The Evolution of ESG Investment, Realization of Society 5.0, and Achievement of SDGs

Overview
Chapter 1: Background of the Study•••

Society 5.0 for SDGs is a concept that transforms four megatrends into opportunities for
economic growth and problem-solving.
In order to achieve this, it is essential that medium- to long-term stable funding be channeled toa variety of players promoting problem-solving innovation, such as companies and universities,
and that the innovation ecosystem itself evolves autonomously.
Therefore, we identify the trend of now globally expanding ESG investment and further evolveit to accelerate investment in problem-solving innovation, in order to achieve the realization ofSociety 5.0 and the swift and reliable achievement of SDGs.

Chapter 2: Current Status of theUnderstanding of Society 5.0 andMeasures to Improve It
Explore the current state ofunderstanding of Society 5.0 andconsider measures to improve itPurpose•

Methodology

•
•

•
•

ResultChapter 3: Economic and Social Impacts

Purpose

Methodology

Questionnaire survey oncompanies and investors

Society 5.0

Estimate the economic and socialimpacts of Society 5.0 and clarifyitsbenefits＊

Mainly focusing on the positive
impact on society and the mediumto long-term growth of companies

Estimation by Nomura (2020)•Same survey + natural
language processing

Presentation of growth
opportunities in key industrial
Industrial sector(excerpt)

Discussion among the threeparties, etc.

Next-generation
healthcare
Digitization ofmanufacturing
Smart mobility
Smart living
Next-generationenergySociety 5.0 is lessrecognized than ESG/SDGs
Incorporating Society 5.0
into ESG investment will
have a variety of benefits,
including higher returns
and a broader scope forproblem-solving

Companies, universities, etc.
promoting Society 5.0

Result••Growthopportunities(2030)
36.2

Chapter 4: Direction of Information
Disclosure by Companies
Promoting Society 5.0

28.5

21.3
18.9

Estimated that if alltechnologies are implemented
in society, a growth opportunityof 250 trillion yen (nominalGDP: 900 trillion yen) would becreated in the economy as awhole•

Questionnaire survey oncompanies and investors +natural language processing

Methodology•(1) Collect long-term visions
and other information fromcompanies, and (2) collectinvestor evaluations of them.

•Examples of initiatives toimprove the investment
environment•

Role of each player•(1) and (2) are processed innatural language to extract thecontents of long-term vision, etc.
and expression methods
required by investors.

•Fundraisers: Inclusion ofSociety 5.0 in the integrated
report and other publications,promotion of the formation ofprojects, etc.

•Smart life, population structure,climate change, etc. ranked highas megatrends to be captured•

Concrete recommendations forthe promotion of investment
in universities and start-ups

3 elements of the long-termvision of highly rated companies(1) Business development
based on people(2) Solving global issues(3) Creation of new markets••

Universities: Identification of
key technologies contributing
to Society 5.0, etc.

•

Proposed recommendations ofinvestment methods forSociety 5.0•

Megatrend indices, integrated
management of DX and ESG
indices, etc.

ResultESG(Mainly focusing on the negative impacts onsociety and risk reduction)）

Purpose

Methodology

Cumulative investment needed
to realize Society 5.0 is 844
trillion yen over 15 years

Purpose Explore concrete
recommendations to improve
the investment environment torealize Society 5.0
Discussion among the threeparties, etc.

Explore the direction ofinformation disclosure bycompanies addressing Society 5.0

Purpose19.3

Chapter 5: Improvement of the Investment
Environment

Investors

ResultAction PlanSRI(Mainly focusing on compliancewith ethical standards)•* Nomura (2020): A report titled “Society 5.0 for SDGs — Creating Future
Economic Assessments” by Koji Nomura, Project Leader, the 21st Century
Public Policy Institute and Professor, Keio University

The three parties of Keidanren, the University of Tokyo, and the GPIF manifest their commitment toSociety 5.0 for SDGs, and as concrete measures for its realization, they will foster the formation ofprojects concerning Society 5.0, promote engagement, and form a social system for its realization.