Japan Markets ViewESG Investment: Signs of Bottoming Out Seen in QUICK ESG Investment Survey

 

According to the “QUICK ESG Investment Survey,” there are signs of a bottoming out in the balance of ESG investments (amounts of ESG investing assets) in Japanese stocks and the proportion of ESG investments to total assets under management (hereinafter referred to as the “ESG investment ratio”). The ESG investment ratio declined in early 2020, largely due to stricter definitions implemented to address “ESG washing” (greenwashing). Following this period, despite the “anti-ESG” trend originating in the United States, Japanese institutional investors have continued to promote stewardship activities such as “exercise of voting rights” and “engagement”—constructive dialogue with investee companies. Such developments are believed to be behind the bottoming out of ESG investment. This month’s research report covered these signs of a bottoming out in ESG investing.

 

Executive Summary

1. The same institutions that provided valid responses for both “Outstanding assets under management (AUM) for Japanese stocks” and “ESG investment balance” for the current and previous years were extracted and compared. As a result, the “ESG investment ratio” rose for the first time in three years in the “QUICK ESG Investment Survey 2025” (hereinafter referred to as the “2025 Survey”; past surveys are denoted in the same manner).
2. A comparison of the 37 institutions that provided valid responses to both surveys shows the ESG investment ratio rose 3 points to 49% in the “2025 Survey” from 46% in the “2024 Survey.” This was the first increase since the ratio grew from 48% in the “2021 Survey” to 61% in the “2022 Survey,” based on a comparison of the 17 institutions that responded to both surveys. The ESG investment ratio in the “2023 Survey” declined from the “2022 Survey.” The ratio in the “2024 Survey” remained flat compared to the “2023 Survey.”
3. Looking at the AUM by ESG investment methodology in the “2025 Survey,” the increases in balances and valid responses for the “exercise of voting rights” and “engagement” are prominent compared to “screening,” which selects investment targets based on specific criteria, and “integration,” which incorporates ESG factors. These survey results are considered to support the rise and establishment of stewardship activities.

 

If you apply for a download, you can read the full text of the Research Report

QUICK ESG Research Center
https://corporate.quick.co.jp/en/quick_esg/

Contact us
https://corporate.quick.co.jp/en/contact/form_service_en/

Back to Japan Markets View Top