NEEDS/OPINION

Thank you for submitting many opinions on “needs and opinions concerning ESG investments”.

The followings are the daily needs and opinions on ESG investments received from residents in Tokyo.
【Survey Period】
May 10, 2019 (Fri) 14:00 to June 10, 2019 (Mon) 23:59

1.Summary of the Survey Results on Concerns of Social Issues Related to ESG Investments

In the survey, we asked residents in Tokyo to share social issues they face in their daily lives related to ESG investments in Environment, Social and Governance fields, which they are interested in or they want resolution of. Below are the top three answers.

1st: Climate Change (Global warming, CO2 emissions, Energy efficiency, Environmental pollution)

2nd: Environmental Market Opportunities (Clean technology, Renewable energy)

3rd: Human Capital (Labor management, Promotion of women’s participation, Diversity, Development of human resources)

We are inviting financial companies that are actively promoting ESG investments taking into account specific reasons for selection and opinions we received from residents in Tokyo as well as the survey results.

【Content of Survey】
Please select social issues in Environment, Social and Governance fields which you are interested in or want resolution of from the ESG investment examples, and rank your choices from the 1st to the 3rd.

【Survey Aggregation Method】
After giving points to the top three answers (3 points to the 1st place, 2 points to the 2nd place and 1 point to the 3rd place answers), we aggregated the points of each selected social issue and calculated the proportion in the total points.

【Overview of the Survey Results】
The survey conducted this year also finds that more than half of the social issues, which residents in Tokyo are interested in or want resolution of, are related to “environment”.

 

Specific Reasons for Selection and Opinions

Below are the main reasons for selecting “Climate Change”, “Environmental Market Opportunities” and “Human Capital”, that are the top 3 social issues which residents in Tokyo are interested in or want solutions of along with their opinions on ESG in general.

【Climate Change】

Reasons for selecting Climate Change

  • Climate change is an important issue that is directly related to the lives of animals and plants as well as human beings. (Civil servant aged between 30s and 40s)
  • Japan has insufficient sense of crisis and action plans concerning climate change. (Company employee aged between 50s and 60s)
  • Climate change is closely and directly related to the lives of myself and my family members. (Company employee aged between 30s and 40s)

Etc.

【Environmental Market Opportunities】

Reasons for selecting Environmental Market Opportunities

  • I emphasized environmental conservation as I feel extremely uneasy about global environment in 50 years.(Student aged between 10s and 20s)
  • I prioritize investments in companies focusing on environmental improvement and conservation in consideration of deteriorating environmental destruction, including waste plastic issues and global warming. (Company employee aged between 30s and 40s)
  • I consider that maintenance and conservation of global environments are essential for social/economic activities (Civil servant aged between 30s and 40s)

Etc.

【Human Capital】

Reasons for selecting Human Capital

  • I consider that corporate awareness of human capital is lower than that of climate change. (Company employee aged between 50s and 60s)
  • Women’s active participation is often referred to, but I consider that the efforts to promote their active participation differ greatly depending on the industry.(Company employee aged between 10s and 20s)
  • Human capital (use of women and foreigners, respect for diversity, etc.) is an essential theme for maintaining competitiveness of Tokyo and Japan (Company employee aged between 30s and 40s)

Etc.

【ESG in General】

Opinions on ESG in general

  • It would be helpful to have services that facilitate ESG investments even by inexperienced investors. (Civil servant aged between 30s and 40s)
  • It would be desirable to disclose the methods to verify effects generated after the execution of ESG investments (Civil servant aged between 30s and 40s)
  • It is also necessary to consider social efforts to help sustainability-oriented companies make profits. (Company employee aged between 10s and 20s)

Etc.

2.Summary of Questionnaire Assuming Respondents as Investors

The question “Assuming that you are an investor, which area (environment, society or governance) do you want to invest in?” found that environment was the top concern followed by social and governance in the same order as social issues.

 

Specific Reasons for Selection and Opinions

Below are the reasons for selecting Environment, Social and Governance as well as the opinions concerning the question “Assuming that you are an investor, which area (environment, society or governance) do you want to invest in?”

【Environment】

Reasons for selecting Environment

  • Thinking about and investing in environment allow me to realize that I can do something for the environment just around me and also for the global environment while staying “right here”. This will lead to my motivation for investments. (Company employee aged between 30s and 40s)
  • Return on investment seems to be the best. (Company employee aged between 30s and 40s)
  • When it comes to general business activities of companies, focusing on environment seems to be often contradictory to production/sales activities and the maximization of profits. The companies focusing on such fields fascinate me. (Company employee aged between 30s and 40s)

Etc.

【Social】

Reasons for selecting Social

  • I consider that interaction with society as well as social values provided by companies are the most important elements for future corporate competitiveness and growth potential (Manager/entrepreneur aged between 30s and 40s)
  • Because I am involved in society through my work (Company employee aged between 30s and 40s)
  • I hope that a society where women can play an active role will be created. I would like to invest in companies that emphasize the creation of an environment that enables employees to work and raise children without stress at the same time. (Housewife aged between 50s and 60s)
  • I believe that companies focusing on society will grow in the long run (Company employee aged between 30s and 40s)

Etc.

【Governance】

Reasons for selecting Governance

  • The establishment of governance serves as a foundation in conducting environment- and social-oriented corporate activities. (Company employee aged between 50s and 60s)
  • The biggest concern is stock price plunges caused by scandals of the companies with insufficient governance (Company employee aged between 10s and 20s)
  • A lack of governance among the three areas is the most frequently cited reason for bankruptcies of the investment destinations, and is considered to be the most important factor for attracting investors. (From now on, environmental and social initiatives <SDGs promotion system, etc.> will become increasingly important though.) (Civil servant aged between 30s and 40s)

Etc.

Please click here for entry by financial companies promoting ESG investments!