Feb. 2018: Testing the Japanese listed equity market alignment with the 2°C climate goal – Energy technology diversification assessment relative to the IEA 2°C scenario
On 28 February, 2018, the 2° Investing Initiative (2°ii) released a report analysing the alignment of the Japanese stock market with the Paris Agreement on climate change, in partnership with Professor Jusen Asuka of Tohoku University, Dr. Michiyo Morisawa, Director of the CDP Japan office and Head of PRI Japan, Pr. Yoshihiro Fujii, Representative Director of Research Institute for Environmental Finance (RIEF), and the Institute for Global Environmental Strategies (IGES). Based on a comparison of the Tokyo Stock Price Index (TOPIX) with the International Energy Agency (IEA) 2°C scenario, the Japanese listed companies of the TOPIX appear to be globally misaligned with the 2°C climate goal. It means that investors exposed to the TOPIX index are, so far, not in line with the commitment of the Japanese Government to keep global warming well below the +2°C limit. These results call for investors to define more informed investment strategies towards decarbonization, and for policy makers to better incentivize the financial sector so that it can contribute effectively to the fight against climate change.