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by
Seneca ESG
- December 28, 2021
The Bank of Japan (BOJ) [8301:JP] has provided USD18bn in loans to financial institutions in the first auction for its new climate scheme to combat climate change, as reported by Reuters on December 23. BOJ will distribute zero-interest loans amounting to USD17.94bn on December 24, maturing in 2023. Banks that boost green and sustainable loans can benefit from the loans and renew them until 2030. Previously, on November 26, the state-run bank announced that 43 financial institutions qualified for the climate scheme, including the three megabanks in Japan, namely Mitsubishi UFJ Financial Group [8306:JP], Sumitomo Mitsui Financial Group [8316:JP], and Mizuho Financial Group [8411:JP].
BOJ requires the qualified banks to reveal goals and actual results on green investment and loans, in addition to the measures taken to meet the disclosures rules stipulated by the Task Force on Climate-Related Financial Disclosures (TCFD). The green loans could provide financial support to drive Japan’s industrial sectors towards net-zero emissions. Previously, in October, Japan’s Financial Services Agency (FSA) also requires large enterprises to report their greenhouse gas emissions (GHG) and make climate-related disclosures based on TCFD recommendations. The new guidelines, expected to take effect in April 2022, would cover around 4,000 companies, including those listed on the Tokyo Stock Exchange [TSEGZ:JP]. Other Asian bourses, such as Hong Kong Exchanges and Clearing (HKEX) [0388:HK] and Singapore Exchange (SGX) [SGX:SP], also published similar climate disclosure rules this year.
Sources:
https://www.hkex.com.hk/News/Regulatory-Announcements/2021/211105news?sc_lang=en
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