The Japan Chapter is the first GFANZ Country Chapter and follows last year’s launch of the GFANZ Asia-Pacific Network
TOKYO – May 10, 2023 – Ahead of the G7 Finance Ministers and Central Bank Governors Summit in Niigata, the Glasgow Financial Alliance for Net Zero (GFANZ), the world’s largest coalition of financial institutions committed to the goal of net zero by 2050 in line with science-based 1.5-degree pathways, has announced Japan will become the first nation to host a GFANZ Country Chapter. The Chapter will open in June 2023 and will be part of the broader GFANZ Asia-Pacific (APAC) Network launched in June 2022.
As an extension of GFANZ’s APAC Network, the Japan Chapter will support local financial institutions as they work to decarbonize across all sectors of the economy and seize transition-related opportunities, which will help catalyze and accelerate change needed for Japan to meet its domestic net-zero goal. The Japan Chapter launch coincides with Japan’s G7 presidency, demonstrating Japanese financial institutions’ collective voluntary leadership on climate finance. The Japanese authorities, including the Financial Services Agency, the Ministry of Finance, the Bank of Japan, the Ministry of Economy, Trade and Industry, and the Ministry of the Environment have welcomed the Chapter. With more than 20 leading Japanese financial institutions across the sector-specific alliances that comprise GFANZ, Japan has the most members of any country in APAC.
Headquartered in Tokyo, the Japan Chapter will 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 Consultative Group – which will comprise leading Japanese financial institutions, government representatives, industry leaders and experts, and will be chaired in its first year by Dai-Ichi Life Insurance Company Chair of the Board Seiji Inagaki – will provide strategic input into the Chapter’s activities and work products. The Japan Chapter will be advised by Masamichi Kono, Former Deputy Secretary General of the OECD and MUFG Bank Senior Advisor, who will also join the GFANZ APAC Advisory Board. The work of the Japan Chapter will be supported by locally based financial institutions.
The GFANZ APAC Network was launched in 2022 and works to accelerate the net-zero transition across the region. Within APAC, GFANZ is supporting the Just Energy Transition Partnerships in Indonesia and Viet Nam, and leading a regional workstream to provide financial institutions with guidance on facilitating the managed phaseout of coal-fired power plants in APAC.
Japan has a strong track record of climate finance leadership. The country demonstrated an early commitment to climate-related disclosures through implementation of the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations, with Japan accounting for 30% of all TCFD supporters globally. In 2021, Japan set a more ambitious nationally determined contribution, updating its target emissions reduction to 46% by 2030 from 2013 levels, a substantial increase from the previous target of 26%. The financial sector will have an important role to play in delivering on this ambition and the Japan Chapter will work to support the decarbonization needed across all sectors of the economy with a focus on high-emitting sectors.
Mary Schapiro, Vice Chair, GFANZ: “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.”
Seiji Inagaki, Dai-Ichi Life Insurance Company Chair of the Board and GFANZ Japan Chapter Consultative Group Chair: “Japan has some of the world’s leading financial institutions and financing the decarbonization of the APAC region is crucial to the global success of combatting climate change. The Chapter will be integral in furthering Japan’s leadership in climate finance action – and I am honored to serve as the inaugural Chair of the Consultative Group.”
Masamichi Kono, Former Deputy Secretary General of the OECD, MUFG Senior Advisor, and GFANZ Japan Chapter Advisor: “Transitioning the global economy to net-zero emissions requires shared vision and collaboration. I am excited to support the convening of GFANZ Japan members across all sectors of the financial system through the GFANZ Japan Chapter and to help develop the Chapter as an effective platform for collaboration and innovation on net zero.”
Ravi Menon, Chair of the GFANZ APAC Advisory Board and Managing Director of the Monetary Authority of Singapore: “The GFANZ APAC Network is working closely with financial institutions in the region to raise their climate ambitions. We are also stepping up capacity building programmes in areas such as transition planning. GFANZ APAC looks forward to the contribution by the Japan Chapter to accelerate an inclusive and just transition to net zero.”
Yuki Yasui, Managing Director, GFANZ APAC Network: “Engaging financial institutions across Asia-Pacific is key to furthering our goal to accelerate the global net-zero transition. Today’s launch is an important step in our ongoing efforts to build consensus and ensure GFANZ’s work in the APAC region is inclusive and applicable to all.”
The Glasgow Financial Alliance for Net Zero (GFANZ) is a global coalition of eight financial sector net-zero alliances working together to support the world’s transition to net-zero emissions by 2050. Through the net-zero alliances, GFANZ has united over 575 institutions across the financial sector, including banks, insurers, asset owners, asset managers, venture capitalists, financial service providers, and investment consultants, spanning 50 countries and representing 40% of global private financial assets. To help unlock transition investment in developing economies, GFANZ regional networks work to support capital mobilization, expand membership, and reflect the diverse needs of financial institutions around the world.
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