On July 6, 2023, Mizuho Financial Group issued a green bond valued at US$1.4 billion, marking the largest ESG bond issued by Japanese financial institutions. 76 Their new medium-term business plan, effective from FY2023, outlines Mizuho’s long-term vision for a sustainable society and economy. They employed back-casting to define their ten- year goals and the strategies necessary to achieve their long-term vision, positioning the response to climate change as a primary focus within their core business theme of Sustainability and Innovation. Climate change and biodiversity protection have emerged as priorities among the banks and investors interviewed. Green, Blue, and Sustainability Bonds serve as key mechanisms for these institutions to demonstrate their commitment to sustainable investments. 77 Individual Wealth and Philanthropy The rise of new wealth and family offices presents significant opportunities for the growth of Japan’s philanthropic sector and impact ecosystem. The number of households classified as high-net-worth or ultra-high-net-worth (UHNWI) increased to 1.5 million in 2021, an 83 percent increase from 810,000 in 2011. 78 Japan ranks fourth globally with 14,940 UHNWIs holding assets of US$1.4 trillion. 79 While many affluent individuals are still older, Japan’s younger generation shows increasing interest in entrepreneurship. Philanthropic advisory services are emerging in Japan. Yuko Koshiba and Yoshiko Fujita founded Philanthropy Advisors, modeled after Rockefeller Philanthropic Advisors. Both Koshiba and Fujita noted that their clients currently prefer to support personal passions, particularly in education, rather than engaging in impact investing. 80 Despite the prevalence of older Japanese billionaires, the next generation of UHNWIs is on the rise. For example, 33-year-old Shunsaku Sagami was named Japan’s youngest billionaire by Forbes, with a net worth of US$1.9 billion from his AI-powered startup, M&A Research Institute. 81 Educating wealthy individuals lays the groundwork for increasing their involvement in impact investing and the broader impact economy. Specifically, instruction on deploying strategic capital in impact investing and blended sustainable finance, in addition to policy reforms, incentivizes and sustains these relationships.
23
Ten Years in the Making
Powered by FlippingBook