Study of ESG Disclosure

ESG investment, which incorporates environmental, social and governance factors in investment decisions, has been rising rapidly in the world and in Japan as well. Non-financial reporting for ESG investors tends to focus on performance concerning carbon emissions, but initiatives to conserve biodiversity, such as preventing deforestation and managing marine resources, are also major drivers of corporate value. JBIB member companies have been actively involved in addressing such environmental challenges, but more proper information disclosure and detailed communications are necessary to ensure that investors and stakeholders understand and acknowledge those efforts. In addition, sorting out and more deeply understanding the ESG risks that are of concern to institutional investors can provide hints to member companies in advancing the mainstreaming of biodiversity in business and could also contribute to industrywide adoption of such considerations.

Under the belief that such activities will be more effective when jointly implemented by a group of companies, in 2018 JBIB launched the Working Group for Study of ESG Disclosure.
Focusing on the biodiversity aspect of ESG disclosure, this group aims to clarify what actions companies should take,
and how this information should be disclosed, in order to build better engagement between investors and companies.

Activities

The ESG Disclosure Working Group conducts the following activities:

  1. Study of the evaluation criteria and tools (e.g., deforestation) of leading rating agencies.
  2. Study of the best practices in non-financial information disclosure taken by leading companies within and outside Japan.
  3. Collection of information on stockholder proposals concerning biodiversity.
  4. Analysis of the risks of harm to corporate value from human rights and environment (including biodiversity) scandals.
  5. Sorting out cases of divestment related to issues such as illegal, unreported and unregulated (IUU) fishing, water source development, and cosystem destruction

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