Sustainability and Stock Investment: A Japan Perspective
Abigael Church, Larona Sedimo
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As climate change intensifies, Japanese stock market investors are increasingly drawn to companies that align themselves with the United Nations’ Sustainable Development Goals (SDGs). This research explores a global portfolio of 15 companies, selected for their commitment to SDGs 6, 7, 10, 11, and 13, and their investment potential based on risk-reward metrics. The project is part of a collaborative international effort involving students from Japan, Norway, and South Africa, providing a global perspective on sustainable investing. Over the course of a year, Stock Trak was used to monitor the portfolio’s performance, allowing us to take on a comparative approach against trends in the Japanese stock market. We expect our results will highlight how environmentally sustainable companies perform relative to traditional Japanese market benchmarks, offering useful insights for Japanese investors seeking to not only balance profitability but also environmental responsibility. By examining the interactions between global market dynamics and sustainable investments, this research highlights strategies Japanese investors can use to identify sustainable opportunities in an increasingly connected world.
Antoinette Tessmer