As indirect finance dominates in Japanese financial structure, it is key for further expansion of ESG finance to promote the ESG consideration into loans although ESG finance is expanding among direct finance.
Regional financial institutions as a core of region is expected to operate ESG regional finance contributing the sustainability of the region.
It is important for regional financial institutions to promote regional finance focusing on E of the region through providing proper knowledge and finance considering ESG factors based on its characteristics of region, and integrating environmental factors into the evaluation of customer’s business potential.
The Ministry of the Environment will support various efforts for these purpose.
Good practices on ESG Regional Finance
Case study includes business that regional financial institutions support and bring environmental and/or social impact and efforts of financial institutions who is actively engaging in ESG and SDGs.
ESG Regional Finance Promotion Program
The Ministry of the Environment support regional financial institutions’s efforts on building green projects and structuring evaluation process of customers business potential and the company’s perspective of the ESG factors.
ESG Regional Finance Interest Subsidy Programme
The interest subsidy will be provided to the financial institutions that set and disclose own numerical targets for ESG loans when providing loans to contribute to its targets and providing loans to companies that financial institutions supports setting ambitious target of CO2 emission reduction and its plans.