Thursday, October 4th 2018
Investing with a pursuit of environmental, social, and governance goals in mind is gaining recognition globally. According to a the latest UBS Investor Watch, results of a survey across 10 countries of 5300 investors with over US$1 million of investable assets, 65% of wealth investors believe it is important to create a better planet. With this said, only 39% said they have sustainable investments in their portfolio. The adoption of sustainable investments is expected to grow from 39% to 48% over the next 5 years. Furthermore, investors are expected to increase allocation of sustainable investments in their portfolios.
We can see the rising of strong commitments to ESG efforts in Japan. Government Pension Investment Fund (GPIF) has chosen two carbon efficient indexes compiled by S&P Dow Jones Indices as benchmarks for its environmental, social and governance (ESG) investment strategy. In a statement issued on September 25th on the GPIF website, they were chosen to “promote ESG investment for the purpose of improving the long-term return of the whole asset by reducing the negative externality to the environment and society” and “will provide an opportunity for companies to work on carbon efficiency and disclosure.”
GPIF says it invests 1.2 trillion yen (US$10.6 billion) domestically and abroad in passive funds tracking the indexes and continues to “actively engage” in ESG investment in order to maintain pension reserves for future generations. Is it exciting to see larger pensions and institutional investors showing increased awareness of the environmental impacts of their investments. It also increases incentive for Japanese asset managers to keep ESG concepts in mind and think about climate change related risks as well as improve risk-adjusted return.
GPIF`s ESG approach for real estate and alternative investments are not disclosed yet, but their leading role in ESG real estate investment for Japanese investors will also be significant.
As the incentive for other Japanese investors and real estate players to acknowledge ESG goals increases, demand for further information on this type of investment is sought out. UBS Investor Watch noted that confusion is still prevalent, with 72% of investors “find the language of sustainable investing perplexing and less than half are very familiar with the term itself”. To help match these demands, Asterisk will hold an event of ESG Real Estate Investment Symposium in Tokyo on October 24th 2018. This event is for Japanese pension funds, insurance companies, financial institutions, real estate asset management companies, and developers. Asterisk has invited the following key speakers:
-Anna Murray from Bentall Kennedy, Co-Chair of the United Nations Environment Program / Finance Initiative (UNEP FI) Property Working Group will discuss the efforts being made by global leaders for ESG real estate management.
-EY Japan’s Senior Manager for Climate Change and Sustainability Services, Heather McLeish, will discuss the impact of ESG and CSR, proposing solutions necessary for sustainability and competitiveness.
-Ryuichi Horie, Co-founder and CEO of CSR Design Green Investment Advisory (Japan), an adviser for UNEP FI Property Working Group, will explain their global ESG frameworks for Japanese investors.
Japan ESG Real Estate Investment Symposium on October 24th
For further details about this newsletter, seminar and our services, please contact: firstname.lastname@example.org
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About Asterisk Realty & Placement Agency
Asterisk is a private fund placement agency for global alternative in Japan. Through our unique and extensive network of Japanese investors, we support global fund managers in accessing Japanese and Asian institutional investors (pensions, financial institutions, real estate developers, other business companies, etc.). We provide access and strategies for overseas fund managers to bridge the gap between them and Japanese investors.
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