Mitsui Sumitomo Financial Group Co., Ltd. (CEO, executive director of Sumitomo Corporation), Sumitomo Corporation Four Japanese financial institutions, including the Japan policy and investment bank We have newly launched "Financial Alliance for nature positive solutions (FPS)" to promote and support the positive positive conversion of business activities in enterprises.

1.FPS

The FPS consists of members including the SMBC group, the MS & ad holdings, the Japan policy bank and the agriculture and forestry central bank, the Japan Research Institute, the MS & ad interrisk Research Institute, Inc., the Japan Institute of economic research, and the agriculture, forestry and Forestry Research Institute.

We also conclude a joint research agreement with the National Institute for environmental research, National Institute for research and development, and provide scientific advice on the study of natural positive solutions. In addition, we cooperate with researchers in the field of expertise related to ecology, and we will develop a place to accumulate knowledge about native positives in industry.

Members

Japan Research Institute

MS & ad Holdings Co., Ltd.

Institute for Japanese economy and investment

Agricultural and Forestry Research Institute

2.Background

In the "Kunming Montreal biodiversity framework" adopted in the United Nations Convention on biological diversity in December 2022, the concept of so-called "nature positive" was taken into consideration by "2030 by preventing the loss of biodiversity and going to the recovery trend". In addition to responding to climate change toward carbon neutral, companies need to tackle nature positive, such as relaxation of excessive reliance on nature and restoring ecosystem. Moreover, the information disclosure framework by tnfd is announced in September 2023, and it is assumed that the enterprise will accelerate further.

The relationship with nature in the business is diverse for each place and activity, and there is no uniform solution for nature positive. We need to think about the solution of natural characteristics for each place related to the business and supply chain, evaluate the impact, and think about the solution of how to lead to the native positive.

There are many ways to analyze, evaluate and respond to the solutions and natural related risks. Four global financial institutions have taken up such a global trend quickly and realized that joint research and research is essential to support firms' positive attitudes toward the nation and to create a domestic career.

2.Future development

In FPS, we will focus on the following themes in order to stop the loss of natural capital including biodiversity through business activities, and to focus on recovery.

(1) to investigate and analyze the nature positive solutions and to analyze the nature related risk analysis tools, tools, and solutions that contribute to the risk mitigation. Not only the nature related risks of the business site but also the supply chain are surveyed. Improvement of soil environment and water environment by water source recharge / environment regeneration type agriculture by wetland regeneration and rainwater infiltration

(2) we examine the financial model to support the implementation of the technology to reduce the impact on the natural environment and to implement the technology to regenerate and restore nature. Environmental impact bond / Biodiversity link loan / nature consideration loan.

The SMBC group, the MS & ad holdings, the Japan policy bank, and the agriculture and forestry central bank are aiming at creating specific solutions and financing to support the efforts of companies to tackle the corporate community.