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Global Sustainable Investement Alliance

of a company’s shareholders. However, this issue did not lead to a discussion about the appropriateness of government investment in nuclear power from a sustainable investment perspective. The community investment market in Japan is still in its infancy and its size is quite small. The total outstanding loans by non-profit banks — so called NPO banks even though legally they are not depository financial institutions under Japan’s Banking Act — that operate targeting socially active companies falls short of US$ 3.89 million. However, the flow of capital in this area is growing more diverse. Also, a number of new initiatives have begun to appear in this field, including citizen-operated funds and funds that finance microfinance institutions and post- earthquake reconstruction. There has been a full-fledged movement toward evaluating real estate in Japan based on environmental factors, as evidenced by the certification systems for green buildings and the environmentally friendly building evaluation systems developed by individual financial institutions. While these domestic movements are being advanced following international movements, there is still a great deal of potential concealed within the trend of consideration for the realisation of a low-carbon society. A notable development in the CSR initiatives of Japan’s financial institutions is the establishment of the Principles for Financial Action towards a Sustainable Society in November 2011. This development is significant because, in contrast to previous government-led initiatives in Japan’s financial industry, the Principles are industry-driven. Impact investing heavily influences Japan’s sustainable assets


Global Sustainable Investement Alliance
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