A new mandate from a Japanese insurer reveals how Abenomics is raising the profile of environmental, social and governance (ESG) investment in Japan.
The mandate from Nippon Life Insurance was awarded to Axa Investment Managers for a €125 million ($130 million) corporate bond portfolio focused on companies with high ESG ratings.
“This mandate is testament to Axa Investment Managers' growing profile in Japan where ESG investing is becoming increasingly significant as part of the redevelopment of the Japanese financial industry under Abenomics,” said Francisco Arcilla, chief executive of the company's Japanese business.
Abenomics, which describes the economic policies of Japanese prime minister Shinzo Abe, includes an attempt to improve governance standards by promoting better stewardship standards among investors.
“After setting up our credit investment department in 2014, we have been investing in ESG bonds across the globe, with one such example being our independent investment in the first Paris green bonds,” said Yasutoyo Takada, general manager of the credit investment department at Nippon Life. “Our total ESG bond investments already exceed our immediate target of 100 billion yen ($850 million).”
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