The Ministry of the Environment Japan has established the High-Level Panel on ESG Finance as a venue where leaders from the finance and investment sectors convene to further mainstream ESG finance. We are pleased to announce that the 8th session of the Panel was held on Thursday, March 13, 2025.

Scenes from the ESG Finance High-Level Panel held on Thurseday, March 13

１．Overview

　The Ministry of the Environment Japan established the High-Level Panel on ESG Finance based on the recommendations of High-Level Meeting on ESG Finance (July 2018), as a forum for leaders from the finance and investment sectors and government to work together to discuss and take action to promote ESG finance awareness and efforts. The Panel has also been regularly monitoring the progress of initiatives aligned with these recommendations.

　At this 8th session, discussions were held from multiple perspectives on the implementation of the Sixth Basic Environmental Plan and the realization of a nature-positive and circular economy.

２．Session report

　In his opening remarks, Minister of the Environment ASAO Keiichiro expressed his view that, despite changes in domestic and international trends surrounding environmental policies, including changes in the U.S. government policy, the importance of the issues that need to be addressed remains unchanged. He further emphasized the necessity of promoting ESG finance to enhance domestic and international investment and financing related to the environment. Specifically, he highlighted the importance of steady implementation of measures to achieve net zero emissions by 2050.

　In Session 1, the “Declaration on Financial Action for Building a Green Economy System” based on the content of the Sixth Basic Environment Plan was adopted with the unanimous support of all panel members. Furthermore, discussions were held on the implementation of the plan, and panel members exchanged opinions on issues related to the development of a carbon credit market in Japan, the contribution of this declaration in the face of growing uncertainty, and the need for reform toward a sustainable business model.

　In Session 2, initiatives by the financial industry to achieve a nature-positive economy and circular economy were introduced, and discussions were held on measures and issues to promote such initiatives in a wide range of business models. During the discussion on the realization of a nature-positive economy, opinions were expressed on the role of regional financial institutions, the importance of collaborative efforts with climate change initiatives, the need for asset management companies to incorporate ESG factors, the high level of disclosure by Japanese enterprises, and the creation of new actions by Japanese enterprises in collaboration with local governments. During the discussion on the realization of a circular economy, opinions were expressed on the need to develop and disclose data and indicators relevant to circular indices, the importance of enhancing investment education and raising consumer awareness, the promotion of initiatives to encourage a shift from “ownership” to “use” of assets, and expectations for the establishment of rules for the transition to a circular economy.

　In his closing remarks, State Minister of the Environment KOBAYASHI Fumiaki emphasized the significance of effectively communicating the adopted action declaration, underscoring the importance of attracting global growth capital to Japan to address domestic and international challenges through the acceleration of ESG investment and financing.

３．Agenda for the day

■Opening Remarks

   (ASAO Keiichiro, Minister of the Environment)

■Session 1: Implementation of the Sixth Basic Environmental Plan

・Keynote Speech: Overview of the Sixth Basic Environmental Plan

   (Ministry of the Environment)

・Adoption of the Declaration on Financial Action for Building a Green Economy System

・Discussion

■Session 2: Realization of Nature-Positive and Circular Economy　

●Realization of a Nature-Positive Economy

・Report: The Ministry of the Environment's Policies for Achieving a Nature-Positive Economy

   (Ministry of the Environment)

・Report: Initiatives by Norinchukin Bank to Contribute to a Nature-Positive Economy

   (Norinchukin Bank)

・Report: Case Study of Investor Efforts for Achieving a Nature-Positive Economy

   (Asset Management One)

・Discussion

■Realization of a Circular Economy

・Report: Government Efforts and Trends in Corporate Disclosure Schemes Related to a Circular

   Economy

   (Ministry of the Environment)

・Report: Banking Industry Efforts for Realizing a Circular Economy

   (Japanese Bankers Association)

・Report: ESG Finance Initiatives by the Life Insurance Association of Japan and Circular Economy-　　

　Related Efforts by Meiji Yasuda

   (The Life Insurance Association of Japan)

・Discussion

■Closing Remarks

   (KOBAYASHI Fumiaki, State Minister of the Environment)

4．Members of the 8th High-Level Panel on ESG Finance

Observers

 Pension Fund Association

 Financial Services Agency

 Ministry of Economy, Trade and Industry

 Keizai Doyukai (Japan Association of Corporate Executives)

 Ministry of Land, Infrastructure, Transport and Tourism

 Ministry of Finance

 Glasgow Financial Alliance for Net Zero, Japan Chapter

 Principles for Responsible Investment (PRI)

 Japan Green Investment Corp. for Carbon Neutrality (JICN)

 Cabinet Office

 Principles for Financial Action for the 21st Century

 Bank of Japan

 Keidanren (Japan Business Federation)

5．Declaration on Financial Actions for Building a Green Economy System

 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　March 13, 2025

 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　High-Level Panel on ESG Finance

The Sixth Basic Environmental Plan sets forth the realization of a ‘circulation and symbiosis based society,’ a sustainable society where economic and social development can occur by protecting environmental capacity and enhancing environmental quality. Against the backdrop of complex crises and challenges related to the environment, economy, and society, the Plan aims to advance the integrated improvement of these three pillars, with the environment as the foundation and central focus.

To achieve this circulation and symbiosis-based society environmental policies in thematic areas—such as net zero, circular economy, and nature-positive initiatives—must be implemented in an integrated manner to generate synergies and contribute to solving structural economic and social challenges, in order to drive integrated progress in the environment, economy and society, with well-being as the highest objective.

Toward the realization of this society, and aiming to contribute as financial institutions to building a green economy system that realizes sustainable production and consumption, the High-Level Panel on ESG Finance, in the context of promoting sustainable finance, including ESG finance, by encouraging businesses to invest in and support initiatives that reduce their environmental impact, declares as follows:

1．We will expand environmental finance to shift capital flows toward building a sustainable society,

     including investments and financing that support climate action, circular economy, and nature-

     positive initiatives.

2．We will promote the green management of regional businesses by providing financing and support to

     projects that address local challenges while creating economic value.

3．We will further expand investment in environmental startups to drive new innovation, in addition to

     the social implementation of existing technologies.

Through these efforts, we will promote sustainable finance, including ESG finance, to build a green economy system through finance.