Kyushu University Tropical Agriculture Research Center
Natural Resource Management Laboratory (hyakumura laboratory)

Seminar Report (May 2019, 12)

Seminar Report (May 2019, 12)

What will happen to the world's forests with ESG investment? Will deforestation stop if the flow of money changes?

ESG investment is finally about to get fully underway in Japan. It began in 2015 when the Government Pension Investment Fund (GPIF) signed the United Nations Principles for Responsible Investment (PRI), and has developed into a public-private movement involving domestic institutional investors and fund management institutions. This ESG investment has begun to seriously tackle climate change measures and human rights issues, including measures to prevent deforestation, which has a major impact on climate change. Furthermore, the global financial capital market is moving beyond ESG investment toward sustainable finance, where measures to prevent deforestation are also being discussed.
At this seminar, experts participated in a discussion on topics such as trends in global financial capital markets and the financial world in Japan, as well as what kind of responses will be required in the future for companies that procure forest resources and resources derived from forest regions.

【Webinar Summary】
Date:2019th (Thu) October 12 5:13-30:17
venue:Waseda University Ono Memorial Hall
(1-6-1 Nishi-Waseda, Shinjuku-ku, Tokyo, Building 27, 2nd basement floor)

【Program】
<Part 1> Supply chain reform in finance

 

<Part 2> Panel discussion

How will timber procurement companies respond to financial trends?
Moderator: Associate Professor Teihiko Hyakumura, Tropical Agriculture Research Center, Kyushu University
(Speakers)
・Takasaki City University of Economics, Faculty of Economics, Professor Tsuyoshi Mizuguchi
Minoru Matsubara, Group Leader, Responsible Investment Group, Asset Management Department, Resona Bank
・Ms. Emi Matsukawa, Representative Director of Collective Action General Incorporated Association
・Sumitomo Forestry Co., Ltd. Sustainability Promotion Office Manager, Yuko Iizuka
・Masaaki Sasaki, Director of the Environmental Promotion Department, Sekisui House Ltd.

[Sponsored]
Waseda University Institute for Environmental Studies W-BRIDGE Project, Kyushu University Tropical Agriculture Research Center, International environmental NGO Friends of the Earth Japan

[Seminar Outline]

The event was attended by 106 people from a wide range of fields, including timber procurement companies, finance-related companies, consulting firms, researchers and research institutes, environmental NGOs and NPOs, and students.

The first lecture was given by Tsuyoshi Mizuguchi, professor at the Faculty of Economics of Takasaki City University of Economics, who gave a talk entitled "Overview of Trends in the Financial Industry, Including ESG Investment." He gave a broad overview of the overall background and trends in the financial industry, from the United Nations Principles for Responsible Investment (PRI), which sparked ESG investment, to the European Commission's Taxonomy and sustainable finance, which have been attracting attention in recent years.
Next, Mr. Minoru Matsubara, Group Leader of the Responsible Investment Group, Asset Management Department, Resona Bank, gave a talk titled "Supply Chain Reform through Engagement by Financial Institutions." He introduced the current state and potential of ESG investment from the perspective of institutional investors and other entities that receive large amounts of capital and manage the funds over the long term, and his company's efforts to promote environmental consideration in the palm oil supply chain through engagement with companies as a long-term investor, using concrete examples.
Furthermore, Ms. Emi Matsukawa, Representative Director of Collective Action, a general incorporated association, spoke on the topic of "What do ESG investment rating agencies look at in companies?" Ms. Matsukawa talked about the evaluations of rating agencies that institutional investors and long-term investors refer to, the current state of so-called ESG surveys, and the specific types of evaluations that are carried out, using the Carbon Disclosure Project's (CDP) CDP Forest as an example.

The second panel discussion was moderated by Hyakumura Mikihiko, Associate Professor at Kyushu University's Tropical Agriculture Research Center. Yuko Iizuka, Director of the Sustainability Promotion Office at Sumitomo Forestry Co., Ltd., and Masaaki Sasaki, Director of the Environmental Promotion Department at Sekisui House Co., Ltd., also took to the stage and discussed the issue from the perspectives of the financial world, rating agencies, and companies that procure timber, a forest product. The following three themes were set as the discussion progressed, and an attempt was made to deepen the discussion.

Theme 1: How do procurement companies, rating agencies, and institutional investors commit to combating deforestation?
Theme 2: What can procurement companies, rating agencies and institutional investors do to further combat deforestation?
Theme 3: "Sustainable raw materials procurement," especially issues and future prospects for realizing wood procurement

The speakers proactively offered their honest opinions and comments, which helped to advance the discussion.

This seminar was held as part of the Waseda University Environmental Research Center's W-BRIDGE project, "Promoting supply chain management that contributes to zero deforestation and sustainable raw material procurement."

Related Links

Past (June 2020, 6) webinar "Supply chain management for sustainable timber procurement: Delivering risk-free timber products to end usersThe report ofCLICK HERE .

Past seminar (held on December 2019, 5)New trends in timber supply chains in the SDGs era: What is timber due diligence for the sustainable product market?The report ofCLICK HERE .

Past seminar (held on December 2018, 4)What is responsible timber procurement and product manufacturing in the ESG era? - Considering timber due diligence to achieve the SDGsThe report ofCLICK HERE .

Past seminar (held on December 2017, 4)Global Illegal Logging Issues and Wood Consumption in Japan: Toward Effective Implementation of the Clean Wood Act" This is a report. For details,CLICK HERE .

The announcement was madeTimber Due Diligence Guidance" and "Timber Due Diligence HandbookIsCLICK HERE .

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