Japanese companies face climate transition risks, in addition to the physical risks of climate change. Investors are moving to incorporate rising climate risks within the Japanese market into their investment strategies and increasing allocations towards investment opportunities in green businesses.
More than 130 countries and close to 700 companies globally have announced their commitment to achieving carbon neutrality or have adopted a target of ‘net zero’ emissions by 2050. These commitments include interim emissions reduction targets aligning with the goals of the Paris Agreement which aims to limit global warming to well below 2°C and preferably to 1.5°C compared with pre-industrial levels. In Japan, former Prime Minister Yoshihide Suga announced in 2020 that Japan will reduce its greenhouse gas (GHG) emissions by 46% by 2030 from 2013 levels and will achieve a ‘net zero’ emissions reductions by 2050.
You can now read the full whitepaper at the link below
