Nippon Life Insurance announced on the 7th that it will exclude tobacco-related stocks from its investment targets as part of its efforts to strengthen ESG (environmental, social, and corporate governance) measures.announcementbottom. Expand the scope of “negative screening,” which excludes stocks deemed inappropriate from an ESG perspective. It is the first major life and non-life insurance company in Japan to exclude tobacco-related investments from its investment targets.
In 2018, the company announced a policy of not making investments or loans in two fields: the production of specific weapons such as cluster bombs, and coal-fired power generation. In addition to tobacco, the latest measures include nuclear weapons, palm oil-related stocks, and oil and gas-fired power generation businesses within the scope of investment exemptions. It did not specify which companies would be targeted.
Examples of negative screening are also seen in Japan, but prohibiting investment in tobacco-related companies is rare. Bloomberg did not see any similar efforts at major life and non-life insurers.
Nippon Life has taken a step forward in its presentation materials, stating that it is “taking measures in consideration of the impact on health.” While excluding tobacco, the question also arises as to whether alcohol and fighter jets, for example, are allowed.
In ESG investment, various methods are introduced when selecting stocks. In Japan, “engagement” is relatively common, in which investors continue to hold dialogues while holding the stocks of investees. Negative screening tends to be used especially in Europe.
Global Sustainable Investment Alliance (GSIA)InvestigationAccording to the report, the breakdown by country/region of the investment balance using negative screening is 9.242 trillion dollars (about 1310 trillion yen) in Europe, 61% of the total, and 3.404 trillion dollars in the United States, 23%. Japan was 8% at $1.254 trillion.
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2023-08-07 05:00:06
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