“Global Financial City: Tokyo” Vision
2.0～ Realizing a Sustainable Recovery to Become a
Global Financial City Leading the World ～November 2021
Tokyo Metropolitan Government

Table of Contents
Ⅰ Introduction

・・・ ２

Ⅱ Image of a global financial city that Tokyo should aim for・・・ ４（１） Significance of realizing the “Global Financial City: Tokyo” vision（２） Ideal state of “Global Financial City: Tokyo” leading the world（３） Challenges in realizing the ideal state・・・１７

Ⅲ Specific measures
１ Establishment of a robust financial market that helps solve social issues～Promotion of the “Tokyo Green Finance Initiative (TGFI)”～

・・・１８（１） Accelerating the development of Tokyo’s green finance market（２） Attracting market players and supporting business development（３） Sharing information and nurturing ESG expertise
２ Digitalization of finance through the utilization of FinTech, etc.

・・・２６

（１） Attraction, establishment, and growth support for FinTech companies（２） Promotion of digitalization of funds intermediaries（３） Promotion of cashless payments
３ Accumulation of asset managers and other diverse financial players

・・・３２（１）Promoting the attraction of asset managers, etc.
（２）Establishment and growth support for asset managers（３）Development of financial professionals and improvement of financial literacy
Ⅳ Dissemination of information on each initiative (promotion)

・・・３９

Ⅴ Structure to realize the contents of the “Global Financial City: Tokyo” Vision

・・・４１

Ⅵ KPIs to be achieved by 2025 and 2030

・・・４４Ⅶ Conclusion

・・・４７（Reference）

・・・４８① Tokyo Green Finance Initiative（TGFI）～Proposals for Developing Green Finance～（Overview）② Key points in the revision of the "Global Financial City: Tokyo" Vision
・・・５０

Glossary-1-

Ⅰ Introduction
The global financial situation is in the midst of dramatic change.
The environment surrounding international finance is changing at a rapid pace, as seen in thechanges in the situation in Asia and in European financial markets following the UK's exitfrom the EU (Brexit), the abolition of the London Interbank Offered Rate (LIBOR), growing
global interest in sustainable finance, moves toward digitalization, and the COVID-19
pandemic around the world. In particular, in recent years there has been a rapid accelerationin calls for measures to deal with the climate crisis and ^ initiatives to decarbonize the world.
Under these circumstances, green finance, which can help solve these problems, has been
gaining attention and has become a major global trend.
Tokyo's position as a global financial city would be in jeopardy if the city cannot respond quickly
to these drastic changes in the global financial environment. Amid intensified competition withother cities, such as Singapore and Hong Kong, to become one of the leading global financial
cities in Asia, it is essential for Tokyo to appropriately and swiftly respond to the turbulent
global situation in order to survive such fierce competition. With a strong awareness of thesecrises, the Tokyo Metropolitan Government (TMG) has decided to revise its "Global Financial
City: Tokyo" Vision (hereinafter referred to as the "Vision"), which was formulated in
November 2017.
To revise this "Vision," it is necessary to clarify the image of the city that Tokyo should aim for,with a view to taking advantage of its strengths, and to implement specific measures, while
focusing on key points based on challenges facing Tokyo. In addition, it is important toestablish a system of coordination and cooperation with various stakeholders for the purposeof promoting the "Vision", as well as set specific goals, monitor their achievement, and further
deepen such measures.
Based on these perspectives and taking into account its strengths, Tokyo, as a financial hub in
Asia, aims to build an investment chain that links domestic and international capital demand
to worldwide capital supply, against a backdrop of enormous domestic capital demand basedon the existence of diverse companies and projects in Japan and domestic capital supply
capacity. Here, Tokyo’s strengths include being the world's third largest economy, the existenceof approximately 1,900 trillion JPY in personal financial assets, high levels of comprehensive
strengths as a city, political stability, and firm rule of law.
To this end, in accordance with the new "Vision", TMG will develop measures focusing on threepillars: ①Promotion of green finance, ② Financial digitalization, and ③ Accumulation ofdiverse finance-related players, in light of changes in the global financial environment and thechallenges facing Tokyo.
-2-

The first pillar, "Promotion of green finance," has been studied by experts participating in acommittee for the realization of the "Tokyo Green Finance Market (tentative name)."In June
2021, the study group compiled a report entitled "Tokyo Green Finance Initiative (TGFI):
Proposals for Developing Green Finance." The report defines the "Tokyo Green FinanceInitiative (TGFI)" as "a strategic initiative to develop Tokyo’s green finance ecosystem"
involving a wide range of parties, not limited to the measures taken by TMG. It proposes the
direction of measures to improve the lives of Tokyo residents and achieve sustainable economic
development by creating a virtuous cycle of "environment" and "economy" from Tokyo andsimultaneously promoting the green transformation of Tokyo's "urban system" and "financial
system.” The contents of this report are fully incorporated in this "Vision."
In addition, as a foundation to ensure the effectiveness of the initiatives based on these threepillars, TMG will actively disseminate information (conduct promotion) regarding the "Vision"and the various initiatives based on it more than ever before. The Organization of Global
Financial City Tokyo (FinCity.Tokyo, hereinafter referred to as "FCT"), Japan's first publicprivate financial promotion organization, was established in April 2019 bringing together
various financial industry players. The positioning of FCT and the division of roles between
FCT and TMG will be clearly outlined in the "Vision."
In order to promote this "Vision", TMG will work closely with the national government, FCT
and other financial industry players, the City of London in the U.K., etc., and introduce target
management using Key Performance Indicators (KPIs), thereby reviewing measures andcreating new initiatives taking into account the status of achievement.
In an effort to evolve into the "Global Financial City: Tokyo" leading the world on par withNew York and London, TMG will steadily promote the initiatives contained in the "Vision" withthe aim of realizing Tokyo's "Sustainable Recovery", economic growth, and an affluent lifestylefor Tokyo residents.

-3-

Ⅱ Image of a global financial city that Tokyo should aim for（１） Significance of realizing the “Global Financial City: Tokyo”（Realizing a Sustainable Recovery to Become a Global Financial City Leading theWorld）
Tokyo is experiencing a declining birthrate and an aging population at a rapid rate that noother city in the world has ever experienced. As a result, the Tokyo has to face in earnest the
decline in the potential economic growth rate associated with the declining working-age
population. In addition, the spread of COVID-19 has brought about economic stagnation andhighlighted the lagging digitalization of Japanese society as a whole. Furthermore, the climate
crisis, which has become more serious in recent years, poses a major threat to the lives andproperties of the people of Japan.
In the wake of these structural changes in society and the various issues brought to light by
the COVID-19, etc., highly effective measures, which will lead to new growth for Tokyo, should
be developed to achieve a "Sustainable Recovery."Finance plays an extremely important role in implementing these measures. The financial
industry accounts for nearly 10 percent of Tokyo's GDP, making it the city's "indigenous
industry", so to speak. The financial industry is also known as the "lifeblood of the economy,"
and its revitalization will not only be a driving force for the growth of the industry as a whole,
but will also enhance the attractiveness and competitiveness of Tokyo
Given these facts, TMG's long-term strategy, "the Strategic Vision for Tokyo's Future", has
positioned “establishment of the "Global Financial City: Tokyo" as a financial hub in Asia andalso in the world, by developing strategic initiatives leveraging Tokyo's strengths as a core
initiative in the "Innovation Strategy for Tokyo with Earning Power."
The promotion of initiatives aimed at realizing the "Global Financial City: Tokyo" will supply
the people's financial assets to growth sectors through the functioning of the financial andcapital markets. This will create new industries and strengthen competitiveness. In addition,
the accumulation of financial players will enable the provision of new financial products andinnovative services. This can be expected to improve the asset formation and convenience ofpeople's lives, resulting in the development of not only Tokyo, but of Japan as a whole.
Moreover, the stimulation of green finance, which is becoming increasingly important as Tokyo
aims to become a global financial center, will accelerate decarbonization efforts and contributeto sustainable recovery, leading to sustainable economic growth for Tokyo and, ultimately, tothe realization of affluent lifestyles for Tokyo residents.
-4-≪COLUMN≫ About a Global Financial City
The following are various definitions of "global financial city" (including the definitions ofglobal financial centers and illustrative definitions).
・Nissay Research Institute, "Japan's Efforts to Realize a Global Financial Center" (March 23,2021)
A city where a large number of financial institutions and investors are concentrated, andtransactions of financial products are conducted on a global scale by attracting excellent
human resources, funds, and information from all over the world.
・The Nikkei: "Requirements of Global Financial Centers (1) Tokyo's Current Position" Hiroshi
Akabane, Professor, Faculty of Urban Innovation, Asia University (January 28, 2021)
Let's take a look at the definition of global financial centers. I believe global financial centers
are rarely covered in the textbooks on economics and financial theory used for university
classes.

Therefore, I am going to provide the overview taking into account the ideas offinancial institutions, which are actually playing in this field, and previous studies.
A "financial center" is a place where financial institutions gather to trade physicalcommodities, futures, and derivatives (financial derivatives) of interest rates, currencies,
stocks, and bonds.
A "global financial center" is a place where such a wide variety of financial instruments andrelated transactions as well as players are globalized. Globalization refers to cities andregions with financial and capital markets between residents and non-residents as well as
between non-residents.
・Mizuho Research Institute (now Mizuho Research & Technologies, Ltd.), "Mizuho Research"(August 2007)
A global financial city refers to a financial or capital market where international financialtransactions, such as fund transactions between residents and non-residents as well as
between non-residents and foreign currency-denominated fund transactions between
residents, are actively conducted; or a city where such markets are located.
This Vision defines "global financial city" as a city with the following features:(1) Funds intermediaries (asset managers, financial institutions, etc.) are actively
engaged, and domestic and foreign investors (individual and corporate investors) aresupplying ample funds to domestic and foreign investees (companies, projects,
financial products, etc.);(2) There is an accumulation of financial companies, human resources, funds, andinformation from around the world; and(3) In addition to domestic financial transactions, international financial transactions of-5-various financial instruments are actively conducted.

（２）Ideal state of “Global Financial City: Tokyo” leading the world
The competition with other overseas cities such as Shanghai, Hong Kong, and Singapore,
which are also aiming to become one of the leading global financial cities in Asia, is becoming
increasingly fierce. In revising the "Vision" under such circumstances, it is necessary to clarify
an image of the global financial city that Tokyo should aim for, taking advantage of its
strengths.
① Tokyo’s strengths
Table 1 shows the personal financial assets of countries around the world in 2019. Japan has
about 1,900 trillion JPY in domestic personal financial assets, of which the majority (54.3
percent as of March 31, 2021 (Table 2)) is in the form of cash and deposits. This can be regarded
as a strength in terms of the potential supply of funds to growth sectors and the large business
opportunities for asset managers.
＜Table 1 Personal financial assets of countries around the world（2019）＞（Unit: in trillions of USD）

【Sources】 OECD (2021), Population (indicator). doi: 10.1787/d434f82b-en (Accessed on June 21, 2021)
OECD (2021), Household financial assets (indicator). doi: 10.1787/7519b9dc-en (Accessed on June 21, 2021)※Personal financial assets per capita in 2019 (2016 for India only) multiplied by the population of each country in 2018 (latest OECD figures)＜Table 2 Composition of personal financial assets＞※ Japan: as of the end of March 2021; U.S. and Euro Ara: as of the end of March 2020

【Sources】 Japan: Research and Statistics Department of Bank of Japan, Flow of Funds in Q1 FY2021 (preliminary-6-

report), June 25, 2021
U.S. and Euro Area: Research and Statistics Department of Bank of Japan, Flow of Funds Comparison among
Japan, the U.S. and Europe (as of March 31, 2021), August 21, 2020

Table 3 indicates the nominal GDP of countries around the world in 2019. As the world's thirdlargest economy by GDP, Japan has a wide variety of industries and projects to invest in.

（Unit: in trillions＜Table 3 Nominal GDP of countries around the world（2019）＞

of USD）【Source】International Economy Division, Economic Affairs Bureau, Ministry of Foreign Affairs, Major Economic Indicators, May 2021

Table 4 shows the total stock market capitalization of the world's major exchanges as of theend of February 2021. Tokyo is home to the Tokyo Stock Exchange, one of the world's largest
listed stock exchanges in terms of market capitalization.
＜Table 4 Total stock market capitalization of the world's major exchanges（End of February 2021）＞（Unit; in millions of USD）

【Source】 Compiled by Tokyo Metropolitan Government based on data from the Nomura Institute of CapitalMarkets Research website, Statistics & Data: Stock Market

Tokyo also possesses a high level of comprehensive power as a city to attract people andcompanies from all over the world. Since 2016, Tokyo has maintained its position as the world's
third-largest city after New York and London, and first in Asia in the Global Power City Index(GPCI) published annually by the Mori Memorial Foundation.

-7-

Furthermore, Tokyo is highly regarded by other countries for its political and economic
environment, including political stability and the rule of law, its safe living environment, andits rich nature and culture, including cuisine.

-8-About the Global Power City Index (GPCI)・The "Global Power City Index (GPCI)" is published annually by the Institute of Urban
Strategies of the Mori Memorial Foundation, based on the idea that the "magnetism"
to attract people and businesses in international inter-city competition is created by thecomprehensive power of the city itself.
・ The GPCI evaluates and ranks the "comprehensive power" of the world's major cities
by measuring the six functions: Economy, Research and Development, Cultural
Interaction, Livability, Environment, and Accessibility — providing a multidimensional
ranking.
・ Since the basis for the evaluation is disclosed in detail, the strengths, weaknesses, andchallenges of each city can be verified concretely.
・ Recent rankings are shown below.
【Trends in the Global Power City Index (2011 through 2020)】

Frankfurt

Hong Kong

SydneyViennaFrankfurt【Global Power City Index by Function (2020)】
City

EconomyR&D

CulturalInteraction

Livability

Environment Accessibility

London
New York
Tokyo
Paris
Singapore
Amsterdam
BerlinSeoul
Hong Kong
Shanghai【Source】Mori Memorial Foundation, Summary of Global Power City Index, December 2020-9-

② Image of a global financial city that Tokyo should aim for（”Real economy backed- type”
global financial city）
Global financial cities in the world can be broadly classified into the following four types basedon their strategies and structures.

Strategy / Structure

Description

Real economy backedtype

A center of financial transactions with theconcentration of companies and a stock
exchange, etc., attracting investors to invest inindustries (supply of funds)
A center of information accumulation oninterest rates, foreign exchange, insurance, etc.
A city functioning as a relay station for
financial transactions between outside regions,rather than based on the economic force within
the region.
A gateway (entry point) for investment fromabroad into a country or region

Information/knowledge
intensive type
Financialintermediary-type

Gateway-type

Major cities
・New York・Shanghai

・London・Singapore(London)・Hong Kong
(London）

Taking into account the aforementioned Tokyo's strengths, such as its nearly 1,900 trillion JPY
in domestic financial assets and the existence of industries (the real economy) that have a needfor funds, it is important to seek to become a "real economy backed-type" global financial city
like New York in the above category.
Specifically, TMG will aim to build an investment chain that links funds from around the world
to the demand for funds at home and abroad, using the attracting power of the huge domestic
demand for funds based on the existence of diverse companies and projects in Japan and the
supply of funds from all over the world.
In other words, an image of the global financial city that Tokyo should aim for is one in which"funds intermediaries (asset managers, financial institutions, etc.)" are actively engaged;"domestic and foreign investors (individual, corporate, institutional investors, etc.)" supply
ample funds to "domestic and foreign investees (companies, projects, financial products, etc.";
and comprehensive urban functions and enhanced infrastructure support these activities;
thereby creating a virtuous cycle of investment and return. This will contribute to the growthof the financial industry itself, the growth of investee companies, and ultimately to the GDP
and sustained economic growth of Tokyo and Japan as a whole.

- 10 -Given the potential changes in the relative position of Japan's economy due to the future economic
development ofemerging countries, it

isimportanttocombinethefunctionsof"Information/knowledge intensive-type" global financial city, as represented by London, in order toactively introduce new financial products (e.g. insurance, interest rate derivatives, credit default
swaps, etc.) and expand the market ahead of the rest of the world in the future.

- 11 -

（３）Challenges in realizing the ideal state①

Response to evolving green finance

Tables 5 and 6 show the global balance of sustainable investment (the balance of sustainable
investment by asset managers, institutional investors, etc. in each country), which increased
about 2.7 times in the eight years from 2012 to 2020. Moreover, some estimates suggest thatby 2030, it will increase to about 3.7 times the size of 2020. On the other hand, Japan's shareof the total sustainable investment balance remains at 8 percent.
＜Table 5 Sustainable Investment Balance＞

America（Unit: in billions of USD））【Source】 Global Sustainable Investment Alliance GLOBAL SUSTAINABLE INVESTMENT REVIEW 2020 (July 2021)
Deutsche Bank, Climate change and corporates Past the tipping point with customers and stock markets (November 2019)＜Table 6 Ratio of sustainable investment balance by country (region)＞【Source】 Global Sustainable Investment Alliance, 2020 GLOBAL SUSTAINABLE INVESTMENTREVIEW (July 2021)- 12 -

Table 7 shows the trends in the annual issuance of green bonds worldwide (aggregating theannual amount of green bonds issued by domestic companies and other entities, including
national and local governments). The amount of green bonds issued worldwide has increased
significantly, climbing about 7.9 times in the six years from 2014 to 2020. Some estimatessuggest that by 2035, the amount of green bonds issued will increase to about 2.1 to 2.5 times
the size of those issued in 2020. The amount of green bond issuance publicly offered in Japanis also growing rapidly, reaching 775.4 billion JPY in 2020. However, it is still at a low levelcompared to the global issuance of about 290 billion USD (around 30 trillion JPY).
（Unit: in billions of USD）

＜Table 7 Trends in the annual issuance of green bonds＞
Approx. 620～720（Forecast）【Source】 Climate Bonds Initiative, Market Data Platform, as of June 1, 2021; OECD, Analysing potential bondcontributions in a low-carbon transition【Source】 Japan Securities Dealers Association, Transition of SDGs publicly offered bonds issuance in Japan (May 10,
2021)

②

Promotion of financial digitalization

Table 8 provides the breakdown of systems-related expenses by purpose of Japanese and U.S.
financial institutions in 2014. Meanwhile, Table 9 indicates the breakdown of systems-related
expenses by purpose of Japanese financial institutions in 2019. The majority of systems
investment by Japanese financial institutions is for the maintenance and operation of legacy
systems (existing built systems), and investment in "change" (new development) remains at amuch lower level than in that in the U.S.

- 13 -

＜Table 8 Breakdown of systems-related expenses by purpose of Japanese and U.S. financial
institutions (2014)＞【Source】 U.S.：Technology Business Research
Japan: FISC, Survey on the Systematization of Operations at Financial Institutions, March 2014

＜Table 9 Breakdown of systems-related expenses for Japanese financial institutions bypurpose（2019）＞【Source】 FISC, Results of Survey on Financial Institutions in FY 2020, February 2021

Table 10 shows the annual amount of investment in FinTech companies from venture capital
firms, etc. in 2019. The amount of investment in Japan remains low compared to the U.S.,
the U.K., and other countries.

- 14 -

＜Table 10 Annual amount of investment in FinTech companies from venture capitals, etc.
（in millions of USD）

(2019)＞【Source】 Accenture, Research analysis on CB Insights data

Table 11 displays the status of cashless payments in the world's major countries. The
cashless payment ratio in Japan slightly increased from 21.4 percent in 2017 to 24.2 percent
in 2018 but is still low compared to Western countries.
＜Table 11 Status of cashless payments in the world's major countries (2018)＞【Source】The World Bank, Household final consumption expenditure , 2018 (Updated on December 19, 2019)
Calculated based on annual payments by non-cash means from the Redbook Statistics (2017) published by the
Bank for International Settlements (BIS). ※For China, the data is provided by Euromonitor International forreference.

③ Promotion of accumulation of finance-related players
Table 12 shows the trends in the number of asset managers. The number of asset managers
in Tokyo has been on the rise, but its growth rate is lower than that of Singapore and HongKong. The absolute number is also lower than that of other cities.

- 15 -

＜Table 12 Trends in the number of asset managers (by city: 2015 through 2020 (※)）＞(※) The latest figures available in or as of 2020 are shown.
(※)The numbers of companies in New York and London as of 2015 were not available, thus "N/A" is stated.
【Source】TMG made this graph based on documents of regulatory agency and industry group.

Table 13 shows the trends in the number of FinTech companies. Although the growth rate of
the number of FinTech companies in Tokyo is high, it lags behind other cities in terms ofabsolute numbers.
＜Table 13 Trends in the number of FinTech companies (by City: 2010 through 2020(※)）＞(※)The latest figures available in or as of 2020 are shown.
【Source】Crunchbase
https://www.crunchbase.com/search/organization.companies/9d1160ba180ddadf487c869dd737edb5- 16 -

Ⅲ Specific measures
In order for Tokyo to become a global financial city backed by the real economy, it is necessary
to build an investment chain that provides a smooth supply of funds based on the existence ofdiverse economic activities, companies, and projects.
In light of the international financial environment and challenges facing Tokyo, the keys tobuilding an investment chain are:
① Enrichment of green and other sustainable finance-related products and ESG projects
as "investment targets";② Promotion of financial digitalization as infrastructure; and③ Accumulation of players related to "funds intermediaries."
These areas need to be addressed in a focused manner.
To this end, the following three pillars are set forth and specific measures to be developed aredescribed in this chapter.
１．Establishment of a robust financial market that helps solve social issues～Promotion of the Tokyo Green Finance Initiative (TGFI)～
２．Digitalization of finance through the utilization of FinTech, etc.
３．Accumulation of asset managers and other diverse financial players
At the same time, as a basis for increasing the effectiveness of these measures, it is important
to be more proactive than ever in disseminating information (promotion) about the Vision andspecific measures both at home and abroad, which will be discussed in the next chapter(Chapter IV).

- 17 -

１

Establishment of a robust financial market that helps solve social issues～Promotion of the Tokyo Green Finance Initiative (TGFI)～

The global environment is reaching a major turning point, intensifying our sense ofurgency that we are approaching a "point of no return" where stability and resilience
will be irreversibly lost.



As countries around the world are making a major shift to drastically reduce theiremissions of CO2 and other greenhouse gases, ESG, comprising environmental (E),social (S), and governance (G) issues, could be a "game changer" that may significantly
change the shape of society and industry in the future.

In response to the growing interest of consumers and investors in climate change,
companies producing goods and services are expected to increasingly choose "places"
where they can create added value.

In this context, TMG is promoting "Sustainable Recovery", which aims for sustainableeconomic and social recovery with an eye toward the post-COVID-19 society, andconsiders environmental efforts as an investment in growth rather than a cost. TMG is
implementing measures such as "Carbon Half" by 2030 and "Zero Emission Tokyo"
strategy by 2050.



Efforts to transform Tokyo into a green city that would be selected by the rest of theworld require a large amount of funds. The development of green finance thatfacilitates the supply of domestic and international funds for such efforts and financethat supports the transition to a decarbonized society will help enhance Tokyo'spresence as a global financial city.



To this end, the Tokyo Green Finance Initiative (TGFI) will be vigorously promoted tocreate a virtuous cycle of the environment and the economy from Tokyo, and tosimultaneously promote the green transformation of the urban and financial systems,
thereby improving the QOL of Tokyo residents and realizing sustainable economic
growth.



While taking the lead in green (E) initiatives, for the development of sustainablefinance as a whole, TMG will expand efforts to other areas, such as social (S), whichaims to solve social issues, keeping in mind a wide range of finance forms such as
bonds, loans, and equity.

- 18 -

＜Direction of measures＞

Accelerating thedevelopment of Tokyo’s
green finance market① Development of an
information platform
on ESG-related
corporate initiatives,
etc.
② Support for green
bond issuers③ Leading the market
as an anchor issuer
and investor

Attracting market
players and supporting
business development

Sharing information andnurturing ESG expertise① Attracting andfostering green
finance-related asset
managers, etc.
② Encouraging green
finance among
SMEs③ Attracting
individual investors① Promotion of Tokyo's
advancedenvironmental policies
and dissemination of
the projects② Dissemination of
information oncompanies withsuperior
environmental
technologies andpromotion oftechnology
development③ Attracting andnurturing highlyskilled humanresources who will be
responsible forsustainable finance- 19 -

（１） Accelerating the development of Tokyo’s green finance market
The trend of incorporating ESG factors into their investment decisions andengagements by institutional investors and asset managers is accelerating, leading
to widespread calls for investee companies to further disclose ESG information. The
disclosure of accurate information can be an important factor to promote dialogue
between issuers and investors and to attract new issuers and investors to the Tokyo
market.



When issuing green bonds, issuers are required or recommended to obtain a review
by an external organization in relation to the evaluation and selection process ofprojects for which the proceeds are to be used, but this imposes a burden on issuersin terms of cost and procedures.

Many local governments are ramping up their efforts to address climate change
issues. Green bonds could be effectively used as one of the means to provide thenecessary funds for local governments to promote decarbonization efforts andprojects.

＜Major initiatives＞① Development of an information platform on ESG-related corporate initiatives, etc.
○ Disclose ESG-related information on companies, etc. held by TMG in a way that iseasy for everyone to use, while taking into account the moves by the government andJapan Exchange Group, Inc. (hereinafter "JPX") to establish an information
infrastructure and certification framework for green bonds.
○ Consider ways to effectively disclose information so that excellent real estate can beevaluated from the perspectives of decarbonization and energy conservation in termsof finance, as well as measures to promote green buildings, as more than 70 percent
of CO2 emissions in Tokyo come from buildings.
② Support for green bond issuers〇 Take measures to reduce the burden of external reviews, etc. that are required whenissuing green bonds, etc.
③ Leading the market as an anchor issuer and investor○ TMG will maintain and improve its presence as an issuer in the market by continuing
to issue green bonds and will establish a track record in social bonds to be issued fromFY2021.
○ TMG will share its accumulated knowledge and know-how on green bond issuancewith other local governments, etc., in order to stimulate the momentum of green bondissuance in Japan as a whole.
○ TMG will continue participating in financial and capital markets as an investor and- 20 -

will further grow its presence in order to further expand ESG investment in society
as a whole, for example by more actively taking into account non-financial factors
related to ESG when making investments.
○ TMG will investigate and study new financial methods such as impact investment tobuild a financial market that contributes to solving social issues.

- 21 -

（２） Attracting market players and supporting business development
In order to develop ESG finance and green finance, it is important to attract/develop
a wide range of related companies, including asset managers with expertise in thisfield and FinTech startups and highly specialized human resources.

With growing interest in the emissions of the entire supply chain, decarbonization
efforts will be a key factor for SMEs to continue to win orders from their business
partners. To encourage SMEs to take action, it is necessary to promote the greeningof bank loans, etc. in the field of indirect finance.



It is critical to offer ESG investment options to individual as well as institutional
investors; to bridge the gap between the approximately 1,900 trillion JPY in personal
financial assets and investments for the realization of a decarbonized society; and toensure shifts from savings to investment.

＜Major initiatives＞① Attracting and fostering green finance-related asset managers, etc.
○ Implement measures to reduce the burden of costs required for foreign financial
companies working on green finance to establish their business in Tokyo; assist
business matching with companies in Tokyo; and provide support for obtaining
financial licenses○ Enhance Tokyo's presence in the field of green finance by rewarding financial
businesses that promote ESG investment through the Tokyo Financial Award (ESG
Investment Category)○ Actively disseminate information on Tokyo's green finance initiatives throughseminars, etc., to enhance Tokyo's recognition as a center for green finance② Encouraging green finance among SMEs
○ Provide SMEs with information on global trends related to SDGs and ESG and thefinancing that supports these trends by holding seminars and workshops, thereby
encouraging SMEs to invest in decarbonization and to disclose ESG-related
information○ Collaborate with regional financial institutions to revitalize green loans for SMEs
○ Consider measures to support transitions by SMEs, taking into account the
government's guidelines on transition finance③ Attracting individual investors○ Develop an environment that facilitates the participation of investors in sustainablefinance, such as requesting the government to incorporate an ESG index into thereference index for Tsumitate NISA (Dollar-Cost Averaging NISA)○ Provide information on global trends related to SDGs and ESG in an easy-to- 22 -understand manner by holding seminars and symposiums to improve the financial
literacy of Tokyo residents- 23 -

（３）Sharing information and nurturing ESG expertiseIn response to the major crisis of climate change facing the world, it is essential toproactively disseminate information about the major policy of envisioning asustainable city in harmony with nature and strongly promoting the green
transformation of the entire city, as well as the various efforts of industry,
government, and academia to achieve this goal.

Providing investors and external evaluation bodies with information on efforts
toward decarbonization and excellent environmental technologies of companies inTokyo is important both for attracting foreign investment and as a growth strategy
for Tokyo.

To stimulate the green finance market, it is necessary to accumulate highly-skilled
financial professionals, who will be responsible for green finance in Tokyo, in addition
to attracting and nurturing foreign financial companies. This will require both efforts
to attract foreign talent and to train them in Japan.

＜Major initiatives＞① Promotion of Tokyo's advanced environmental policies and dissemination of projects○ Work on a number of projects that will lead to "Sustainable Recovery" and generatedemand for green financing○ In addition to the financial information provided to date, proactively disseminate
information on TMG's measures and projects for decarbonization to overseas markets
through Access to Tokyo, the Business Development Center TOKYO, and diplomatic
missions abroad○ Strengthen overseas promotion in cooperation with FCT and information
dissemination, including participating in English-language international conferences
and seminars by utilizing AI translation technology, etc.
② Dissemination of information on companies with excellent environmental technologies
and promotion of technology development○ Disseminate information on companies with excellent technologies through trade
fairs and exhibitions of Green-Tech; and support the growth of SMEs and startups
with excellent technologies and ideas in cooperation with the "Startup Ecosystem
Tokyo Consortium"○ Promote approaches from the procurement side, such as adopting excellent
technologies and products at administrative sites, and provide startup companies
with opportunities for demonstration experiments to build their track records③ Attracting and nurturing highly-skilled human resources who will be responsible forsustainable finance- 24 -

○ Improve the business and living environment for attracting highly-skilled andexperienced financial professionals to Tokyo○ Nurture highly-skilled financial professionals with perspectives in the field ofsustainable finance by collaborating with universities and research institutes in Tokyo,
such as by utilizing the finance programs, seminars, and symposiums at the Graduate
School of Business at Tokyo Metropolitan University- 25 -

２

Digitalization of finance through the utilization of FinTech, etc.



The recent remarkable progress in digital technology is expected to accelerate thetrend of digital transformation to a greater extent than ever before. In addition, in apost COVID-19 society, demand for shifts to "non-face-to-face" and "contactless"services is expected to increase.

Amid significant changes in the economic structure driven by the wave ofdigitalization, the financial industry also has to respond to these major trends.

The progress of digitalization has facilitated the convergence of the "financial" and"non-financial" sectors, diversifying the players in the financial business. It is
important to develop support measures and an environment to encourage theactivities of FinTech companies and startups that can play a major role indigitalization.



The digitalization of the "funds intermediaries" that mediate between investors andinvestees through utilizing FinTech will help to strengthen the smooth flow of funds,or the "investment chain."

In addition, promoting cashless payments in an entire society will prompt the creation,collection, and use of data on economic activities involving payments, which can be adriver for the creation of new financial services using such data.



It is vital to respond appropriately to these trends toward digitalization, to enhance
the service level, to create innovative new services, and to improve the quality of life
for Tokyo residents.

- 26 -

＜Direction of measures＞
Attraction,
establishment, andgrowth support for
FinTech companies

Promotion ofdigitalization of funds
intermediaries

Promotion of cashless
payments① Attraction ofoverseas FinTech
companies andsupport for theirestablishment② Growth support for
FinTech companies③ Creation of business
opportunities for
FinTech companies① Promotion of datautilization by asset
managers, etc.
② Development of afully digitalizedbusiness
environment③ Promotion ofcollaboration
between financial
institutions and
FinTech companies① Promotion of
cashless payments to
private businesses,
etc.
② Promotion of
cashless system inthe metropolitan
government③ Study on the use of
new digitaltechnologies- 27 -

（１） Attraction, establishment, and growth support for FinTech companies

The accumulation and fostering of FinTech companies are essential for Tokyo to
become a world-leading global financial city. It is also an important initiative toimprove the convenience of life for Tokyo residents and the people of Japan, as wellas to revitalize industries.



It is necessary to provide seamless support to meet the various needs of FinTech
companies at each stage of their expansion, from the establishment of a domestic
base for FinTech companies invited from overseas to the full-scale expansion of theirbusiness, and from the startup of FinTech companies in Japan to the full-scale
development of their business.

When considering support measures, care should be taken to ensure that domestic
businesses and those invited from abroad enjoy equal treatment.

＜Major initiatives＞① Attraction, establishment, and growth support for foreign FinTech companies○ Provide support to attract overseas FinTech companies by reducing their burden of
initial costs required to establish a base in Tokyo, including costs for strengthening
business infrastructure, such as consulting fees for specialized institutions and officerent○ Business Development Center TOKYO (Financial One-Stop Support Service)provides comprehensive consulting services, including various consultations andreferrals to financial experts such as lawyers and accountants○ Promote business expansion into Tokyo by enhancing descriptions of FinTech-related
licenses in English manuals on financial license registration procedures② Growth support for FinTech companies○ Offer mentoring services, such as business plan preparation support, to thecompanies that pass the first-stage screening in the Financial Innovation Categoryof the Tokyo Financial Award○ Establish a fund sponsored by TMG to support FinTech companies supported by TMG
and offer financial and managerial support to FinTech startups with innovativetechnologies and services③ Creation of business opportunities for FinTech companies○ Support the promotion of FinTech companies by encouraging them to take advantage
of opportunities to introduce their businesses at events hosted by overseas cities○ Create business opportunities for FinTech companies by promoting interactions- 28 -

between domestic companies and FinTech companies, and between FinTech
companies in cooperation with FinTech industry associations and facilities
accommodating startups- 29 -

（２） Promotion of digitalization of funds intermediariesThe digitalization of "funds intermediaries", such as asset managers andfinancial institutions, is expected to lower operating costs, which in turn willlead to lower investment-related costs for investors. It is also expected to help
develop new methods of funds intermediation and ensure the resilience andsecurity of the system.



Although the Financial Services Agency (FSA) and the Bank of Japan (BOJ)
have been promoting the development of online procedures for applications forfinancial licenses and various reports and notifications to regulatory
authorities, there remain some procedures that should be completed on paper.
Further improvements need to be made to the business environment so theseprocedures can be completed digitally.

While advanced financial services are being developed and provided by FinTech
companies due to the widespread use of smartphones, the use of these services
by financial institutions has not yet progressed sufficiently, and further
collaboration needs to be promoted.

＜Major initiatives＞① Promotion of data utilization by asset managers, etc.
○ Spread and raise awareness of the trends of digitalization in financial services, theimportance of data utilization, and the promotion of the use of alternative data, with aview to the stable growth of asset managers, etc. as "funds intermediaries"② Development of a fully digitalized business environment〇 Make requests to the relevant organizations to promote further digitalization of
applications for financial licenses and various reports○ At the same time, make requests to allow for applications in English③ Promotion of collaboration between financial institutions and FinTech companies○ Host pitch events in cooperation with industry associations, incubation facilities, etc.,
as a place for matching between financial institutions and FinTech companies○

Promote the creation of new services in collaboration with financial institutions
through the TMG-invested funds- 30 -

（３） Promotion of cashless payments


The advancement of cashless payments in society will help enhance convenience forTokyo residents and the productivity of SMEs and other businesses, and may also
become a driver for the creation of new financial services using payment data, etc.

Cashless payments should be promoted in TMG, for instance at the facilities of theTokyo Metropolitan Government Building and other facilities for the use of Tokyo
residents with the aim of increasing user convenience and improving theadministrative efficiency.

In addition to promoting cashless payments, it is necessary to conduct research andstudies on the use of new digital technologies.

＜Major initiatives＞① Promotion of cashless payments to private businesses, etc.
○ Understand the current status and challenges of cashless payments in Tokyo andthen study measures for promotion of cashless payments from various perspectives,
including the contribution to revitalization of the domestic FinTech market② Promotion of cashless system in the metropolitan government○ Promote cashless payments at all TMG’s facilities to accelerate the realization ofdigital government, improve the QOS of TMG, and enhance the QOL of Tokyo
residents○ Promote cashless tax payments for metropolitan taxes in order to enhance
convenience for taxpayers and the efficiency of internal administrative work
③ Study the use of new digital technologies○ Research and study the trends and potential applications of new technologies such as
blockchain and distributed ledger technology- 31 -

３ Accumulation of asset managers and other diverse financial
playersDespite the major trend of digitalization, the physical accumulation of companies andhuman resources will continue to be an important factor in terms of competitiveness asa global financial city. The concentration of highly-skilled financial professionals
attracts investment funds and information from all over the world and will lead to thecreation of new services through collaboration among companies.



Currently, the accumulation of diverse finance-related players, including asset
managers and FinTech companies, is not sufficient compared to other major global
financial cities such as New York and London.

With regard to asset managers and FinTech companies, which are important elementsof a global financial city, efforts need to be made to attract foreign companies and tosupport entrepreneurship and growth in Japan.



It is also necessary to focus on peripheral industries related to the business developmentof asset managers, such as data centers, settlement, information security, and research
institutes.

To attract foreign financial companies, it is important to continue to focus on reviewing
taxation systems and regulations. At the same time, efforts should be made to nurturefinancial professionals and enhance the financial literacy of Tokyo residents because
human resources with high-level financial knowledge and the existence of huge assets
under management that can serve as a source of profit are decisive factors for businesses
expanding into Tokyo.

Furthermore, to attract foreign financial companies to Tokyo, TMG needs to work moreclosely with the national government and related organizations due to the need toreview various systems and effectively disseminate information to overseas markets.

＜Direction of measures＞
Promoting the attractionof asset managers, etc.

Establishment andgrowth support for asset
managers

Development of financial
professionals andimprovement of financial
literacy

Development of an
attractive businessenvironment② Development of an
attractive living
environment③ Attraction of foreign
financial companies
and personnel① Support forestablishing asset
managers② Nurturing of asset
managers anddevelopment of their
management base
③ Creation of business
opportunities for
asset managers① Nurturing of highlyskilled financial
professionals, etc.
② Development of
TMG's employeeswith expertise ininternational finance③ Enhancing thefinancial literacy ofTokyo residents①- 32 -

（１） Promoting the attraction of asset managers, etc. (including FinTech companies, etc.;
the same shall apply hereinafter)An attractive business environment is crucial in promoting the attraction of foreigncompanies to accumulate asset managers, etc.



The key elements of attractive business environment for foreign companies include,in addition to the tax burden reduction and regulatory review that have been focusedon to date, promoting the listing of foreign companies on the Tokyo market andcreating an environment to facilitate international arbitration in the event of legal
disputes.

Furthermore, it is essential to improve Tokyo’s living environment, such as medicalcare and education, including for accompanying family members. In particular,
various measures should be taken to improve the educational environment, which isemphasized by highly-skilled financial professionals.



Information should be disseminated effectively so that the development of suchbusiness and living environments as well as various types of incentive measures reachtarget companies for attraction.

＜Major initiatives＞①

Development of an attractive business environment○ Understand the needs of related parties and make requests to the national
government for necessary revisions of taxation and regulations○ Update the “English Guide to Financial License Registration Procedures” every year
in response to government system revisions, etc., and disseminate it in cooperation
with overseas diplomatic missions, JETRO, etc.
○ Promote fund-raising (stock listings and JDRs) by foreign companies (including
Japanese corporations established by foreign companies to raise funds) at the Tokyo
Stock Exchange in cooperation with JPX etc.
○ Disseminate information on the attractiveness of Tokyo as a location for international
arbitration and hearings, both domestically and internationally, in light of the
opening of the Japan International Dispute Resolution Center (JIDRC) in 2020②

Development of an attractive living environment○ Take concrete measures such as inviting new schools and disseminating information
on existing schools to further improve the situation of international schools in Tokyo○ Make requests to the national government to promote the development ofmultilingual service apartments and medical facilities by utilizing the National
Strategic Special Zone system, and to review regulations on the status of residence,such as easing the requirements for domestic helpers and parents accompanying
highly-skilled personnel.
- 33 -

○ Continue to urge the national government to create special exceptions for the
residency of same-sex partners to accelerate the entry of foreign companies in thefinancial sector, etc. by promoting the acceptance of highly-skilled foreign
professionals, including those from LGBT community.
③

Attraction of foreign financial companies and personnel○ Strengthen the dissemination of TMG's incentive measures and the latest
information on the Tokyo market through Access to Tokyo and the Business
Development Center TOKYO; and expand the website where foreign financial
companies and human resources can collect various information in a one-stop manner○ Support the smooth acquisition of licenses by foreign financial companies throughcooperation between the "Financial One-Stop Support Service" of TMG and the"Financial Market Entry Office" established by the FSA- 34 -

（２） Establishment and growth support for asset managers
 Entry of new financial players into the Tokyo market needs to be encouraged so that
quality financial services and products can be offered to Tokyo residents. In
particular, it is important to promote the entry of asset managers that play animportant role in building stable assets for the people and supplying risk money to
growing industries.
 The heavy burden of middle and back-office work is an issue for asset managers
during their start-up period, and measures to reduce this burden need to be
implemented in order to attract and foster asset managers.
 For overseas asset managers who do not have a track record in Japan, lack ofmatching opportunities with domestic institutional investors is one of the challenges
they face in deciding on their expansion into Tokyo.
＜Major initiatives＞① Support for establishing asset managers〇 Operate the "Tokyo One-Stop Business Establishment Center" jointly with the national
government to provide an integrated service for various procedures necessary toestablish a corporation and start a business.
〇

Provide businesses planning to start asset management services with expert
information and advice on licensing, business start-up procedures, etc.; and offer
support for smooth business start-up by holding seminars where advice can beobtained from those with start-up experience, etc.

② Nurturing of asset managers and development of their management base
〇 Promote the Emerging Managers Program (EMP) to support the establishment anddevelopment of asset managers〇 Strengthen the management base of asset managers by providing subsidies foroutsourcing middle and back office operations, etc. so they can focus their
management resources on investment management; and for that purpose, strive tocreate an environment in which Tokyo residents can feel secure in their investment,such as by requesting the adoption of the "Principles for Customer-first Business
Practices" set forth by the Financial Services Agency.
〇 Conduct hearings, etc. to collect opinions from financial institutions contributing funds
to asset managers and use them to establish a system of asset managers③ Creation of business opportunities for asset managers〇 Hold seminars for information exchange and matching between asset managers athome and abroad and institutional investors- 35 -

〇 Create business opportunities by, for example, adding the perspective of fostering
emerging asset managers when soliciting managers for funds invested by TMG- 36 -

（３） Development of financial professionals and improvement of financial literacyFor sustainable growth of Tokyo as a global financial city, it is necessary to attractand nurture financial companies, as well as to develop highly-skilled financial
professionals who have knowledge of sustainable finance and cross-bordertransactions.



It is also essential to develop experts in the fields, such as data science, legal affairs,
and compliance, who can cope with the progress of digitalization, revisions in laws
and regulations etc.



TMG also needs to develop employees who are well versed in the practices andsystems of international finance in order to steadily promote the measures set forthin the "Vision" in cooperation with relevant parties.



Efforts should be made to enhance the financial literacy of Tokyo residents andensure shifts from "savings to investment" with a view to building stable household
financial assets and revitalizing the financial market.

＜Major initiatives＞①

Nurturing of highly-skilled financial professionals, etc.
○ Nurture highly-skilled financial professionals with perspectives in the field ofsustainable finance by collaborating with universities and research institutes inTokyo, for instance by utilizing the finance programs, seminars, and symposiums at
the Graduate School of Business at Tokyo Metropolitan University○ Consider measures to develop data scientists who support advanced financial
specialists and human resources for legal and compliance affairs related to finance,in cooperation with Tokyo Metropolitan University, etc.

②Development of TMG's employees with expertise in international finance○ Develop personnel well versed in international finance in a planned manner by
dispatching TMG employees to the national government (Financial Services Agency)
and to institutions related to international finance (City of London, domestic andinternational financial institutions)③

Enhancing the financial literacy of Tokyo residents○ Hold financial seminars for Tokyo residents during the "Tokyo Sustainable FinanceWeek (TSFW)" to raise their awareness of sustainable finance○ Compile brochures for high school teachers describing financial education in civics
and home economics classes, including examples of lesson plans and teaching tips
○ Conduct a basic course on asset building for Tokyo residents at the Open Universityof Tokyo Metropolitan University○ Implement measures to promote the spread of Tsumitate NISA (Dollar-Cost- 37 -

Averaging NISA) and iDeCo in cooperation with the national government- 38 -

Ⅳ Dissemination of information on each initiative (promotion)

To become a world's leading " global financial city," it is important to work closely with
FCT, the Japan External Trade Organization (JETRO), and other overseas financial
promotion organizations to provide broad and strategic information on theattractiveness of Tokyo as a city, as well as on TMG's specific support measures.



In addition, there are companies in Tokyo that have excellent technologies andproducts but have difficulty in disseminating such information in English due tohuman resource and financial constraints, making them "hidden gems." The initiative
to support the dissemination of information on these companies in English will help
attract investment to Tokyo.

It is also vital to establish a system to facilitate foreign financial companies andpersonnel considering entering the Tokyo market to obtain information on various
support measures in an integrated manner.

＜Major initiatives＞①

Disseminating the attractiveness of “Global Financial City: Tokyo”○ Encourage promotional activities targeting both domestic and overseas markets incooperation with FCT, the Japan External Trade Organization (JETRO), etc.
○ Promote the attractiveness of Tokyo and its business environment by utilizing
Business Development Center TOKYO Hong Kong Office, which opened in 2020 as abase to prompt companies in Hong Kong and other Asian countries to enter the Tokyo
market○ Disseminate information on the attractiveness of Tokyo and business opportunities
from the perspective of third parties, such as experts and celebrities active in thefinancial sector and the foreign business community stationed in Japan.
○ Select content and media to disseminate information so that the necessary information
can reach the target audience. SNS and videos will also be actively used for
information dissemination.

② Support for companies to disseminate information in English○ Provide support such as advice on English information disclosure and translation of IR
materials into English for companies that have excellent technologies and products but
have difficulty in disseminating information in English in cooperation with the FCT.
③ Improvement of information accessibility for foreign financial companies and personnel- 39 -

○ Enhance the quality and quantity of information dissemination through Access toTokyo and the Business Development Center TOKYO○ Develop a website to enable users to collect various support information in a one-stopmanner- 40 -

Ⅴ Structure to realize the contents of the “Global Financial City: Tokyo” Vision（１） Positioning of FCT and the division of roles with TMG
Financial promotion activities are indispensable for enhancing Tokyo's attractiveness as afinancial market and making it a world-class global financial city; and knowledge and knowhow of the private sector are essential for this promotion. For this reason, FCT was establishedin April 2019 as the Japan's first public-private partnership financial promotion organization
with the participation of a wide range of financial professionals from the private sector.

Number of members（As of June 30, 2021）

49

The main activities of FCT comprise: ①“Information dissemination to promote theattractiveness of the “Global Financial City: Tokyo”; ② Collaboration with overseas financial
promotion organizations; ③ Support for establishing a base of and attracting foreign financial
companies; and ④ Policy recommendation to related organizations.
With regard to ① "Information dissemination to promote the attractiveness of the "Global
Financial City: Tokyo", efforts are being made to raise awareness about Tokyo as a global
financial city and communicate its attractiveness through holding seminars and roundtables,
participating in conferences, and making individual visits to major cities in Japan andoverseas.
- 41 -

Concerning ② "Collaboration with overseas financial promotion organizations", the foundationfor overseas collaboration has been laid through the conclusion of a Memorandum ofUnderstanding (MoU) with Paris EUROPLACE, participation in the World Alliance ofInternational Financial Centers (WAIFC), etc.
Regarding ③ "Support for establishing a base of and attracting foreign financial companies",
relationship managers for attracting foreign financial companies have been assigned to follow
up on companies that have participated in various events but not yet entered the market. In
addition, TMG supports the establishment of a network of companies that have entered themarket and holds regular meetings jointly with the Business Development Center TOKYO(Financial One-Stop Support Service), etc. to introduce and follow up on companies that areconsidering entering the market.
As for ④ "Policy recommendation to related organizations", FCT aims to optimize a system
by encouraging the national government, TMG, and industry organizations to consider theneeds of foreign financial companies and human resources.
Given that FCT was established and is engaged in activities aimed at utilizing private-sector
knowledge and know-how, it is important to position FCT as a "partner that contributes to therealization of the "Global Financial City: Tokyo" by utilizing the knowledge and know-how of
the private sector and collaborating with TMG as an administrative entity.
TMG and FCT’s basic roles as follows:① FCT takes the lead among the private sector in promoting initiatives that require the useof private-sector knowledge and expertise, such as financial promotion and eliciting theopinions of finance-related industries.
② TMG carries out projects that should be undertaken by government, such as policy
formulation and supplementary market functions (e.g., formulation of the “Vision”,
establishment of subsidies, investment in funds to attract private capital, etc.)
TMG and FCT will accelerate their efforts to realize the "Global Financial City: Tokyo" byleveraging their respective strengths (private-sector knowledge and mobility of FCT,
supplementary market functions of TMG, etc.) and working closely and cooperatively under anappropriate division of roles.

- 42 -

（２）Public-private partnership to realize the "Vision"

In order to implement the specific measures described in Ⅲ and to advance the promotional
efforts provided in Ⅳ, collaboration with various stakeholders is essential, including the
Financial Services Agency/other government agencies, FCT, the financial industry/otherprivate businesses, universities/ research institutions, and the City of London.
In January 2021, the national government launched the "Financial Market Entry Office" toprovide one-stop services in English for foreign asset managers entering the Japanese market,
such as consultation and procedures for registration. In addition, the government has beenenhancing provision of services in English by introducing AI-powered voice and texttranslation service. TMG will deepen cooperation between the Business Development Center
TOKYO and the "Financial Market Entry Office" of the national government to develop sucha business environment and will urge the national government to make necessary
amendments to the system in order to create an environment where highly-skilled foreign
financial professionals can live comfortably. Moreover, TMG will collaborate with thegovernment and JPX's efforts to improve the environment for the promotion of sustainablefinance (e.g., enhancing corporate information disclosure and fulfilling market functions).
TMG will collaborate with the City of London, a local government that serves as the hub ofLondon's financial functions, with which TMG signed an MoU (agreement) in December 2017,
in organizing events and seminars for the financial sector, financial education programs,
promotion of green finance, etc.

- 43 -

Ⅵ KPIs to be achieved by 2025 and 2030
In promoting this "Vision", Key Performance Indicators (KPIs) will be used for target
management.
TMG has set a long-term goal for 2030 and an intermediate goal for 2025 to achieve the longterm goal, and will strive to deepen its efforts while monitoring the degree of achievement.
Specifically, in addition to the goals for the three pillars stated in III, calculations will be madeon the ripple effects that the revitalization of the financial industry through the promotion of
the Vision will have on the Tokyo economy.
Field① Establishmentof a robust
financialmarket thathelps solve
social issues② Digitalizationof finance③ Accumulationof players
Ripple effects offinancial
revitalization on
industries in Tokyo

Item

2020
(Rerefence)

2025

2030

Ratio of outstanding
sustainable investments
through Japaneseinstitutional investors to theglobal total

8.1％

10％

15%

Amount of green bondissuance publicly offered inJapan

0.8 trillion
JPY

1.6
trillionJPY

3 trillion
JPY

Survey results on Tokyo
residents' interest in green
finance

Interest in ESG investment(% of respondents who answered "Yes")

11.5％(Privatesurvey・
WholeCountry)

30％

50%

Number of FinTech companies
in Tokyo94
companies

200
400
companies companies

Ratio of cashless payments in
Tokyo

21.6％
(2014)

Number of asset managers in
Tokyo

374
companies

600
900
companies companies

Number of FinTech companies
in Tokyo (reposted))

94
companies

200
400
companies companies

Effect of boosting GDP in
Tokyo(Cumulative amountcompared to FY2019)※

108 trillion
JPY (2019)

5 trillion
JPY
increase50％

80%

10 trillion
JPY
increase（※）Set KPIs relate to the ripple effects of financial revitalization on the Tokyo economy on a trial basis.
Estimated through the effect of boosting Tokyo's GDP based on the balance of funds under management byfinancial institutions, the balance of funds raised by non-financial private corporations, etc.

- 44 -

The Global Financial Centres Index (GFCI) will be used as information for reference toconfirm the major trends in international positioning, given that the specific basis forcalculating scores is not disclosed.

- 45 -

≪COLUMN≫ About the Global Financial Centres Index (GFCI)・The Global Financial Centers Index (GFCI) is the only current indicator of a city's global
status as a global financial city, which is compiled twice a year (March and September)by the Z/Yen Group, a British think tank, jointly with the China Development Institute(CDI).
・ In ranking cities, scores are calculated by combining statistical data (quantitative
information) and the results of a questionnaire survey of global financial experts(qualitative information), but the specific basis for calculating scores is not disclosed.

Ranking of Global Financial Centers

Trends in Scores for the Most Recent Top 9 Global Financial Centers- 46 -

Ⅶ Conclusion
TMG formulated the "Global Financial City: Tokyo" Vision in November 2017 and has been
making steady progress in developing a multifaceted approach in cooperation with the national
government and related organizations to make Tokyo once again a world-class global financial
city on par with New York and London.
For the revised "Vision" in light of the recent drastic changes in the world situation, TMG willcontinue to work closely with the national government and other related parties to promotethese initiatives with speed focusing on the three pillars of "Promotion of green finance","Financial digitalization", "Accumulation of diverse finance-related players", and effectively
disseminate information (promotion) on these initiatives.
It is not difficult to envision that the global environment surrounding the financial sector willchange even more drastically in the future.
The measures contained in the "Vision" are the ones that are deemed necessary at present, but
TMG will respond flexibly by reviewing and upgrading them and adding new measures in
response to future changes in the global environment and the circumstances surrounding thefinancial sector.
TMG will work with a sense of urgency that "now is the last chance" to realize the "Global
Financial City: Tokyo" as a world leader, so as to overcome the fierce competition with other
cities.

- 47 -

- 48 -

https://www.seisakukikaku.metro.tokyo.lg.jp/pgs/2021/07/images/TGFI_overview.pdf

Tokyo Green Finance Initiative (TGFI): Proposals for Developing Green Finance (Overview)【Reference①】Tokyo Green Finance Initiative (TGFI): Proposals for Developing

Green Finance (Overview)【Reference②】Key points in the revision of the "Global Financial City: Tokyo"
Vision- 49 -

【Reference】 Glossary
Terms

Description
This is an overseas contact point for TMG's activities toattract foreign companies to Tokyo. The consultation desks
are located in four locations: London, Paris, San Francisco,and Singapore. In addition to handling inquiries from

Access to Tokyo

foreign companies interested in setting up operations inTokyo and obtaining information on the Japanese market,
Access to Tokyo collects and disseminates information
related to the projects to attract foreign companies toTokyo, in cooperation with "hub organizations" such as
government agencies and industry associations in eachcountry.
ESG stands for E (Environment), S (Social), and G(Governance). The world is faced with issues such as thedisparity between the rich and the poor, increasingly
borderless global environmental problems, and various
challenges associated with the globalization of corporate

ESG investment

management. Given this background, the United Nations
advocated its view that it would be desirable to invest incompanies from the perspective of long-term profit increase
rather than short-term, as well as from the perspective ofESG, which contributes to the creation of a sustainableinternational society. The movement to make investment
focused on ESG is spreading around the world.
JIDRC was established to become one of the centers forinternational arbitration and mediation promotion in Japanin the private sector, based upon the interim report of the“Liaison Conference of Relevant Ministries and Agencies
Toward Invigoration of International Arbitration” of theJapan International
Dispute Resolution Center(JIDRC)Japanese Government. JIDRC operates facilities forarbitration and mediation hearings, trains professionals
such as arbitrators and mediators, and conducts public
relations and awareness-raising activities for corporations
and legal professionals in Japan and abroad.

- 50 -

TermsDescription
Impact investment refers to a type of investment incompanies, organizations, and funds with the intention ofgenerating social and environmental impact and financial
return at the same time. It has become increasingly
difficult to solve ever-more complex and diversified social

Impact investment

issues such as aging society with low birthrate, financial
disparity, threat of infectious diseases, etc., solely throughfiscal expenditure by the government. Given this situation,
impact investment has become a focus of attention as a new
financial trend that utilizes private capital as part of thesources of funding.

Investment chain

Investment capital flows from customers/beneficiaries toinvestee companies
Alternative data is a general term for a variety of data
used for economic analysis and investment decisions that

Alternative data

are not publicly available, such as corporate financial
information, etc. POS sales information and SNS text
information fall under this category.

Carbon Half is a statement made at the Davos Agenda
Meeting on January 27, 2021 that Tokyo will reduce
Carbon Halfgreenhouse gas emissions by 50 percent from 2000 levels
and increase the usage of energy-saving electricity to 50
percent by 2030.

The ”Financial Market Entry Office” was established by the
Financial Services Agency and Local Finance Bureaus on
January 12, 2021. The Office handles all the regulatory
processes from pre-application consultation, registration, toFinancial Market Entry

supervision after the registration for newly entering asset

Officemanagement firms as a single point of contact, with allcommunications available in English. The Center also
supports the establishment of a Japanese base by foreign
financial companies, other than foreign asset managers, who
are newly entering the Japanese market.

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TermsDescription
Financial One-Stop Support Service was launched by TMG
on April 1, 2017. It provides foreign financial companies
considering establishing a base in Tokyo with supports for

Financial One-Stop
Support Service

administrative procedures, comprehensive consultation
service, etc. in cooperation with the Financial Market Entry
Office. The Financial Desk Consultant gives advice andintroduces appropriate financial experts and other experts
to foreign financial companies in accordance with thecontent of consultation.
Green finance refers to the provision of funds for "E" in
ESG finance, such as investment in renewable energy

Green financeprojects and reduction of greenhouse gas emissions among
others, which contribute to solving environmental
problems. In a broader sense, it can be used as synonymouswith sustainable finance.
Green bond is a type of bond issued by local governments

Green bondand corporations to raise funds needed for projects that
address climate change issues, such as greenhouse gas
reduction and environmental measures.
Sustainable finance is a concept that encompasses a wide

Sustainable financerange of funding modalities, such as sustainable loans andbonds, and various other financial services, as well as ESG
investments.
Sustainable recovery is a concept that extends the global

Sustainable recovery

trend of aiming for economic recovery while addressing theclimate crisis at the same time to the realization ofsustainable lifestyles for people as well as to environment.
A JDR is a beneficiary certificate for entrusted foreign

Japanese Depositary
Receipt (JDR)

securities issued in Japan by a beneficiary certificate-issuingtrust pursuant to the Trust Act. This mechanism wasestablished to facilitate transactions of foreign stocks, bonds,
and ETFs within Japan.

Emerging Managers
Program (EMP)

EMP stands for Emerging Managers Program, which
supports the development of young managers by identifying
and funding candidates who want to become asset managers.

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TermsDescription
The Startup Ecosystem Tokyo Consortium was establishedin January 2020 as a platform to promote the formation of astartup ecosystem and to provide support for the creationand growth of startups by industry, academia andgovernment, taking advantage of Tokyo's diverse industrial

Startup Ecosystem
Tokyo Consortium

clusters. In July 2020, the Consortium was certified as a"Global Startup City" by the Cabinet Office. The
membership comprises a wide range of actors from industry,
academia, and government, including corporations,
economic organizations, universities, research institutes,
venture capitalists, and local governments in wide-areacooperation.
Zero Emission Tokyo defines Tokyo as a city that contributes
to the world’s net-zero carbon emissions by 2050. TMG
announced the “Zero Emission Tokyo Strategy” in Decemberof 2019 to make it come true.

Zero Emission Tokyo

TMG will implement measures to mitigate and prevent
global warming and to adapt to already observed impacts ofglobal warming. In addition, TMG will address challenges
in all areas deriving from urban activities, including supply
chain activities.
TOSBEC was established in April 2015 by TMG incollaboration with the Cabinet Office.
This is the first initiative of its kind in Japan to integrate
the procedures that foreign companies, venture companies,

Tokyo One-StopBusiness
Establishment Center(TOSBEC)

etc. need to complete to establish a business. By providing
face-to-face and online support by staff members or
specialists who are familiar with administrative procedures,
TOSBEC quickly respond to various procedures required forthe establishment of a corporation or the start of business,
including certification of articles of incorporation, company
registration and notification of incorporation, taxes, social
security, and immigration. The Center also offers support
for electronic applications as well as interpretation andtranslation services in several languages.

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TermsDescription
The Tokyo Financial Award aims to improve convenience forTokyo residents and revitalize the financial industry by

Tokyo Financial

awarding businesses that develop and provide innovativeAward

financial products that lead to solving the needs andchallenges of Tokyo residents, and businesses promoting
ESG investment.

Tokyo Sustainable

TSFW is a major event week in which TMG holds events

Finance Week

related to sustainable finance and collaborates with other(TSFW)

related events held during the week.

Transition finance is a type of finance to support companies
that are considering measures to address climate change
Transition financerisks and are undertaking greenhouse gas reduction
initiatives (transition) in line with their long-term
strategies to achieve a decarbonized society.

Paris EUROPLACE is an organization that promotes theinternational development and promotion of the Parisfinancial market. The organization is composed of various
stakeholders in the financial industry, including issuers,
investors,
Paris EUROPLACE

banks,

financialintermediaries,

insurancecompanies, lawyers, accountants and consulting firms. It
makespolicyrecommendations

tostrengthen

thecompetitiveness of Paris as a financial city, develops overseas
road shows, and attracts domestic and foreign investors. It
also promotes entry of companies and conducts research andstudies to promote FinTech and sustainable finance.

The Business Development Center TOKYO offers foreigncompanies considering starting or expanding their businessin Tokyo with a total support package that covers all aspects
Businessfrom business through to lifestyle issues. For foreign

Development Centercompanies planning an expansion into the Special Zone for

TOKYO

Asian Headquarters in particular, the Center offers bothbusiness exchange support and specialized consulting
services and strongly backs the development of business inTokyo.
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TermsDescription
FinTech is a coined term for finance and technology andrefers to the movement of innovative financial services that

FinTechutilize digital and other advanced technologies to create
new businesses and change the flow of funds. Companies
engaged in this movement are called FinTech companies.
Blockchain/distributed ledger technology is a type oftechnology that allows network participants to share theBlockchain/same ledger data under a distributed structure. It has theDistributed ledger

potential to build an infrastructure that can operate 365

technology

days a year, 24 hours a day, without being affected by theoperating hours of specific computers, and is resistant toforgery and falsification.
WAIFC, headquartered in Brussels, is a non-profit

World Alliance ofInternational
Financial Centers（WAIFC）

organization founded in July 2018 with the aim ofpromoting communication, such as cooperation among
financial centers and sharing of know-how. As of June 2021,
it has a total of 20 members, including local governments
and promotional organizations working to develop andpromote financial centers.

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These translations are not official texts, since they are not officially translated and fixed,
and are not the finalized versions. The original and official text is the Japanese version.
These translations are courtesy translations, and are to be used solely as referencematerials to aid in the understanding of Japanese version.
The Tokyo Metropolitan Government is not responsible for the accuracy, reliability of thesetranslations, and not responsible for any consequences resulting from use of thesetranslations.

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