#Japan #decarbonization #Tokyo #EY ShinNihon #Transition Plans

EY ShinNihon Launches Decarbonization Transition Support Program

In an impactful move towards sustainability, EY ShinNihon, a member firm of EY, has announced the initiation of a program to assist regional financial institutions in developing transition plans aimed at achieving a decarbonized society. As part of Japan’s Environmental Ministry’s initiative, applications for this program will be accepted from May 8, 2025, to June 6, 2025. An informative session outlining the program will be held online on May 20, 2025.

Background of the Initiatives

Since the adoption of the Paris Agreement, global efforts to combat climate change have rapidly gained momentum, advancing towards a decarbonized society. The Task Force on Climate-related Financial Disclosures (TCFD) introduced the concept of transition plans in its 2021 report, emphasizing the need for structured disclosures concerning these plans. Recognizing the significance of formulating and disclosing transition plans, the Sustainability Standards Board of Japan (SSBJ) has announced sustainability disclosure standards under review by the Financial Services Agency.

Despite progress in analyzing greenhouse gas emissions and assessing associated risks and opportunities, many financial institutions struggle to align their strategies with necessary transition plans. This need is particularly pronounced among regional financial institutions, which are encouraged to engage not only in their own climate initiatives but also to promote decarbonization within their communities through effective partnerships with their clients.

The program initiated by EY ShinNihon is aimed at providing a framework and support for these regional institutions, assisting them in the transition and advancement towards a decarbonized community. By conducting analysis around financed emissions (FE) and fostering an environment of information sharing and learning, the program seeks to create model cases of effective transition plan development that can guide other financial institutions.

Program Details and Application Process

The support program will include:
1. Preliminary meetings to discuss the program’s goals and implementation process.
2. Educational sessions focused on recent trends in transition plans, climate change, natural capital, and circular economy interrelations.
3. Approximately five support meetings aimed at practical transition plan formulation based on FE analysis.
4. A reporting meeting to exchange challenges and share insights among participating institutions.
5. A concluding report session outlining the program's outcomes.

The program is open to regional financial institutions or their holding companies that show a strong commitment to develop transition plans. Institutions may apply directly or through their holding companies, choosing one subsidiary for the transition plan development. For full application requirements, interested parties should refer to the Ministry of the Environment's official announcement.

Important Dates and Information

• - Application Period: May 8, 2025, to June 6, 2025, by 17:00 JST.
• - Informational Session: May 20, 2025, from 11:00 to 12:00 JST via Microsoft Teams.
• - Contact for Queries and Submissions: EY ShinNihon’s Financial Services Division, Transition Plan Support Program Administrative Office (contact via email: [email protected])

To participate in the informational session, please ensure to copy the meeting URL provided and join the session promptly. Each financial institution is encouraged to limit their connections to three for optimal performance.

For more information and detailed guidelines, visit the Ministry of Environment’s dedicated announcement page for this program: Environmental Ministry Press Release

Conclusion

The EY ShinNihon initiative not only exemplifies a commitment to fostering sustainability in the financial sector but also ensures that regional institutions are well-equipped to navigate the challenges posed by climate change. This program is a step towards a collaborative approach in building a sustainable future and addressing pressing environmental issues effectively.