Tokyo, 12 November 2021 – The Partnership for Carbon Accounting Financials (PCAF) has launched a Japan coalition to further promote measurement and disclosure of GHG emissions in the Japanese financial sector. This coalition will be chaired by Mizuho Financial Group given their instrumental support in setting up the national chapter. Mizuho Financial Group will fulfill the leadership role to facilitate collaboration, including chairing regional meetings and holding the pen for deliverables with participant inputs.
“I’m really excited to launch PCAF Japan, a coalition of Japanese financial institutions that collaborate to measure and disclosure the GHG emissions associated with their financial activities. Collaboration among financial institutions with other stakeholders like governments and regulators is crucial in order to implement GHG accounting and improve data quality. This will enable these financial institutions to maintain their leadership in mitigating potential climate-related transitional risk and to steer towards the goals of the Paris Agreement.”
Giel Linthorst, Executive Director of PCAF Secretariat and Director at Guidehouse
Japan continues to play a leading role in the financial industry. The key reason for establishing this coalition is to foster a stronger collaboration which will enable Japanese PCAF signatories to improve their data quality and steer their portfolio in line with the Paris Agreement. Forming the coalition will contribute towards creating more robust accounting practices tailored to the regulatory and economical challenges faced by Japanese financial institutions.
The initial six members of the PCAF Japan coalition are Mizuho Financial Group, Inc.; Nissay Asset Management Corporation; Mitsubishi UFJ Financial Group, Inc.; Nomura Asset Management Co., Ltd.; Sumitomo Life Insurance Company; and Sumitomo Mitsui Financial Group, Inc.
“As the first PCAF member institution in Japan, I am very pleased to have contributed to the launch of the PCAF Japan coalition. There are various challenges in measuring financed emissions, and in order to overcome these, we need to further enhance cooperation with a wide range of stakeholders, including those in the financial sector. We will fulfil our leadership role as the PCAF Japan coalition chair and work together with all participating institutions in expanding financed emissions measurement and disclosure by Japanese financial institutions.”
Tatsufumi Sakai, President & Group CEO, Mizuho Financial Group, Inc.
The PCAF Japan coalition will focus on applying PCAF’s methodologies for measuring financed emissions in a Japanese context, sharing best practices, working on data quality improvements, developing additional methods, and bridging international collaboration with other PCAF regional teams.
With this new chapter in the PCAF structure, PCAF continues to expand, both in Asia-Pacific and globally. The initiative now holds over 170 financial institutions with over 54 trillion USD in total assets across North America, Latin America, Europe, Africa, and Asia-Pacific. The initial six members of the PCAF Japan coalition hold over 8.66 trillion USD in total assets.
“As the first Japanese bank to have joined the NZBA, we are pleased to see the net-zero momentum spreading across the nation. We believe that the PCAF Japan coalition will take a leading role within the industry to improve data quality with a standardised approach, and ultimately contribute to steer the portfolio of each financial institution in line with the Paris Agreement.”
Akihiko Hasegawa, Global Head of Sustainability Engagement, Mitsubishi UFJ Financial Group (MUFG)
"We are very pleased to be part of the PCAF Japan coalition. As more and more countries commit to net zero and carbon neutrality as NDCs, the key question is how to achieve net zero. Measurements and disclosures related to net zero are critical for the financial sector to properly allocate funds to areas that contribute to net zero. The PCAF initiative is a valuable driver for both companies and the financial sector. Nissay Asset Management will accelerate action toward the goal of virtually zero greenhouse gas emissions by 2050 by taking action with all members, and will actively work toward the realization of a sustainable society through "A Good Investment for the Future.”"
Hiroshi Ozeki, President and Chief Executive Officer, Nissay Asset Management
“We urgently need to establish robust global standards for measuring and disclosing financed emissions in collaboration with PCAF to ensure the world’s financial institutions will achieve net-zero carbon emissions from their portfolios by 2050. As Japan has been a leader in both global financial markets and the shift toward decarbonization, I firmly believe PCAF Japan will contribute to opening up a new frontier of rigorous methodologies for measuring and disclosing financed emissions.”
Hiroyasu Koike, President and CEO, Nomura Asset Management
“Sumitomo Life is honored to be a part of the PCAF Japan coalition because we will be able to promote methodologies for measurement and disclosure of financed emissions in a Japanese context collaboratively. This collaboration will provide the Japanese participants with a great opportunity to share best practices and knowledge.”
Iwao Matsumoto, Chief Investment Officer, Sumitomo Life Insurance Company
“Towards the realization of a decarbonized society, financial institutions are facing more and more expectations from our stakeholders to accurately measure and disclose financed emissions. Through the activities of PCAF Japan, we hope we can promote peer-to-peer collaboration, exchange of knowledge and methodology development that fits the Japanese industrial background.”
Tatsuya Takeda, General Manager of Corporate Sustainability Department, Sumitomo Mitsui Financial Group
"Given the urgent need to tackle climate change, there is increasing attention for financial institutions to better understand their loans and investments in relation to the goals of the Paris Agreement. It is my hope that initiatives, including PCAF Japan, will play important roles in assisting interested financial institutions to learn about and uphold their customers in addressing their challenges.”
Satoshi Ikeda, Chief Sustainable Finance Officer, Financial Services Agency of Japan
"We are very pleased to see that Japanese financial institutions have built a platform to enhance their carbon-emission measurement approaches. We expect such collaboration will gather insights in the sector and increase momentum towards global carbon neutrality."
Takashi Kondo, Director, Environment and Economy Division, Ministry of the Environment, Government of Japan
**For more information, please contact:
Executive Director, PCAF
Program Manager & Latin America Team Lead, PCAF
About the Partnership for Carbon Accounting Financials
The Partnership for Carbon Accounting Financials (PCAF) was launched globally in September 2019. Currently, more than 170 banks and investors have subscribed to the PCAF initiative. PCAF participants work together to jointly develop the Global GHG Accounting and Reporting Standard for the Financial Industry to measure and disclose the greenhouse gas emissions of their loans and investments. By doing so, PCAF participants take an important step to assess climate-related risks, set targets in line with the Paris Climate Agreement and develop effective strategies to decarbonize our society.
Learn more at: https://carbonaccountingfinancials.com