ABSTRACT
A tale of responsible investment (RI) in Japan, which is more widely known as socially responsible investment (SRI), must incorporate two narratives. In the common narrative, Japan’s SRI history begins with the launch of investment funds in the late 1990s when the financial ‘big bang’ swept Japan (Tanimoto, 2003; Sakuma and Louche, 2008). 1 A small number of SRI rating agencies and fund managers affiliated with large financial groups successfully channelled the money of environmentally conscious households into new financial products, called ‘eco-funds’ and, later, ‘SRI funds’ (Sakuma and Louche, 2008). 2
At a glance, Japan’s SRI differs from that of North American and European counterparts whose historical roots are founded in ethical beliefs (Sakuma and Louche, 2008). SRI in Japan, in contrast, has been driven by business incubation. Japan’s new funds invested exclusively or predominantly in companies with high environmental performance. 3 An embryonic form of SRI in Japan can be traced to credit unions that emerged to support community development in the 1960s (JSIF, 2007).
