While direct finance has been a main driver in the field of ESG finance globally, indirect finance is also common in Japan. Therefore, integrating ESG perspective into lending is the key for further expansion of the ESG finance in Japan. In regional areas where lending is more dominant, regional financial institutions are expected to contribute to tackling sustainability-related issues through regional ESG finance.
To play such an important role, it is crucial to promote regional finance 1) providing proper knowledge on ESG considering characteristic of each region and 2) integrating environmental factors into financing and business potential assessment.
The Ministry of the Environment provides various supports and guides with financial institutions aiming to execute regional ESG finance.
ESG Regional Finance Task Force
ESG Regional Finance Task Force was established under ESG Finance High-Level Panel to deepen discussions and to take actions on ESG regional finance. The purpose of the Task Force is to discuss the role of regional financial institutions in building a sustainable society and to develop a shared vision for the promotion of ESG regional finance.
ESG Regional Finance Promotion Program
A supporting program for regional financial institutions that conduct market research on green projects, explore the issues and resources of the regions, and develop processes for assessing business potential with ESG perspective.
Practical Guide to ESG Regional Finance
A guide that shares the achievements and lessons of the participants of Regional ESG Finance Promotion Program. Their experiences provide readers with insights on how to execute ESG regional finance as their institution-wide business.
Questionnaire Survey regarding Regional ESG Finance
A report based on survey data and interviews with individual financial institutions. It gives financial institutions a reference for making strategies for expanding their ESG finance activities.
Good practices on ESG Regional Finance
A set of examples where regional financial institutions support projects to bring environmental and/or social impact and efforts of financial institutions in ESG finance toward SDGs