Tokyo “Beyond-Zero” Week 2021
The Ministry of Economy, Trade and Industry (METI) hosted Tokyo “Beyond-Zero” Week 2021 (October 4 to 8). To realize carbon neutrality and the“Beyond-Zero” initiative (i.e., not only global carbon neutrality, but also retroactively reducing CO2 through the stock base approach), METI held
conferences to present the approaches of Japan, which aims to accelerate the transition by utilizing a wide range of technologies and energy sources
and to establish and publicly implement innovative technologies. A total of about 17,000 people registered as viewers of these conferences.
The conferences brought together government oﬃcials and representatives of international organizations and research institutes from around the world,and held wide-ranging discussions on challenges in realizing “Beyond Zero,” as well as directions and methods for overcoming these challenges. With
the key concepts of “Various Pathways,” “Innovation,” and “Engagement with developing countries,” the conferences disseminated informationnecessary for realizing a “virtuous cycle of the economy and the environment” to the world.
The eight conferences held were as follows:(1) First Asia Green Growth Partnership Ministerial Meeting(2) Third International Conference on Carbon Recycling(3) Fourth Hydrogen Energy Ministerial Meeting(4) TCFD Summit 2021
(5) Tenth LNG Producer-Consumer Conference(6) Eighth Innovation for Cool Earth Forum (ICEF)(7) First International Conference on Fuel Ammonia(8) Third Research and Development 20 for Clean Energy Technologies (RD20) (Leader’s Session)

METI will host Tokyo “Beyond-Zero” Week 2022 next autumn

Japan will continue to demonstrate leadership in realizing the “Beyond-Zero” initiative through theconferences, which will further develop “Various Pathways,” “Innovation,” and “Engagement with
developing countries,” adding new elements, such as discussions on the use of the Green Innovation Fundlaunched in 2021 and border adjustment related to carbon neutrality.

Key Points : ”Various Pathways,” “Innovation,” “Engagement”

TCFD Summit 2021: Aim of the third round
Past summits
October 2019: World’s ﬁrst TCFD Summit held in Tokyo
Agreed on basic concepts, e.g., “from divestment to engagement,” “assessing not only risks but also opportunities is important,” and “provide platforms andmomentum for holding important discussions and learn to deal with the TCFD recommendations.”“Green Investment Guidance” released.

October 2020: Second TCFD Summit held online
Included sessions by practitioners to further put TCFD into practice. Participants shared their understanding and knowledge of climate-related ﬁnancial disclosures,such as “importance of evaluation based on materiality by industry” and “implementation of scenario analysis and case studies.”“The First Zero-Emission Challenge” announced.
TGIF Strategy presented.

Objectives of the third summit
Conﬁrm continued commitments to tackle climate change at the top level. At this stage of enhancing disclosure content, deepen discussion on integration oftransition strategies and TCFD disclosures, methods of Scope 3 disclosures, and avoided emissions, and communicate the Consortium’ s international collaboration
initiatives.
Announce Japan’ s revised “Green Investment Guidance” and “Zero Emissions Challenge 2” to the world.

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TCFD Summit 2021 Overview
1. Overview
Date/Time
Venue
Participants
Host

October 5th (Tue) 13:00-18:30 (JST, GMT+9:00)
Grand Prince Hotel Takanawa + Online
About 3,600 (J : about 3,450, E : about 150)
Ministry of Economy, Trade and Industry

Co-Host

TCFD Consortium, WBCSD

2. Program

Message

Panel Discussion

Welcome Message

Minister of Economy, Trade and Industry (message read on his behalf)/ Vice-Minister for International Aﬀairs, METI

Opening Remarks

ITO Kunio, Chair of the TCFD Consortium/ Engaged in TCFD globally

Keynote Speech 1

President, GPIF/ CEO, State Street Corporation

Panel Discussion 1

Asset owner’s role in today’s TCFD disclosure landscapeKeynote Speech 2

Chairman, Keidanren (Japan Business Federation)/ President & CEO, Tokyo Stock Exchange, Inc.

Panel Discussion 2

Eﬀorts to improve the quality of TCFD disclosure

Keynote Speech 3

Ministry of Economy, Trade and Industry

Panel Discussion 3

TCFD disclosures and transition strategy

Keynote Speech 4

Chairman, Japanese Bankers Association

Panel Discussion 4

TCFD disclosures in Trans-Paciﬁc region

Closing Remarks

MIZUNO Hiromichi, Special Envoy Of U.N Secretary-general On Innovative Finance And Sustainable Investment
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Climate change commitments made at the top level
Valdis Dombrovskis (Executive Vice-President, European Commission): The EU and Japan can cooperate more in the areas of sustainable ﬁnance and climate action,
and are expected to work closely together in future high-level economic dialogues and economic partnership agreements.
Mark Carney (Finance Adviser to the Prime Minister for COP26 and UN Special Envoy for Climate Action and Finance): Ahead of COP26, we are calling on majorcountries to make TCFD disclosures mandatory. Japan has been a leader in voluntary disclosures and has also adapted progressively to mandatory disclosures byrevising its Corporate Governance Code.
Mary L. Schapiro (Head of the TCFD Secretariat): The establishment of a global standard for climate and sustainability reporting is an important mission for the TCFD
and the TCFD recommendations serve as a foundation for these standards, acting as a common thread to tie together this work to establish the standards.
KURODA Haruhiko (Governor of the Bank of Japan): The BoJ decided on a comprehensive action policy on climate change and will enhance TCFD disclosures by ﬁnancial
institutions through monetary policy and dialogues during examinations and monitoring, and will also work on the BoJ’s own TCFD disclosures.
Peter Bakker (President & Chief Executive Oﬃcer of WBCSD): We must strengthen communication and alignment between companies and investors in order tointegrate sustainability into capital allocation decisions.
ITO Kunio (Chair of the TCFD Consortium): In response to the growing interest in disclosures, the TCFD Consortium revised the Green Investment Guidance guide forinvestors, conducted roundtables to enhance dialogue among the ﬁnancial, business, and government sectors, and deepened international collaboration.

Opening
Remarks

Valdis Dombrovskis
Mark Carney
Mary L. Schapiro
Peter Bakker
ITO Kunio

Valdis Dombrovskis
Executive Vice-President,
European Commission(Executive Vice-President, European Commission)(Finance Adviser to the Prime Minister for COP26 and UN Special Envoy for Climate Action and Finance)(Head of the TCFD Secretariat)
KURODA Haruhiko(Governor of the Bank of Japan)(President & Chief Executive Oﬃcer of WBCSD)(Chair of the TCFD Consortium, Director of Hitotsubashi CFO Education and Research Center)

Mark Carney
Finance Adviser to the Prime Minister for COP26 andUN Special Envoy for Climate Action and FinanceMary L. Schapiro
Head of the TCFD Secretariat

KURODA HaruhikoGovernor of the Bank of Japan

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Peter Bakker
President & CEO of WBCSDITO Kunio
Chair of the TCFD Consortium

Messages communicated in the panel discussions
Asset owner’s role in today’s TCFD disclosure landscape

Moderator: MIZUNO Hiromichi (Special Envoy Of U.N Secretary-general On Innovative Finance And Sustainable Investment)

Discussion 1

TCFD disclosures have become indispensable as disclosures become mandatory. Because asset owners need to conduct analyses of long-term
beneﬁts, it is hoped that metrics and targets that contribute to this analysis are disclosed and standardized. Commitment by banks is also
important.
Net zero commitments by investors should be achieved through engagement rather than divestment.

Efforts to improve the quality of TCFD disclosure

Moderator: NAGAMURA Masaaki (Fellow International Initiatives, Tokio Marine Holdings, Inc.)

Discussion 2

Panelists conﬁrmed the importance of Scope 3 disclosures and elaborated on their eﬀorts to reduce emissions throughout the value chain. Getting
recognition for contribution to society-wide CO2 emissions reductions gives companies motivation.
Investors should evaluate the value created by corporate strategies. Dialogue between investors and companies is important for companies toexercise creativity. Disclosures must not merely become a tick-box exercise.

TCFD disclosures and transition strategy

Moderator: ITO Kunio (Chair of the TCFD Consortium, Director of Hitotsubashi CFO Education and Research Center)

Discussion 3

Discussed the aﬃnity between the disclosures required in transition ﬁnance and thedisclosures of transition plans required by TCFD disclosures.
Energy companies shared their transition ﬁnance experiences. The disclosure oftransition plans is especially important for energy companies that also need to shift
their business portfolio.

TCFD disclosures in Trans-Pacific region
Moderator: FUJIMURA Takehiro (General Manager, Corporate Sustainability & CSR Department, Mitsubishi Corporation)
Discussion 4

Asian ﬁnancial institutions, companies, and a consortium launched in Mexico modeled on the TCFD Consortium discussed promotion of global
TCFD disclosures.
Much of Asia is an emerging market, and many companies need to transition to a low-carbon economy. Corporate disclosures are important for
credible transition ﬁnancing. Such disclosures should comply with the TCFD recommendations.
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TCFD Summit Summary of Results: Closing Remarks
COP26 will be the most important COP, as world leaders, including the Government of Japan, declare their commitment to reach carbon neutrality by 2050. It ismeaningful that this summit was held prior to COP26, and that a number of important points were made and the importance of the TCFD was reaﬃrmed. I expectthat many initiatives will be announced in the lead-up to COP, and that Japan will continue to exercise leadership in promoting the TCFD.
Asset owners have a signiﬁcant role. It is essential to use collective engagement and fulﬁll responsible ownership through engagement rather than divestment.
Reducing life-cycle emissions is critical, but there are practical challenges. Methods of calculating emissions must be established for Scope 3 disclosures. We alsoneed to recognize the principles of why Scope 3 is necessary and not let the standardization of metrics become a tick-box exercise.
The transition to sustainable businesses is vital. At this time, it is unrealistic for everyone to turn completely green. We must gradually change to a lower emission
business model. A roadmap or pathway is needed in order to keep transition ﬁnance from turning into greenwashing, and such roadmaps and pathways will beannounced by governments and industries.
It has become clear that countries must help each other to this end. It is striking that Mexico in particular is promoting disclosures by getting ideas from theJapanese consortium.
The ultimate goal of the TCFD is to use it as a framework to advance the discussion on climate change, induce business and capital shifts, and create a better future.

Closing Remarks<TCFD Summit 2021 Related Links>
Summit HP

https://tcfd-summit.go.jp/index.html

Summit Video 1

https://youtu.be/38oIr2z5vrg / https://youtu.be/aHb9ePvT8RI(English Audio/Original Audio)

Summit Video 2

https://youtu.be/1N18ULs4CrY / https://youtu.be/HRo_7a9tcFQ(English Audio/Original Audio)

Summit Video 3

https://youtu.be/CUajQDTNRFY / https://youtu.be/QQYgZDYhkEU(English Audio/Original Audio)

Key Takeaways

https://tcfd-summit.go.jp/assets/dl/reault/key_takeaways.pdf
5

MIZUNO Hiromichi(Special Envoy Of U.N Secretary-general
On Innovative Finance And Sustainable Investment)[Reference] TCFD Summit Summary of Results (1): Welcome Message
Minister of Economy, Trade and Industry Hagiuda delivered remarks to open the summit (read by a METI oﬃcial on his behalf). The remarks stated it was importantthat Japan rise to the challenge of achieving its targets and becoming carbon neutral by 2050, and contribute to global carbon neutrality. He noted that as with Japan,
it is important all countries pursue their own variety of paths to achievement, in line with their actual circumstances, and creating innovation would be the key. He said
the Japanese Government will support TCFD disclosure and take the initiative in contributing to measures against climate change.
Vice-Minister for International Aﬀairs Hirose stated the following. With a view toward total carbon neutrality worldwide, Japan will lead global decarbonization byaiming to establish innovative technologies and actually implementing them within society, in order to achieve “Beyond Zero.” By funding these technologies, Japan
will aim to create a trend whereby ﬁnancing provides companies with the impetus to engage in eﬀorts toward achieving carbon neutrality. In doing so, disclosure will
become the basis on which companies’ endeavors are assessed. Against this backdrop, Vice-Minister Hirose stated that METI would continue to support the promotionof TCFD disclosures. In addition, he released a list of approximately 600 companies for this year’s companies that are tirelessly pursuing innovation toward adecarbonized society as “Companies Taking on the Zero-Emission Challenge.”

WelcomeMessage

HAGIUDA Koichi (Minister of Economy, Trade and Industry)*Message read on behalf
HIROSE Naoshi (Vice-Minister for International Aﬀairs, METI)HAGIUDA Koichi(Minister of Economy, Trade and Industry)6

HIROSE Naoshi(Vice-Minister for International Affairs, METI)[Reference] TCFD Summit Summary of Results (2):Discussion 1 “Asset owner’s role in today’s TCFD disclosure landscape”
GPIF President Miyazono stated that the GPIF would work to improve analysis to properly identify the impact of climate change on corporate value and industrial
structure, while also striving to improve the sustainability of the market as a whole.
State Street Chairman O’Hanley expected more companies to adopt and endorse the TCFD recommendations, and stated that State Street would assist in sharing
industry best practices rather than taking a one-size-ﬁts-all approach.
It was noted that amidst the trend toward decarbonization, the TCFD framework has become indispensable, mandatory disclosure eﬀorts are under way, and in thispast year disclosures gained further in importance.
Asset owners discussed their need to allocate capital based on reliable data, making it important to consider long-term beneﬁts based on disclosure of metrics andtargets and other quantitative analysis. To conduct this analysis, they hoped disclosures would become standardized. It was recommended that, in the ﬁnancial
industry, commitments be made not only by asset owners but also banks whose investments and loans are illiquid.
Net zero commitments by investors will not be achieved by divestment; engagement is the solution. Asset owners will practice engagement not only individually but
also collectively. Asset managers said they would discuss a clear approach with asset owners, drawing on the results of quantitative scenario analysis.
It was recommended that governments present concrete plans in addition to commitments, since public-private cooperation is required for the realization of the Paris
Agreement.

KeynoteSpeech 1

MIYAZONO Masataka
Ronald P. O’Hanley<Moderator>
MIZUNO Hiromichi
Panel
Discussion1<Panelist>
Marcie Frost
SUGANO Akira
Edward Baker
SHIGEMOTO Kazuyuki(President, Government Pension Investment Fund)(Chairman and CEO, State Street Corporation)(Special Envoy Of U.N Secretary-general On Innovative
Finance And Sustainable Investment)

MIYAZONO Masataka(President, GPIF)

Ronald P. O’Hanley(Chairman and CEO, State Street Corporation)(CEO, California Public Employees' Retirement System (CalPERS))(President & CEO, Asset Management One Co., Ltd.)(Head of Climate Policy, PRI)
(Executive Oﬃcer, Chief General Manager, Investment,
The Dai-ichi Life Insurance Company, Limited)7

Panel Discussion 1

[Reference] TCFD Summit Summary of Results (3):Discussion 2 “Efforts to improve the quality of TCFD disclosure”
Chairman Tokura of Keidanren stated that it would work to further expand the number of TCFD supporters and deepen dialogue with ﬁnancial institutions andinvestors, alongside participating in discussions and disseminating information on transition ﬁnance. In addition, Keidanren would make eﬀorts to reduce emissions
across the entire value chain.
President & CEO Yamaji of Tokyo Stock Exchange explained that companies listed on the new prime market to be launched next year are required to enhance thequality and quantity of their disclosures based on the TCFD or an equivalent framework. He said it was essential that TCFD disclosures make progress, that disclosure
information be used for corporate valuation, and that funding be provided for companies that proactively address climate change, for transition to a low-carbon
economy, and for innovative technologies.
Company, ﬁnancial institution, government authority, and TCFD representatives exchanged views on the leading issues of TCFD disclosures. Mandatory TCFD disclosureand the establishment of international standards are making headway around the world. Investor-company dialogue is important for companies to exercise creativity,and it was recommended that disclosures not merely become a tick-box-type exercise.
Guides have been created for assisting more enhanced disclosures. Presentations were made on the TCFD proposed guidance on metrics, targets, and transition plans
and the associated portfolio alignment, as well as on the revisions made to Japan’s Green Investment Guidance. The TCFD expressed appreciation for the comments
submitted to the public consultation on the proposed guidance, and explained that it attaches great importance to the responses received during the public
consultation.
With regard to TCFD disclosures, panelists shared the view that it is important, albeit diﬃcult, to identify and reduce Scope 3 emissions, and elaborated on eﬀorts to
reduce emissions throughout the value chain. Companies said it provides motivation when they are recognized for their contribution to society-wide CO2 emissions
reductions through new products and technologies. Investors expressed the opinion that investee companies’ disclosure of strategies in line with the TCFD
recommendations is useful for portfolio management, and that investors should evaluate the value created by corporate strategies.

KeynoteSpeech 2

Panel
Discussion2

TOKURA Masakazu
YAMAJI Hiromi(Chairman of Keidanren)(President & CEO, Tokyo Stock Exchange, Inc.)<Moderator>
NAGAMURA Masaaki(Fellow International Initiatives, Tokio Marine Holdings, Inc.)<Panelist>
IKEDA Satoshi
Becky Swanson
TSUDA Megumu

TOKURA Masakazu(Chairman of Keidanren)

YAMAJI Hiromi(President & CEO, Tokyo Stock Exchange, Inc.)(Chief Sustainable Finance Oﬃcer, Strategy Development
and Management Bureau, Financial Services Agency)(TCFD Secretariat Support/
Senior Consultant, Financial Services, Oliver Wyman)(Deputy General Manager of Sustainability Promotion Division,
Government & External Relations Group, Hitachi, Ltd.)
Panel Discussion 2

8[Reference] TCFD Summit Summary of Results (4):Discussion 3 “TCFD disclosures and transition strategy”
Director-General Nasuno of the Industrial Science and Technology Policy and Environment Bureau, METI presented on the transition ﬁnance measures of theGovernment of Japan.
Discussions were held with Japanese and overseas energy companies on the aﬃnity between the disclosures required in transition ﬁnance and the disclosures oftransition plans required by TCFD disclosures.
Investors, banks and insurance companies must support the transitions of companies, and companies must seize business opportunities created by climate change intheir transition planning. Climate-related metrics and targets must form the basis of transition plans, and the plans need to be given credibility through supervision
and accountability. This is also in line with the transition ﬁnance approach promoted by ICMA.
Transition ﬁnance is essential for companies around the world that are aiming to become carbon neutral, and the disclosure of transition plans is especially importantfor energy companies that also need to shift their business portfolio. Energy companies shared their experiences with transition ﬁnance and their expectations forﬁnance going forward.

KeynoteSpeech 3

NASUNO Futoshi<Moderator>
ITO Kunio<Panelist>
Kaja Pergar
Panel
Discussion3

Nicholas Pfaﬀ
Sergio Molisani
TERAKAMI Michiyo

HAYASHI Reiko(Director-General, Industrial Science and Technology Policy
and Environment Bureau, Ministry of Economy, Trade and Industry)(Chair of the TCFD Consortium, Director of Hitotsubashi CFO
Education and Research Center)(TCFD Secretariat Support / Engagement Manager,
Climate and Sustainability, Oliver Wyman)(Head of Sustainable Finance, ICMA)(Finance, Insurance, Tax Director & SVP
International Assets, Snam SpA)
(Executive Oﬃcer (Regional Revitalization Business
Department) and General Manager, Corporate
Sustainability Department, Idemitsu Kosan Co., Ltd.)(Director and Deputy President, BofA Securities Japan Co., Ltd.)NASUNO Futoshi(Director-General, Industrial Science andTechnology Policy and Environment Bureau, METI)

Panel Discussion 3

9[Reference] TCFD Summit Summary of Results (5):Discussion 4 ”TCFD disclosures in Trans-Pacific region”
Chairman Takashima of the Japanese Bankers Association stated the Japanese banking industry would work with customers to achieve the transition to a decarbonizedsociety, engaging with them rather than simply divesting. In addition, he indicated that information on customers’ transition strategies and greenhouse gas emissions
data is particularly important for banks to provide support to companies.
Members of Asian ﬁnancial institutions, companies, and a consortium launched in Mexico held wide-ranging discussions on the promotion of global TCFD disclosures.
They shared their understanding of the need for decarbonization in Asia and the Trans-Paciﬁc region and the usefulness of disclosures to this end, and delivered
presentations on their experience of structuring transition loans based on disclosure.
Much of the Asian region is an emerging market, making rapid decarbonization diﬃcult. Given the large number of companies that need to transition to a low-carbon
economy, ﬁnancial institutions expressed the view that corporate information disclosure is important for implementing credible transition ﬁnancing and supporting
customer strategies, and that such disclosure should be in line with the TCFD recommendations. It was also advised that companies embarking on disclosures should
understand the future beneﬁts and create a cross-company disclosure system, and that they should make use of external experts.
Mexico delivered a presentation on the trend of establishing TCFD consortiums and its use of Japan’s TCFD Consortium as a model case.

KeynoteSpeech 4

TAKASHIMA Makoto<Moderator>
FUJIMURA Takehiro<Panelist>
Ma. Victoria A. Tan
Panel
Discussion4

TANAKA Toshiaki
Yulanda Chung
OSHIMA Koichiro(Chairman, Japanese Bankers Association/ President and CEO,
Sumitomo Mitsui Banking Corporation)(General Manager, Corporate Sustainability & CSR Department,
Mitsubishi Corporation)(Executive Director, Group Risk Management
And Sustainability, Ayala Corporation)(Member of the Board, Senior Managing Executive Oﬃcer,
Chief Environment & Sustainability Oﬃcer, Director General,
Dry Bulk Business Unit, Mitsui O.S.K. Lines, Ltd.)(Head Of Sustainability, Institutional Banking Group, DBS Bank)(Managing Executive Oﬃcer, Head of Financial Solutions Group,
MUFG Bank, Ltd.)<Video message>
Juan Carlos Belausteguigoitia (Consorcio TCFD México/ Director,
Centro De Energía Y Recursos Naturales,
Instituto Tecnológico Autónomo De México)
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TAKASHIMA Makoto(Chairman, Japanese Bankers Association)

Panel Discussion 4