17 February 2020

Investors encourage Japanese Government to lift
climate ambition with revised Paris pledge
International investor organisations, whose members have assets under management worth
hundreds of trillions in yen,​ have written to ​Prime Minister Shinzo Abe of Japan to encourage his
government to demonstrate global climate change leadership by strengthening its emissions
reduction pledges under the Paris Agreement ahead of the crucial 26th Conference of theParties (COP26) to the United Nations Framework Convention on Climate Change slated for
November in Glasgow.
In the letter the six investor organisations encourage the Japanese Government to increase theambition of its 2030 emissions reduction target from the current 26 per cent reduction goal andset a clear path to net-zero emissions by 2050.
The investor organisations also note that current emissions reduction pledges from all countries
are not yet sufficient to secure the Paris Agreement goal of limiting global warming to 1.5
degrees.
By lifting its ambition through a revised Nationally Determined Contribution under the Paris
Agreement, the investor organisations’ letter said Japan would create a positive market signalthat is key to unlocking the private capital needed to accelerate the transition to a zero-carbon
economy.
Anne Simpson, Director, Board Governance and Strategy at CalPERS said:“Japan is CalPERS’ second largest market for investment and we hope that we will see fresh
impetus on climate change targets to help manage the risks we face if global warming is not
kept to well below two degrees. We have great respect for our partners in Japan’s financial andbusiness community. Global commitment from all sides is urgently needed to ensure wemanage climate change risk.”Rebecca Mikula-Wright, Director of the Asia Investor Group on Climate Change, said:“​Japan’s approach to reducing emissions is being watched closely throughout Asia and thecountry can lead the region in capitalising on investment in clean technologies and tap into theapproximately ​¥50 trillion (US$460 billion) in annual investment required to 2030 to help
decarbonise the global energy system in line with 1.5 degrees​.

“If investors see strong and positive policy signals that encourage deeper emissions reductions
by 2030, and a clear path to net-zero emissions by mid-century, they will respond with greater
investment in clean technology and climate-resilient infrastructure,” Ms Mikula-Wright said.
Michiyo Morisawa, Director, Japan at CDP​ ​said:​ “It is in Japan’s economic interest to securea safe climate. ​Research from the Japanese Government​ shows the country is heavily exposed
to climate risks that will have strong market implications, such as more intense flooding andtyphoons, decreased agricultural yield quality and worsening heat illness, among others.
“​Responding to climate change is no longer a cost to the economy, but a growth strategy for thefuture in addition to securing a safe climate. Meeting the overarching goal of the ParisAgreement will significantly de-risk the Japanese and world economies from climate change andcreate opportunities for green innovation,​” Ms Morisawa said.
Fiona Reynolds, Chief Executive Officer of Principles for Responsible Investment said:“To meet the Paris goals, countries like Japan must achieve deeper emissions cuts by 2030 andzero-net emissions by 2050 or sooner. Setting more ambitious short-term goals on thisdecarbonisation path will ensure a smoother transition that avoids unnecessary shocks to theeconomy and communities.
“In the lead-up to COP26, investors encourage the Japanese Government to adopt a stronger
Nationally Determined Contribution, that includes credible emissions reduction targets, tomitigate economic climate risk and further embrace the clean investment on offer,” Ms Reynolds
said.
-- ENDS -Note to Editors
Signatories on the letter include: Asia Investor Group on Climate Change, Ceres, Institutional
Investors Group on Climate Change, Investor Group on Climate Change, CDP and thePrinciples for Responsible Investment.
The full letter to Prime Minister Abe (English) can be ​found here​.
For interviews and more information in English please contact:
Tom Arup
Director, Strategic Communications, Asia Investor Group on Climate Change+61(0)402482910
tom.arup@aigcc.net

For interviews and more information in Japanese and English please contact:
Michiyo Morisawa
Director, Japan, CDP+81(0)3 6225 2232
michiyo.morisawa@cdp.net
Head of Japan, Principles for Responsible Investment
michiyo.morisawa@unpri.org
Shin Furuno
Project Manager, Asia Investor Group on Climate Change+81(0)7027933648
shin.furuno@aigcc.net