Initiatives by Life Insurers to Reinvigorate the Equity Market and Achieve a Sustainable Society through Asset Management ~Checking Corporate and Investor Awareness of the Impact of the Novel Coronavirus Pandemic, Carbon Neutrality and More~

April 15, 2022

The Life Insurance Association of Japan (hereinafter "LIAJ"; Chairman: Yukinori Takada (President of SUMITOMO LIFE INSURANCE COMPANY)) conducted a survey of companies (1,200 publicly listed companies) and investors (202 institutional investors in life insurance companies, etc.) regarding 2021 activities, aimed at reinvigorating the equity market and achieving a sustainable society as an effort to enhance enterprise value from the standpoint of shareholders and investors. The LIAJ hereby announces that it has published a report summarizing recommendations based on the results of the survey. This initiative has been carried out annually for 48 years since FY1974.

Key points of the FY2021 report are as follows:

  • 1. Impact of the spread of the novel coronavirus (COVID-19) (Report p.14, Recommendation ⑩
    • Approx. 60% of companies replied that the importance of ESG initiatives has increased due to the impact of the spread of COVID-19
    • An awareness gap existed between companies and investors regarding the impact on "business model transformation," which was selected by only approx. 20% of companies, but approx. 40% of investors said it will be viewed as an important initiative going forward
  • 2.Achieving carbon neutrality (Report p. 17, Recommendation ⑬)
    • Among both companies and investors, the percentage who said there was a "high likelihood" of achieving carbon neutrality by 2050 was only 10% or lower
  • 3.Expanding shareholder returns (Report p. 3, Recommendation ①)
    • Approx. 80% of investors are not fully satisfied with the standard of shareholder returns and dividends, this stance appears unchanged before and after the pandemic

Website: Results will be posted onhttps://www.seiho.or.jp/info/news/2022/20220415_4.html

The LIAJ has an awareness of achieving the SDGs targeted by the United Nations and is proactively advancing ESG investment and loans and efforts for stewardship activities to further display its role as a life insurance company investor.

This report is expected to aid in accelerating initiatives throughout Japan to achieve the SDGs through further development of Japan' equity market and efforts by companies, investors and others toward achieving a sustainable society. The LIAJ is contributing to the resolution of social issues in such ways as continuing and strengthening ESG investment and lending and stewardship activities.

Reports

  1. About Initiatives by Life Insurers to Reinvigorate the Equity Market and Achieve a Sustainable Society through Asset Management

    Reports on the Survey Results (in Japanese)

    Reports on the Survey Results (in English)

  2. About Detailed Survey Results on Approaches toward Enhancing Enterprise Values

    Comparison of Results between Companies and Investors (Only in Japanese)

    Questionnaire Survey Form for Companies (Only in Japanese)

    Questionnaire Survey Form for Investors (Only in Japanese)