The Bank of Japan (BOJ) launched a consultation on a potential market functioning survey on climate change activities. BOJ aims to assess the functioning of Japanese financial markets in relation to climate change, identify challenges for future developments, and share the results of that survey with relevant stakeholders. BOJ seeks to cover a broad set of market participants such as issuers, investors, financial institutions, and rating agencies in Japan. BOJ. The comment period on the consultation ends on January 31, 2021, with BOJ is seeking comments on the survey topics, the frequency of the survey, and the scope of survey respondents.
BOJ plans to conduct the first round of this annual survey in fiscal 2022, as soon as the necessary preparations have been completed, while taking into account the results of the public consultation. BOJ proposes the following survey topics:
- The way climate-related risks and opportunities are reflected in the prices of financial instruments in the stock market and the corporate bond market in Japan and associated challenges
- The current situation and challenges with respect to the "climate change-related ESG bond market" in Japan
- The use of "climate change-related ESG bonds" by issuers and investors in Japan and associated challenges
"Climate change-related ESG bonds" refers to green bonds, sustainability bonds, sustainability-linked bonds with performance targets related to efforts on climate change, and transition bonds that comply with corresponding international standards and/or the guidelines of the Japanese government.
Comment Due Date: January 31, 2022
Keywords: Asia Pacific, Japan, Banking, Securities, Climate Change Risk, ESG, Sustainable Finance, Green Bonds, BOJ
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
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