GFANZ names Japan as first national sector
Japan is to be the first country-dedicated area of the Glasgow Financial Alliance for Net Zero (GFANZ), an investor coalition created during the COP26 climate conference in 2021.
The group confirmed its new Japan ‘Chapter’ will open in June 2023 and will be part of the broader GFANZ Asia-Pacific (APAC) Network, launched in June 2022.
The Japan Chapter will look to support local financial institutions as they work to decarbonise across all sectors of the economy, as well as accelerating the change needed for Japan to meet its domestic net-zero goal.
The launch coincides with Japan’s G7 presidency, and the G7 Finance Ministers and Central Bank Governors Summit in the city of Niigata beginning tomorrow.
Headquartered in Tokyo, the Japan Chapter will be expected to support local financial institutions in sharing knowledge and best practices on developing net-zero transition plans.
It will also support financial institutions in their work with relevant public and private stakeholders on other policies and initiatives necessary to deliver a just transition.
The Japan Chapter’s oversight group will be chaired in its first year by Dai-Ichi Life Insurance Company, and its own chair of the board Seiji Inagaki.
It will also be advised by Masamichi Kono, former deputy secretary general of the OECD and a senior advisor at MUFG Bank.
Japan accounts for 30% of all TCFD supporters globally, and In 2021, the nation set a more ambitious nationally determined contribution, updating its target emissions reduction to 46% by 2030 from 2013 levels, an increase from the previous target of 26%.
Mary Schapiro, vice chair of GFANZ, said: “When Japanese companies, financial institutions, and policymakers embraced climate-related financial disclosures, and specifically the TCFD recommendations, it had a transformational effect on ensuring climate risk was treated as financial risk.
“I am delighted that Japan is once again leading by hosting the first GFANZ Country Chapter as a forum for Japan’s net zero-committed financial institutions to learn from one another, and engage with stakeholders, as they work to turn their net-zero commitments into action – domestically, regionally, and across the globe.”
Last month, GFANZ incorporated the sector specific Venture Climate Alliance.