SIIF-A0 as Partners Kato sees A0 as a partner, not as an investee. He explains, “We are doing something unique, and we need to work together closely. SIIF doesn’t know Nishiawakura community needs; only A0 has that deep relationship.” 8 To support A0’s vision and mea- sure the impact of its affiliated businesses, SIIF has assigned three team members to work directly with A0. The team meets with A0 leadership twice a month and reviews financials with the finance and leadership teams monthly. Wicked Problem: Big Picture What are A0 and other nature-positive business up against and what are the opportunities? According to PwC and KPMG, an estimated 55 percent—more than half—of the global GDP depends on nature. 9 Nature’s contribution to the world’s economy is estimated at US$125 trillion per year. 10 Likewise, Japan’s economy depends heavily on nature, such as its forests, agriculture, and fisheries. Conservation International cites Japan as one of the world’s thirty-six biodiversity hotspots—areas that once had unique ecosystems but now have many species that are threatened with extinction. 11 As an island nation, Japan is home to many endemic species that have evolved and adapted to survive in Japan. 12 Unfortunately, with 70 percent of the native ecosystem modified, this has led to a significant loss of biodiversity and disruption to ecosystems, affecting both wildlife and human livelihoods. 13 The Japanese government and the private sector are taking steps to address this situation. Biodiversity and nature-based businesses are increasingly contributing to the economy through forest management carbon credit schemes (J-Credits). 14 Government initiatives are actively supporting companies integrating natural capital into their operations, with hopes this will lead to new economic opportunities in sectors like ecotourism, sustainable agriculture, and carbon offset markets. 15 Key areas of nature-based economy in Japan in 2024 include the following: n Forestry Focus Japan is leveraging its large forest areas for carbon sequestration through the J-Credit scheme, an initiative that certifies carbon emission reductions are achieved through responsible forest management. n Advanced Forest Mapping
Recent advancements in technology, including high-resolution satellite imagery, are enabling more precise mapping of forest carbon stocks, thereby enhancing the effectiveness of carbon credit initiatives. 139
Ten Years in the Making
Powered by FlippingBook