Background of the TCFD Summit

Toward realization of the positive cycle of environmental protection and economic growth, it is considered important to not only continue to encourage companies to be committed to TCFD disclosures and increase the number of supporters but also to encourage companies to improve the quality of disclosure as an effort to help investors make decisions and lead to discovery of business opportunities.

In October 2019, the world’s first TCFD Summit was held in Tokyo, bringing together global leaders of industrial and financial organizations. At the summit, participants agreed on key concepts on measures against climate change, including the "importance of engagement" and "importance of opportunity assessment." As of October 2019 when the first TCFD Summit was held, 863 organizations from around the world and 198 in Japan showed their support for the TCFD recommendations. Since then, the number of such organizations has grown to 1,472 worldwide, up by 609, and 311 in Japan, up by 113, as of October 20, 2020, which is an effect triggered by the summit.

The TCFD Summit 2021, which was the second one, presented discussions by leaders of industrial and financial organizations on approaches to facilitating use of the TCFD recommendations. In addition, the summit also presented sessions by practitioners for the purpose of establishing and developing the TCFD recommendations in practical matters. Through this summit, participants shared their awareness and knowledge on climate-related financial disclosures, and Japan sent a message to the world of its support for the TCFD recommendations.

Overview of the TCFD Summit 2021

Date: October 9 (Fri.), 2020
Meeting format: Online style
Organizer: METI
Co-organizers: The World Business Council for Sustainable Development (WBCSD) and the TCFD Consortium
Number of registered viewers: About 3,200


Welcome Message Suga Yoshihide (Prime Minister)
Kajiyama Hiroshi (Minister of Economy, Trade and Industry)
Opening Remark Valdis Dombrovskis (Executive Vice-President, European Commission)
Mary Schapiro (Head Of The TCFD Secretariat, Vice Chair For Global Public Policy At Bloomberg And Senior Adviser To The Founder)
Mary Schapiro (Head Of The TCFD Secretariat, Vice Chair For Global Public Policy At Bloomberg And Senior Adviser To The Founder)
Opening Session Peter Bakker (President & CEO, World Business Council for Sustainable Development (WBCSD))
Ito Kunio (Chair of the TCFD Consortium / Director of Hitotsubashi CFO Education and Research Center)
Miyazono Masataka (President, Government Pension Investment Fund (GPIF))
Laurence Fink (Chairman and Chief Executive Officer, BlackRock, Inc.)
Ronald P. O’Hanley (Chairman and Chief Executive Officer, State Street Corporation)
Sugimori Tsutomu (Vice Chair, Keidanren, Japan Business Federation / Representative Director, Chairman of the board, Group CEO, ENEOS Holdings, Inc.)
Mike Kanetsugu (Chairman, Japanese Bankers Association / President and CEO, MUFG Bank, Ltd.)
Negishi Akio (Chair, The Life Insurance Association of Japan / President, Representative Executive Officer and Group CEO, Meiji Yasuda Life Insurance Company)
Miyahara Koichiro (President and CEO, Tokyo Stock Exchange, Inc.)
Special Discussion
-ESG Investing and
the TCFD Disclosures
in the With
-Corona and Post-Corona Era-
Mizuno Hiromichi (Special Advisor, METI / TCFD Summit Ambassador)
Fiona Reynolds (CEO, PRI Association)
Marcie Frost (CEO, California Public Employees' Retirement System (CalPERS))
Ozeki Hiroshi (President and Chief Executive Officer, Nissay Asset Management Corporation)
Alan McLean (Executive Vice President, Tax and Controller, Royal Dutch Shell plc)
Aoki Jun (Executive Corporate Officer, Chief Social Value Creation Officer, Shiseido Company, Limited)
Panel Discussion 1
-Importance of
Evaluation based
on Materiality by Industry-
Nagamura Masaaki (Fellow, General Manager, International Initiatives, Corporate Planning Dept., Tokio Marine & Nichido Fire Insurance Co., Ltd.)
DavidDavid Parham (Director of Research, Sustainability Accounting Standards Board (SASB))
Oshida Shunsuke (Head of Credit Research, Japan, Manulife Investment Management (Japan) Limited)
Fiona Wild (Vice President, Sustainability and Climate Change, BHP)
Yamauchi Toshihiro (General Manager, Corporate Communications Dept., Sumitomo Chemical Co., Ltd.)
Panel Discussion 2
-Implementation of
Scenario Analysis
and Case Studies-
Tezuka Hiroyuki (Fellow, JFE Steel Corporation)
Didem Nisanci (Global Head of Public Policy, Bloomberg L.P. / TCFD Secretariat)
Iwanaga Yasunori (Chief Responsible Investment Officer, Amundi Japan Ltd.)
Shibukawa Atsushi (General Manager, Risk Governance Office, Risk Management Department, Mizuho Financial Group, Inc.)
Francesca Gostinelli (Head of Group Strategy, Economics and Scenario Planning, ENEL SpA)
Mizouchi Ryosuke (Senior Executive Officer, Kirin Holdings Company, Limited)
-Climate Innovation
Finance Strategy 2020-
Yamashita Ryuichi (Director General, Industrial Science and Technology Policy and Environmental Bureau, METI)
Panel Discussion 3
-Promoting Financing for
Transition Actions and
Environmental Innovations
by Using TCFD Disclosures-
Ito Kunio (Chair of the TCFD Consortium / Director of Hitotsubashi CFO Education and Research Center)
Shiomura Kenji (Senior Director, Investment Strategy Department, Government Pension Investment Fund (GPIF))
Takatsuki Yo (Head of ESG Research and Active Ownership, AXA Investment Managers)
Fujimura Takehiro (General Manager, Corporate Sustainability & CSR Department, Mitsubishi Corporation)
Ikeda Satoshi (Chief Sustainable Finance Officer, Strategy Development And Management Bureau, Financial Services Agency)
Kajikawa Fumihiro (Director, Environmental Economy Office, METI)
Closing Remarks Mizuno Hiromichi (Special Advisor, METI / TCFD Summit Ambassador)

Details of the discussions

Welcome Message

-Welcome message delivered by the Prime Minister of Japan-
Prime Minister Suga Yoshihide delivered the message that companies and investors around the world are shifting to business that position sustainability at its core. He also stated that Japan will create innovations that realize "Beyond-Zero", which is an approach to retroactively reducing the accumulated amount of CO2 emissions, and will present a picture of a positive cycle of environmental protection and economic growth, which will contribute to global decarbonization. Following this, he declared that the government of Japan will support TCFD as an effort for supporting companies engaging in solutions to climate change by taking advantage of the power of finance.

-Welcome message by METI Minister-
Mr. Kajiyama Hiroshi, Minister of Economy, Trade and Industry, proposed the importance of TCFD aligned with disclosures where efforts for transition to de/low carbonization and innovations for dramatic reduction of CO2 are taken them as "opportunities". He confirmed his expectations for the continuous promotion of TCFD disclosures through this summit in the next and following years. Moreover, he announced a list of 320 Companies Taking on the Zero-Emission Challenge, a compilation of companies boldly taking on efforts for innovations toward realization of a decarbonized society, as the first step of the Zero-Emission Challenge project.

Suga Yoshihideyoutube
Prime Minister
Kajiyama Hiroshiyoutube
Minister of Economy, Trade and Industry

Opening Remarks

-Message from Mr. Valdis Dombrovskis, Executive Vice-President, European Commission (EC)-
Mr. Dombrovskis stated that the TCFD recommendations are important as they provide authoritative guidance on how companies should report climate information and that the European Commission remains a firm supporter.

-Message from Mr. Mark Carney, Finance Adviser to the Prime Minister for COP26 and UN Special Envoy for Climate Action and Finance-
Mr. Carney stated his team will look for ways to make TCFD disclosure mandatory in different jurisdictions. In some countries that will be through legislation, in others it will be through securities disclosure standards, in others through accounting disclosures. He also stated that climate change should be taken into account in financial companies’ judgements as interest rates, credit risk and future cash flows are essential today. For this purpose, TCFD disclosures are regarded as the foundation of climate-related financial disclosures. He suggested that we should see how entities are managing climate related risk – where they see the opportunities, how they are governing the strategies and how they are putting them in place rather than simply making static disclosure.

- Message from Ms. Mary L. Schapiro, Head of the TCFD Secretariat -
Ms. Schapiro expressed her appreciation for the efforts by the TCFD Consortium as it plays great roles as the world’s largest body of TCFD supporters and it presents a model integrating financial and non-financial actors to work together to improve transparency. Moreover, she suggested that firms that neglect the long-term implications will not be able to compete successfully, while those looking ahead, setting net-zero emissions of carbon targets and developing products and services that support a more resilient future can thrive.

Valdis DombrovskisValdis Dombrovskisyoutube
Executive Vice-President, European Commission
Mark CarneyMark Carneyyoutube
Finance Adviser to the Prime Minister of the United Kingdom for COP26, UN Special Envoy for Climate Action and Finance
Mary SchapiroMary Schapiroyoutube
Head Of The TCFD Secretariat, Vice Chair For Global Public Policy At Bloomberg And Senior Adviser To The Founder

Opening Session

Speakers as representatives of the co-organizers, investors and business entities delivered messages concerning changes surrounding the TCFD recommendations since the first Summit and efforts that investors and industrial organizations have been taking for implementation of the TCFD recommendations. As the momentum for climate related disclosure is further growing backed by expansion of COVID-19 and as TCFD disclosures are improving in terms of both quality and quantity, they stated their expectations for implementation of TCFD disclosures, e.g., analysis of financial impacts, and application of TCFD disclosures to innovations and transition.

Peter Bakkeryoutube
President & CEO, World Business Council for Sustainable Development (WBCSD)

Mr. Peter Bakker, WBCSD President and CEO, stated we must now focus on how climate and sustainability-related information is used in the investor-corporate relationship and create a capital market that recognizes and rewards sustainable business, attracting a lower cost of capital and more financial capital to lead the transition and transformations across critical systems.

Ito Kunioyoutube
Chair of the TCFD Consortium / Director of Hitotsubashi CFO Education and Research Center

Mr. Ito Kunio, Chair of the TCFD Consortium and Professor of the Graduate School of Business Administration, Hitotsubashi University, explained that under the cooperation framework between the public and private sectors, the TCFD Consortium, the world’s largest body consisting of supporters for the TCFD recommendations, revised the TCFD Guidance 2.0, with best practices and started a project, called GIG Supporters by investors who utilize the Green Investment Guidance for actual investment decisions and engagement. Following this, he suggested that to achieve sustainable society, we should take climate change as an opportunity to shift corporate management over the medium to the long-term period

Miyazono Masatakayoutube
President, Government Pension Investment Fund (GPIF)
Laurence Finkyoutube
Chairman and Chief Executive Officer, BlackRock, Inc.
Ronald P. O’Hanleyyoutube
Chairman and Chief Executive Officer, State Street Corporation
Sugimori Tsutomuyoutube
Vice Chair, Keidanren, Japan Business Federation / Representative Director, Chairman of the board, Group CEO, ENEOS Holdings, Inc.
Mike KanetsuguMike Kanetsuguyoutube
Chairman, Japanese Bankers Association / President and CEO, MUFG Bank, Ltd.
Negishi AkioNegishi Akioyoutube
Chair, The Life Insurance Association of Japan / President, Representative Executive Officer and Group CEO, Meiji Yasuda Life Insurance Company
Miyahara KoichiroMiyahara Koichiroyoutube
President and CEO, Tokyo Stock Exchange, Inc.

Special Discussion

Panelists who are representatives of business entities and investors presented their views on impacts caused by the pandemic and future directions of responses in reviewing their efforts for TCFD disclosures for the past one year. Some investors explained that companies taking into consideration ESG factors have been showing a positive correlation with their performance even in the situation of the pandemic, and also that some value chains as a whole have been engaging in net-zero emissions of CO2. Some representatives of business entities explained, against the backdrop of the quick changes seen in global-wide business environments backed by the pandemic, the need for accelerating responses, as well as the importance of investments in innovations to strike a balance between economic value and social value.

The panelists discussed that TCFD is the best framework for disclosures currently available for ESG investments as information useful for decision making on investments is necessary and that it is significant to: fill gaps with other standards through further harmonization; assess long-term risk management and business opportunities, in particular, by making use of scenario analyses; disclose information; and hold dialogues with investors. Moreover, they stated that in some cases, the sector per se should be changed. Investors should be further committed to disclosures in order to assess companies that encourage players in and outside companies to bring about innovations.

Panel Discussion 1

Climate change is an important issue for a wide variety of industries. However, in light of the characteristics of risks and opportunities varying among industries, disclosures in accordance with the TCFD recommendations should be evaluated based on the understanding of materiality unique to the respective industries, rather than check box type of evaluation. This session held discussions on: methods that companies should use for applying climate-related risks and opportunities unique to them into business strategies and effectively managing such strategies; approaches to constructive dialogues and engagement based on the materiality of each industry.

Through these discussions, panelists shared recognition that investors should consider the materiality of each industry in their investment decision from a long-term viewpoint and that companies should build a mechanism for identifying potential climate risks and opportunities and deliberating them at a management level. It was noted that disclosures are step-by-step efforts and companies do not need to make perfect disclosures from the beginning. It is considered effective for industries having the same materiality to share their sense of crisis among them, while companies should take their unique, own approaches to strategies for managing materiality.

Panel Discussion 2

A scenario analysis under the TCFD recommendations is one of the key challenges in carrying out disclosure. Conducting a scenario analysis, applying the analysis into business strategies and proceeding with them should lead to explore business opportunities. Focusing on such scenario analysis, this session shared experiences of: implementation of the TCFD recommendations by companies and assessment of companies by investors and financial institutes based on companies’ TCFD disclosures. The panel also discussed awareness from such experiences.

Through these discussions, panelists shared the importance of starting and continuing a scenario analysis and the involvement of management and related divisions. They also shared recognition that as a positive effect, a series of processes for sharing recognition with management team has a favorable influence on management, such as implementation of a scenario analysis may change the awareness of management team.


Mr. Yamashita Ryuichi, Director-General, Industrial Science and Technology Policy and Environment Bureau, METI, introduced the "Climate Innovation Finance Strategy 2020."

Panel Discussion 3

Financing for transition, green and innovation is indispensable for global reduction of CO2. In response to the keynote speech, this session held discussions on: the importance of financing for transition and environmental innovations, and approaches that financial institutes and investors should take in assessing companies engaging in transition and innovations by making use of TCFD disclosures.

Panelists stated that companies should conduct TCFD aligned with disclosures with creativity and ingenuity, while investors proactively assess such disclosures to promote financing transition and innovation. Efforts for the Zero-Emission Challenge project are considered as one of the first step.

Panelists confirmed that Japan will secure voluntary and flexible disclosures, and regulatory foundation of disclosure has already been built with soft laws including the corporate governance code. Taking this as a starting point, Japan further encourages voluntary efforts and proceed to enhance such foundation working with industries.

Closing Remarks

Mizuno Hiromichi youtube
Special Advisor of METI/ TCFD Summit Ambassador

Mr. Mizuno Hiromichi, Special Advisor of METI as well as TCFD Summit Ambassador, delivered closing remarks, stating some suggestions including the following.

Climate change is the primary threat to the international community but on the contrary, this can be a great opportunity. All innovations support transition to sustainable economies and these innovations need proper analyses and investments. The TCFD framework also serves as a process to fairly assess companies engaging in decarbonization. Financing for transition, green and innovations is essential for global reduction of emissions, and TCFD disclosures should include information for decision making on financing those areas. The TCFD Consortium has been advancing discussions, under the leadership of Japan, on approaches to introducing such information into the disclosure framework. Japan will strive to enrich these discussions with international support.

Although situations and economic environments in different regions and countries are things to consider in proceeding mandatory disclosure, we should not use these factors as excuses. There may be a variety of approaches to establishing such requirements other than legislation. Accordingly, governments and industry should discuss more creative approaches to this end, such as establishing substantial requirements. It is also necessary for us to consider the balance between voluntary efforts and mandatory requirements in order to respect companies taking on more aggressive disclosures under their voluntary efforts.

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