Zenkyoren announces ESG investment in “S&P 500 Carbon Efficient Index in TTM Rates JPY Hedged”

17 November 2021

Close Up Plant in Female Hands. Care of the Environment. Ecology concept

A key aim of Japanese ICMIF member, Zenkyoren (National Mutual Insurance Federation of Agricultural Cooperatives, President: Fumio Yanai) is to contribute to the development of the agricultural sector in Japan as it is also a member of the JA (Japan Agricultural Cooperatives) Group.

Currently, in domestic agriculture and local communities in Japan, the foundation of Zenkoren’s business, the risks from climate change are increasing, including an increase in natural disasters such as heavy rains and typhoons due to global warming.

From an investment perspective, Zenkyoren says it must respond to this risk in a responsible manner and this is a key area of focus for the cooperative insurer.

Recently, as a response to environmental and social issues associated with climate change, and from the perspective of working to expand its ESG investment while securing stable profits, Zenkyoren has announced that it has invested JPY 10 billion yen in “NZAM S&P 500 Carbon Efficient Index in TTM Rates JPY Hedged”.

The S&P/JPX Carbon Efficient Index is designed to measure the performance of companies in the TOPIX (published by TSE), while overweighting or underweighting those companies that have lower or higher levels of carbon emissions per unit of revenue.

NZAM is “Norinchukin Zenkyoren Asset Management Co Ltd,” an investment management company jointly owned by Zenkyoren and Norinchukin Bank.

Earlier this year, Zenkyoren also announced it had invested in the first “Nutrition Bond” issued by Corporacion Andina de Fomento (CAF), an international development bank which was established under an international agreement with various countries in Latin America.

Zenkyoren has made one of the missions of its JA Mutual Insurance Programme to be to “contribute to the creation of a prosperous and secure community through active business activities.”

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