The government will soon release new guidelines it has compiled to attract ESG (environmental, social and governance) investments from overseas.
In ESG investments, investors choose companies based on factors such as the company tackling or having a good record on environmental and social issues, such as efforts to cut carbon dioxide emissions, and corporate governance.
The guidelines, which cover five industries such as automobiles, steel and chemicals, specify what types of information are desirable for each industry to disclose. Steel companies, for example, should reveal the carbon dioxide emissions per production amount, according to the guidelines, which are expected to be released within this month.
Japan is apparently the first country among the Group of Seven advanced nations to compile such guidelines. The government hopes that Japanese companies will disclose the desired information about their efforts against global warming and other ESG activities through clear-cut standards as a means to expand ESG investments from overseas and boost economic growth.