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Saturday, May 15, 2021
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Japan’s green shares rise on Suga’s pledge

green shares

Prime Minister Yoshihide Suga announced a goal of reducing Japan’s emissions by 46% in 2030 from its levels in 2013, compared to the previous target of a 26% reduction

Shares in renewable energy and other climate-related companies rose in Tokyo on Friday following the Japanese government’s pledge to further reduce greenhouse gas emissions.

Renova, an operator and developer of renewable power plants, ended 4% higher amid expectations that policies for tackling climate change will gain momentum.

Prime Minister Yoshihide Suga announced on Thursday a goal of reducing Japan’s emissions by 46% in 2030 from its levels in 2013, compared to the previous target of a 26% reduction.

Suga, who was attending a virtual climate summit hosted by U.S. President Joe Biden, said: We want to lead the world in public opinion by defining a top-level, ambitious goal.

On Friday, shares in West Holdings, a Japanese solar power company, gained 1.7%. NPC, which operates a solar power generation business, saw its stock price climb 2%.

Money managers have put increasing emphasis on environmental, social and governance (ESG) factors in their investment decision-making process.

Nippon Life Insurance, one of the country’s biggest private institutional investors, aims to achieve net-zero emissions for companies in its stock and bond portfolios by 2050.

The Tokyo Stock Exchange has also vowed to push companies to tackle climate change. New exchange chief Hiromi Yamaji told Nikkei that a market reorganization scheduled for next April will encourage companies to adopt more robust ESG initiatives. Those listed on the top-tier Prime market, for example, will be expected to raise their disclosure standards, including reporting on climate change risks.

The coronavirus pandemic has been a major factor driving green investments. A recent survey by MSCI revealed that nearly 80% of investors in the Asia-Pacific region raised ESG investments “significantly” or “moderately” in response to the pandemic.

Meanwhile, stocks in the steel industry, as well as the oil and gas sector, weakened on Friday.

Nippon Steel’s stock price shed 2.6%, while shares in Kobe Steel lost more than 1%. Japanese oil company Inpex dropped nearly 1%.

In Hong Kong, shares in PetroChina and Zhaojin Mining Industry declined.

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