December 14, 2023

Why Japan? Why sustainable investments? Why now?

Japan’s further push to boost green transformation and environmental, social, and governance (ESG)

There is a large focus on sustainable investments in Japan, it is apparent through the prime minister’s speaking engagements, research conducted and the performance of sustainability focused indices. Discover the latest Japanese 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:

  • A key takeaway from PM Kishida’s speech at PRI in Person 2023: Japanese public pension funds managing JPY 90 Tn in Assets Under Management (AUM) will join a global initiative for responsible investment
  • Potential enhancement to factor model: Tested model with ESG factor better explains the strong performance of the FTSE Blossom Index Series than the traditional factor model
  • FTSE/SGX Blossom Futures Open Interest reaches another high as we look ahead into 2024, mirroring the global growth in sustainable derivatives