On February 12, 2019, Japan’s Financial Services Agency (JFSA) and Japan Exchange Group, Inc. (JPX) co-hosted a symposium at Tokyo Stock Exchange, entitled “TCFD- The Power of the TCFD Framework in Company-Investor Dialogue”.
The Task Force on Climate-related Financial Disclosures (TCFD) was established in 2016 by the Financial Stability Board. In June 2017, TCFD released its final recommendations, aiming to support companies that disclose financial impacts of the risks and opportunities presented by climate change. The TCFD’s recommendations have gained rapid acceptance in the business and investment world and climate-related disclosure is becoming mainstream in financial filings. Correspondingly, there has been a steady rise in the number of corporations and financial institutions in Japan expressing their support for the TCFD.
On the back of these developments, JFSA and JPX have decided to work together, in cooperation with various stakeholders, to support Japanese companies and financial institutions that have expressed their support for the TCFD. As part of such efforts, JFSA and JPX co-hosted the symposium to deepen discussions on the significance of the TCFD for companies and investors to advance dialogue in enhancing mid-to-long term corporate value, as well as on the TCFD implementation in Japan.
The symposium attracted over 400 attendees from listed companies and financial institutions in Japan. The program included keynote addresses by Ms. Mary Schapiro, Special Advisor to the Chairman, TCFD, and Mr. Norihiro Takahashi, President of Government Pension Investment Fund (GPIF); presentations by Japan’s Ministry of Economy, Trade and Industry (METI) and Ministry of Environment (MOE) on their respective initiatives; and a panel discussion on the TCFD implementation in Japan. The symposium proved to be a great opportunity for those in the industry to deepen understanding and discussion on the TCFD.
Keynote Address by Ms. Mary Schapiro, Special Advisor to the Chairman, TCFD (Summary)
Climate change is likely to have an impact across many economic sectors and has the potential to weaken economic growth, including through damage to capital stock. The public sector has and continues to make important contributions. Now, business and financial communities can also significantly contribute, and one of the ways is to make climate-related risk disclosures in the same way as those for traditional, financial risks such that investors are well-informed and can route their investments to enterprises that are most resilient against such risks.
Achieving the goals of the Paris Agreement requires innovation and technological development, which requires significant investment. However, there is a clear gap between the current level of investment and that needed to move forward. This gap needs to be filled. The potential economic impact of climate change will bring about both risks and opportunities. Long-term, continuous ESG investment will produce better returns.
In order for investors to make investment decisions based on accurate information, companies are requested to provide adequate disclosures on related risks and their risk management.
As the solution by the market and for the market, in 2017, the TCFD made the recommendations on risk management and assessment for companies and investors. A joint public-private sector study group will be established next year. Japanese companies and organization have made significant contributions, as nearly 10% of the TCFD supporters are Japanese. The TCFD calls on companies to increase awareness and understanding of climate-related risks and opportunities within their organizations.
Harnessing market forces is essential for faster and more effective progress against the risks of climate change. Now is the time for companies and investors to act-please join us.
|Program (Click titles below to view videos)||Speakers|
|Opening Remarks||Akira Kiyota, President & CEO, JPX|
|Keynote Address 1||Mary L. Schapiro, Special Advisor to the Chairman, TCFD|
|Presentations by METI surrounding the TCFD||Akinori Kamei, Director, Environmental Economy Office, Industrial Science and Technology Policy and Environment Bureau, METI|
|Presentation by Ministry of the Environment Surrounding the TCFD||Masaaki Kishi, Deputy Director, Climate Change Policy Division, Global Environmental Bureau, MOE|
|Keynote Address 2||Norihiro Takahashi, President, GPIF|
TCFD implementation in Japan from global perspectives
|Moderator: Satoshi Ikeda, Director, International Affairs Office, JFSA|
Speakers: Curtis Ravenel, TCFD Secretariat
Masaaki Nagamura, Special General Manager, Corporate Planning Department, Tokio Marine Holdings, Inc.
Takehiro Fujimura, General Manager, Corporate Sustainability Department, Mitsubishi Corporation
George Iguchi, Chief Corporate Governance Officer, Senior General Manager of Equity Investment Department, Nissay Asset Management Corporation
|Closing Remarks||Toshihide Endo, Commissioner, FSA|