August 03, 2023

From savings to sustainable investments

Japan's individual savings accounts (NISA) to include sustainable investments from 2024

Could new individual tax incentive scheme in Japan benefit sustainable investing? 

The new Individual Savings Account in Japan (NISA) is expected to include sustainable investments from 2024. This could herald a new era as previously sustainable investing has been the domain of institutional investors such as GPIF, however the upcoming change to NISA will introduce ESG and sustainable mutual funds/ETFs into the saving schemes of individual investors. 

The latest Japanese ESG indices and passive investment report, written in collaboration with SGX

Each quarter, we review the development of Japan's sustainability standards, the ESG performance of Japanese listed companies compared to the broad-market index, and the growth of index-linked SGX FTSE Blossom Japan Index Futures.

Key highlights from this quarter’s analysis:

  • Investment Trust Association of Japan announces the inclusion of sustainable investment products to the list of NISA eligible products, effective January 2024
  • FTSE Blossom Japan Index Series further extends its outperformance over traditional market cap index
  • SGX FTSE Blossom Japan Index Futures reach new highs on Open Interest and Volumes