path we should lead.”