Have you heard of "ESG investment" that has been in the news lately?
ESG stands for Environmental, Social, and Governance. ESG investment is a general term for investments made by investors, etc., who consciously consider ESG-related information in addition to financial information when making corporate investment decisions.
ESG investment was advocated by the United Nations in 2006 and has been attracting interest as a new evaluation index to measure corporate value, especially among investors in Europe and the United States.
In ESG investment, attention tends to be focused on environment, which is of high general interest and where it is easy to grasp the concrete details of a company's efforts; and on society, which includes the improvement of diversity and human rights issues. However, governance is also an important aspect of ESG investment, as a survey* indicated that the most important aspect of ESG investment is governance, which ensures the sound operation of a company.
One of the most notable aspects of ESG investment in recent years has been the expansion of "green finance," which is financing to improve energy efficiency, reduce waste emissions, and introduce renewable energies.
In 2015, around the same time as the spread of ESG investment, the UN Summit adopted the SDGs, international goals to solve global social issues and realize a sustainable world. In an effort to attract ESG investment by incorporating the SDGs into their business management, companies are starting to take actions to achieve the SDGs.
For more information on the 17 goals of the SDGs, please refer to the website of the UN.
Overview of the ESG Investment Category
In the "ESG Investment Category", "ESG Investment Subcategory" invites financial businesses (Asset owners, Asset managers, Rating agencies, etc.) that are promoting ESG investment; and the "SDGs Subcategory" invites businesses (including financial businesses) that are practicing SDG management. "SDGs Category" invites businesses (including financial businesses) that are practicing SDGs management initiatives.
The Governor's Special Award will be presented to a business that is particularly outstanding in its green finance initiatives from among the applicants (about three institutions) selected as the most excellent businesses.
※Source:2020 Annual ESG Manager Survey
Submission of needs and challenges (May 10th ~ June 10th)
Submission of resolutions (July 21st ~ September 28th)
First-stage screening (October(TBD))
Final screening (November(TBD))
Award Ceremony (February, 2022(TBD))
The Financial Award "ESG Investment Category" is divided into two subcategories: the ESG Investment Subcategory and the SDGs Subcategory.
In the ESG Investment Subcategory, we are looking for financial businesses that are practicing the spread of ESG investment based on the themes of the ESG Investment Subcategory.
In the SDGs subcategory, we are looking for businesses that are implementing SDG initiatives to enhance corporate value based on the themes of the SDGs subcategory.
The solutions received will be reviewed from the perspective of the degree of congruence with the theme, uniqueness of the initiatives, and results.
An award ceremony will be held in early February 2022 to recognize three particularly outstanding applicants in the ESG investment category as a whole. Of these, the Governor's Special Prize for Green Finance will be awarded to one business that is particularly outstanding in its green finance initiatives.
We look forward to receiving applications from as many businesses as possible.