May 21, 2019
Joint Press Release with the Ministry of the Environment and the Financial Services Agency
On May 27 (Mon.), 2019, five founders, inducing Mr. Kunio Ito, Professor, Graduate School of Business Administration, Hitotsubashi University, will inaugurate a new body called the “TCFD Consortium” (hereinafter referred to as the “consortium”) as an opportunity for holding discussions on effective corporate information disclosure and efforts for leading disclosed information to appropriate decision making on investment by financial institutes and other entities. The Ministry of Economy, Trade and Industry (METI), the Financial Services Agency (FSA) and the Ministry of the Environment (MOE) will participate in the consortium as observers.
1. Background to the inauguration of the consortium
In response to the Paris Agreement adopted in December 2015, global society and the financial industry in particular, tend to assess the impacts that climate change may have on business activities of investment or loan target companies.
Amid this trend, the Task Force on Climate-related Financial Disclosures (TCFD), an organization established by the Financial Stability Board (FSB), released its final report in June 2017 (hereinafter referred to as the “TCFD recommendations”) as an outcome responding to the instruction of the G20 Finance Ministers and the Central Bank Governors. Japan has been raising momentum for addressing the TCFD recommendations, as seen by METI’s release of the Guidance for Climate-related Financial Disclosure (TCFD Guidance) in December 2018.
2. Outline of the consortium
Against this backdrop, five founders, including Prof. Ito, Hitotsubashi University, called for inauguration of the TCFD Consortium, and on May 27 (Mon.), 2019, a general meeting for the inauguration of the consortium will be held. The consortium will hold discussions on effective corporate information disclosure and efforts for leading disclosed information to appropriate decision making on investment by financial institutions.
METI, participating in the consortium as an observer, considers the inauguration of the consortium significant in achieving a virtuous cycle between the environment and growth, a framework in which companies proactive in addressing environmental issues can collect funds from around the world and further their development.
METI expects that through the consortium, participants will proactively hold discussions on ideal approaches to effective information disclosure, and that it will also proactively strive to convey related information to people inside and outside of Japan so as to encourage these efforts to be assessed in global markets.
Division in Charge
Environmental Economy Office, Industrial Science and Technology Policy and Environment Bureau