Japan Becomes First G-7 Nation to Factor ESG Into Investments

  • MOF to apply ESG considerations in foreign asset buys
  • Move is likely meant to help Japan meet its 2050 climate goal
Commercial buildings at dusk in the Shibuya district of Tokyo.Photographer: Soichiro Koriyama/Bloomberg
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Japan will introduce environmental, social and governance considerations for foreign reserves held by the finance ministry, reflecting a need to seriously tackle climate change in order to achieve the country’s 2050 carbon neutral goal.

The decision to include ESG as a factor for foreign asset holdings is a first for a Group of Seven nation, Finance Minister Shunichi Suzuki said Friday. The ministry didn’t disclose the amount of funds that will be affected.