07.09.2018

London And Japan Collaborate On Sustainable Investment

  • LSEG and JPX agree to identify and collaborate on initiatives to promote global sustainable investment
  • LSEG launches Japan Advisory Group comprised of senior Japanese business leaders
  • Both initiatives designed to further promote the close ties between UK and Japan

Japan Exchange Group, Inc (JPX) and London Stock Exchange Group plc (LSEG) are delighted to announce that they have agreed to identify and collaborate on financial market infrastructure initiatives designed to promote global sustainable investment and on product marketing initiatives.

JPX and LSEG have begun identifying areas for mutual collaboration and innovation across the full spectrum of ESG investment finance. Both Groups want to further deepen ties in order to expand the range of services offered to listed companies and investors across capital markets in Japan, the UK, and globally. The initial focus will be on joint marketing activities to promote listing products, especially those related to ESG.

JPX and LSEG, as Partner Exchanges in the United Nations (UN) Sustainable Stock Exchanges (SSE) initiative, are both firmly and demonstrably committed to promoting sustainable investment. The UN SSE Initiative aims to provide an effective peer-to-peer dialogue among global exchanges, encouraging sustainable investment, while also enhancing corporate transparency on environmental, social, and corporate governance issues. The SSE initiative has provided stock exchanges with an opportunity to play an important leadership role in promoting sustainable business practices.

Akira Kiyota, Group CEO, JPX:
“We are very pleased to announce our agreement with LSEG to cooperate in initiatives that span sustainability and on product marketing aimed at developing methods for providing better customer service. With the partnership with LSEG, JPX hopes to contribute to the spread of ESG investment and the establishment of a sustainable society in collaboration with domestic and foreign public institutions, investors, listed companies, market participants, and other stakeholders. JPX looks forward to strengthening our cooperative relationship such that we may continue contributing to further development of capital markets in both countries and globally.”

David Warren, Interim Group CEO and Group CFO, LSEG:
“We are honoured to partner with JPX in the important area of sustainable finance. We both share a commitment to working closely with global market participants to meet the world’s sustainable finance needs. We look forward to expanding the range of services available to listed companies and investors across our markets through this partnership.”

JPX actively promotes ESG investment and established a Sustainability Committee on July 1, 2018 to promote JPX’s activities on a company-wide basis. The “Update of 2nd Medium-Term Management Plan (FY2018)”, which was published on April 27, 2018, includes such initiatives for advancing ESG investment efforts as the launch of a dedicated web platform for publishing ESG-related bonds information along with the expansion of the infrastructure fund market to encompass renewable energy projects.

Last year LSEG’s global benchmark provider, FTSE Russell, was proud to partner with the Government Pension Investment Fund of Japan – the world’s largest pension fund – to provide benchmarks to support their sustainable investment strategy. Green Bond issuance in London also increased by over 90 per cent and equity related activity by 200 per cent in 2017. More information can be found at LSEG’s Global Sustainable Investment Centre.

Source: LSEG

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