The popularity of ESG investing, which incorporates environmental, social and governance factors in investment decisions, is rapidly spreading among global investors. The same trend has also been appearing in Japan, notably after the Government Pension Investment Fund (GPIF) became a signatory to the Principles for Responsible Investment (PRI).

This makes it essential for companies to further examine and establish better approaches for ESG information disclosure to the financial sector and ESG evaluators.

As investment decisions are now not only informed by the impacts business activities have on climate change, but are also beginning to factor-in biodiversity, such as the impacts of business on the ecosystem, it is believed to be extremely relevant for JBIB member companies to engage in collective actions.

Activities

The ESG Disclosure Working Group has conducted the following activities.

1. Studies of the methodologies of international assessment organizations
2. Collection of the best practices of leading domestic and overseas companies concerning information disclosure
3. Studies of negative screening tools

Quantitative evaluation of biodiversity is more difficult than that of global warming and climate change, and requires a diversity of assessments. Going forward, the group hopes to deepen mutual understanding on biodiversity through information sharing and dialogue with investors, financials, ESG evaluators and other relevant parties.

Regular talks are also held with investors and analysts to gain their views on the kind of information they wish companies to disclose regarding their initiatives for the environment and biodiversity.

Through such activities, the group works to enable the member companies, from each of their respective positions, to better disclose information that meets investor expectations.

Participant Companies

SG Holdings Co., Ltd.
ENEOS Corporation
MS&AD Insurance Group Holdings, Inc.
Daito Trust Construction Co., Ltd.