Paris headquartered asset management company La Française and London-based Inflection Point Capital Management – which specialises in responsible and long-term investment – signed the Japan Stewardship Code on 4 February.
The two European investment companies partnered in a joint venture asset management company, La Française Inflection Point (LFIP), in December 2013.
The Japanese Financial Services Agency (FSA) Code, launched in February 2014 and developed by a Japanese government convened expert committee, contains seven points concerning responsible investment.
Matthew Kiernan, founder and chief executive of IPCM, explained: “The Stewardship Code highlights remarkable vision by the Japanese government to pro-actively promote good governance, along with world class environmental and social practices, as a route to greater Japanese corporate success in a highly competitive global economy.”
The decision of La Française and IPCM committing to the seven point FSA Code comes ahead of the United Nations climate change summit taking place in Paris in late November 2015.
Xavier Lépine, chairman of La Française, commented: “We view the Japanese investment market and the influence of Japanese investors and companies around the world as a crucial component of 21st Century global economic vibrancy, financial stability and balanced growth.”
“Along with transparency and good governance there are a broad range of new challenges for global investors such as climate change, resource depletion, ecosystems destruction and human rights issues in corporate value chains. Both the new Japanese Code and the country’s diplomatic success in delivering the 1997 UN Kyoto Protocol on climate change mark Japan out as a forward-looking global force as we seek to balance economy and environment,” added Lépine.
Paul Clements-Hunt, who was a key backer of the UN principles for responsible investment in 2006 – now backed by institutions representing US$45trn in assets (€39.3trn), underlined: “La Française and IPCM signing Japan’s Stewardship Code sends the strongest of signals of just how important this development in Japan is for global investment markets.”
Clements-Hunt, who headed the United Nations Environment Programme Finance Initiative for 12 years, is an IPCM principal and director since 2012 and advises La Française on special global projects.
La Française and IPCM, which hosted a climate-investment focused dinner at the last World Economic Forum in Davos, will introduce their zero carbon investment approach and cutting edge work to engineer Green Real Estate Investment Trusts in Tokyo, on 10 February. Threats and opportunities for investors of global warming along with the greening of real estate assets will also be discussed during their week in Japan.