The keynote speech at the COC + R National Symposium was given by Kenji Fuma, CEO of Neural Co., Ltd. The theme was "What role should a local university play?"Based on a wealth of materials, we will develop the current situation of the world and Japan regarding ESG investment and the mission that universities will fulfill there, which can only be talked to Mr. Oma, who runs a sustainability management and ESG investment consulting company. He made it clear that economic change centered on ESG is just around the corner in Japan.
There is no bright future by relying on "ma-hi-shi"
I'm Kenji Fuma, CEO of Neural Co., Ltd.We will talk about local ESG, regional revitalization that is unique to the region, and the relationship with universities.Until now, regional revitalization has been promoted under the slogan of "town, people, and work."However, the time has come when the "ma-hi-shi" is completely toothless.Without a more global perspective, a bright future will not come, especially for local business owners.
Therefore, the keyword ESG (Environmental Social Governance) is now mainstream.It is synonymous with sustainability and overlaps with the goals set by the SDGs.And EGS is attracting attention as an indispensable element when talking about finance and economy in the future.
In this keynote speech, I will explain how EGS is connected to the development and production of human resources at universities.
Climate change destroys the world economy
When talking about EGS, let's first list the factors feared in the global business world.Extreme weather, loss of biodiversity, and environmental risks are the worst three.Extreme weather, in particular, has caused climate change, leading to elevated temperatures and causing major disasters.Frequent large typhoons, floods, landslides, wildfires ...With the damage of the Great East Japan Earthquake class occurring every year, the business community is becoming unable to tolerate the damage. It is predicted that sea level will rise by 3 meters in 2150.Overseas, urban development has come to be carried out with reference to the risk of frequent floods and the risk of rising sea levels, but in Japan, countermeasures against these have not been taken at the national level.
Climate change also leads to an increase in infectious diseases.Health risks with Zika virus, influenza, and the new coronavirus have led to economic stagnation.
ESG investments increase returns
Western financial authorities predict that climate change will cause a devastating financial crisis.Instead of relying solely on environment-related ministries, the financial authorities themselves have turned to a policy of investing in companies that promote ESG.And institutional investors place importance on whether the business partners of the investment target companies are also working on carbon neutrality.The criterion is whether or not ESG is promoted throughout the value chain.
The economy is shifting from a traditional short-term outlook to a long-term outlook based on society and the environment.However, there are certainly some who question whether investing in ESG-promoting companies really leads to higher returns.Therefore, when we scrutinized research treatises on ESG investment, about half of the treatises increased returns.On the other hand, about 10% of the papers were negative.Therefore, it can be said that ESG indexes are perceived as high returns. Investment trusts that select companies that are enthusiastic about ESG are also on sale.
Japan is behind, the challenge is
But what about the situation in Japan?As the population declines, Japan's workforce has been covered by women and the elderly for the past decade.The background is the social advancement of women and the rising employment rate of the elderly.However, that also reached a plateau, and from the 10s we entered an era of full-scale labor shortages.
In addition, Japan ranks 39th in the world human resources ranking, which looks at the quality of the labor force.It lags behind Hong Kong and Singapore in Asia.Examining where the challenges are, we find that the world rankings for education spending, women's workforce, international experience, and the competitiveness of university education are at the bottom.It can be said that the challenges of the educational environment are enormous.
Also, in the survey "Can I learn the skills I need in the future at my current place of employment?", Japan was at the bottom.There is no bright future unless the place of work itself is changed.
An example of moving forward little by little
Until now, ESG has been regarded only in the sense of social contribution such as CSR in Japan.The purpose is not to solve social issues, but to the extent that it can't be helped.However, now that the shift to ESG has become a global trend, it is necessary to raise profits and bring it to a good cycle by advancing ESG measures by raising funds.
Little by little, new movements have emerged in which local governments and regional financial institutions have collaborated.For example, Shiga Bank is working with other regional banks, prefectures, and Keizai Doyukai to promote sustainable development financing.The Norinchukin Bank is working to reduce CO2 emissions from its lenders in order to solve sustainability issues surrounding the agriculture, forestry and fisheries industry.Soccer J3 Renofa Yamaguchi FC has signed environmental agreements with each region in Yamaguchi Prefecture in collaboration with regional banks and local governments.
In this way, even if the central government office is conscious of "I have to do something", I feel that local companies have a strong feeling of "I have to move".
Universities become the core of local ESG
So how should we relate to ESG as a university?
The Ministry of the Environment has drawn up plans for regional financial institutions to lead to new regional economic activities through ESG investment.The existence of a university is important for the cooperation of local governments, regional companies, and regional financial institutions.University professors play a major role in managing difficult projects that are listed as solutions.As a diverse player in the community, I can meet and talk to people in the company.For example, if a university achieves the task of "zero carbon", it can spread to the surrounding area and lead the area to zero carbon.
The future will change if universities act as hubs for local ESG.Fostering and producing local human resources, and social implementation of the created innovation.Now that the consciousness of companies is changing, how universities think and how they work together has a big meaning.
