JARC Receives Special Recognition in ESG Finance
The Japan Automobile Recycling Promotion Center (JARC), located in Minato City, Tokyo, has been awarded a Special Award at the 7th ESG Finance Awards Japan, organized by the Ministry of the Environment. This prestigious award recognizes organizations that actively promote ESG financing or environmental and social projects, showcasing their innovative approaches to widely share these practices and expand ESG finance.
The ESG Finance Awards Japan was established in the 2019 fiscal year by the Ministry of the Environment. Its goal is to honor various stakeholders, including institutional investors and financial institutions, engaging in impactful initiatives. JARC was recognized specifically for its contributions toward the sustainable development of the automotive recycling industry, through mechanisms such as engaging with issuers and promoting the development of the ESG bond market, funded by the automobile recycling fees.
JARC’s CEO, Eiichi Hosoda, highlighted the organization's commitment to fostering sustainable finance, as they aim to set a model for others and contribute positively toward a sustainable society. The recent award is a testament to JARC’s innovative integration of automobile recycling funding with ESG bond investments, which includes a goal of allocating 10% of total bonds to ESG bonds in the medium to long term.
The selection committee for the ESG Finance Awards acknowledged JARC for its new approach that links these resources and for its ongoing engagement with municipal issuers. Their dedication to public awareness activities regarding the circular economy and promoting desirable ESG investing as a public interest corporation were particularly appreciated. JARC has set an example that could guide investors with constrained assets in finding models for their investment strategies, showcasing how specialized operations can innovate in the sustainable finance sector.
About JARC
Founded in November 2000, JARC has been dedicated to resource efficiency and environmental preservation, promoting the proper processing and recycling of automobiles. Since 2018, JARC has actively engaged in ESG investments as a means to manage and operate the recycling fees deposited by automobile users. As of December 2025, JARC's accumulated investment in ESG bonds has reached 50 billion yen, demonstrating its commitment to integrating sustainable practices within the automotive recycling domain.
JARC's Impact
JARC is operating as a designated entity under the Automobile Recycling Law, with oversight from both the Ministry of Economy, Trade and Industry and the Ministry of the Environment. The organization is committed to pursuing forward-thinking initiatives in sustainable finance, aligning with the increasing global demand for environmentally-conscious financial practices.
For more information, visit JARC’s official website:
JARC Website.
Future Aspirations
As JARC moves ahead, it is poised to explore additional innovative pathways in sustainable finance, aiming to further contribute to building a sustainable society. The recent recognition at the ESG Finance Awards Japan marks just the beginning of their journey, establishing JARC as a leader in the field and an example for others to follow.