By Onozawa Kenichi
The Financial Services Agency (FSA) will reinforce measures to support decarbonization efforts from a financial perspective. “Greenwashing,” or raising funds by falsely conveying the image that a company is environmentally friendly, is becoming a global issue, and the FSA will cooperate with the Tokyo Stock Exchange (TSE) to develop a system where investors can confidently invest in green bonds. The FSA will also develop a transition bond market to support companies in financing their environmental measures. These measures will encourage both those that provide funding and those that receive financing in their decarbonization initiatives.
The FSA and TSE are discussing a system in which a third-party organization issues a “certification” based on an assessment of a company’s issuance of environmental bonds and use of the procured funds. The organization will assess whether the bonds were issued appropriately and whether the business is environmentally friendly, and it will issue certifications to companies that fulfill the requirements. The green bonds approved by the third party will be available for viewing on the Internet, so that investors can compare them easily. (Abridged)