SDG Impact Japan, Inc. (Bradley Busetto, Co-Chairman, Mari Kogiso, Co-Chairman; hereinafter “SIJ”) is pleased to announce that it has entered into a capital and business alliance agreement with Meiji Yasuda Life Insurance Company (Hideki Nagashima, President; hereinafter “Meiji Yasuda Life”), a leading life insurance company in Japan.
Through this alliance, SIJ will establish a broad strategic relationship with Meiji Yasuda Life Insurance in all areas of sustainability, and will support Meiji Yasuda Life Insurance’s promotion of sustainability management as well as reinforce its approach to responsible investment as an institutional investor.
1. Business alliance: key points
- Joint promotion and investment in innovative ESG funds:
Meiji Yasuda Life Insurance Company, its subsidiary Meiji Yasuda Asset Management, and SIJ will jointly research and establish innovative ESG funds based on global best practices.As a first step, in February 2022, Meiji Yasuda Life Insurance Company and its subsidiary Meiji Yasuda Asset Management Company will launch the first ESG engagement fund in Asia that is aligned with Article 9 of the SFDR* and focuses on social impact created through dialogue with portfolio companies. Meiji Yasuda Life Insurance plans to invest 5 billion yen in this fund.
- Advisory services on sustainability:
SIJ will support Meiji Yasuda Life Insurance to enhance its initiatives in responsible investment (ESG investment and financing, stewardship activities, etc.
- Talent Exchange:
Exchange of staff with the aim of sharing know-how on global best practices in the sustainability area, ESG fund formation and management, and engagement.
- Joint research on initiatives that contribute to local communities:
Joint research and implementation of initiatives that contribute to regional society in cooperation with local governments and regional banks, etc., such as support for SMEs’ efforts to achieve the SDGs by providing management tools that enable SMEs to analyze and evaluate their sustainability impact.
2. Details of the Capital Alliance
SIJ will issue new shares to Meiji Yasuda Life Insurance through a third-party allotment, and Meiji Yasuda Life Insurance will acquire the common shares. The shareholding ratio of Meiji Yasuda Life Insurance after the acquisition of shares will be 10%.
‘SFDR’ is the European Sustainable Finance Disclosure Regulation, which has been adopted by the European Commission in 2019 and partially applicable from March 2021. Article 9 states that, among other investment characteristics, when ESG characteristics are stated, in addition to stating ESG initiatives in the description of investment objectives and investment process, the investment must fall into one of the following categories: (1) impact investing, where sustainability is one of the investment objectives, or (2) investing, where carbon emission reduction is one of the investment objectives, and investment management. In addition, companies are required to set and disclose measurable targets in line with their investment objectives.
About Meiji Yasuda Life Insurance Company
Location of headquarters 1-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo
President Hideki Nagashima
Established July 9th, 1881
Business Life Insurance
About SDG Impact Japan
Location of headquarters 1-17, Toranomon 1-chome, Minato-ku, Tokyo
Co-CEO Bradley Busetto, Mari Kogiso
Established January 21st 2021
– Promotion of management of investment funds focused on SDGs
– Provision of impact assessment tools for financial institutions and corporations
– Advisory on sustainable finance