Connect with us

Finance

Year in review: Sustainable Finance Law in Japan

Published

on

Year in review: Sustainable Finance Law in Japan

All questions

Year in review

Between 2022 and 2023, there have been various developments in connection with sustainable finance in Japan.

i Cabinet decisions on the Basic Policy for the Realisation of GX (Green Transformation) and the National Strategy on Biological Diversity 2023–2030

The Basic Policy for the Realisation of GX (Green Transformation) was formulated at the end of 2022 based on discussions by the GX Implementation Council established in the Prime Minister’s Office and committees from various ministries. The government announced that it would promote primarily the following two initiatives in addition to addressing climate change in order to simultaneously ensure the stable supply of energy and achieve economic growth: (1) promotion of decarbonisation initiatives towards GX, such as switching to decarbonised energy sources that contribute to improving the self-sufficiency rates of energy, such as renewable energy and nuclear power, in order to ensure stable energy supply in addition to thorough improvement of energy efficiency, and (2) realisation of the ‘Pro-Growth Carbon Pricing Concept’, which includes bold advance investment support using ‘GX Economy Transition Bonds’, incentives for GX investment through carbon pricing and utilisation of new financial instruments. For details of the status of the carbon markets and carbon trading system in Japan, see Section VIII.

Advertisement

The National Strategy on Biological Diversity 2023–2030, which was drafted based on the Kunming-Montreal Global Biodiversity Framework adopted at COP15 in December 2022, was announced in March 2023. See Section X for details.

ii Enactment of the disclosure rules regarding sustainability information

The amended regulations were enacted to require listed companies to disclose sustainability information in their annual securities reports under the Financial Instruments and Exchange Act (FIEA) and the initial mandatory disclosures on these matters were made via annual securities reports for the fiscal year ending March 2023. For details of this development, see Section V.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Finance

AgriBank Reports Third Quarter 2024 Financial Results

Published

on

AgriBank Reports Third Quarter 2024 Financial Results

Continued Strong Net Income and Loan Credit Quality

ST. PAUL, Minn., Nov. 7, 2024 /PRNewswire/ — Today, St. Paul-based AgriBank announced financial results for the third quarter of 2024, with strong profitability, credit quality, and liquidity and capital.

AgriBank (PRNewsfoto/AgriBank)

Highlights:

  • Profitability: Net income remained strong at $685.0 million for the nine months ended September 30, 2024. AgriBank’s year-to-date return on assets (ROA) ratio of 51 basis points was above the target of 50 basis points.

  • Credit quality: Total loan portfolio credit quality remained strong, with 99.4 percent of loans classified as acceptable at September 30, 2024.

  • Liquidity and capital: End-of-the-quarter liquidity was 155 days, well above the regulatory requirement. Capital also remained well above the regulatory minimums and company targets.

“Amid a continued volatile interest rate environment, AgriBank is able to report another successful quarter with consistent profitability, credit quality, and liquidity and capital,” said AgriBank CEO Jeffrey Swanhorst. “We look forward to continuing to collaborate with the Farm Credit Associations we support to bolster their financial performance as, together, we meet the credit needs of farmers, ranchers and other rural borrowers.”

2024 Results of Operations

Advertisement

Net interest income was $768.5 million for the nine months ended September 30, 2024, an increase of $46.6 million, or 6.5 percent, compared to the same period of the prior year. The increase was primarily driven by higher spread income on retail loans in AgriBank’s asset pool portfolio, when compared to the prior year, due to the purchase of a significant number of loan participations during the second half of 2023. Additionally, the benefit of equity financing from higher interest rates compared to the same period of the prior year has also contributed to the increase in net interest income. Equity financing represents the benefit of non-interest bearing funding. AgriBank typically experiences slight net interest margin compression as fixed-rate assets age, usually offset by the margin from new volume. However, with the current inverted yield curve, new volume margins are not providing the typical offset. Additionally, spread income on investment securities has declined compared to the same period of the prior year due to the mix of investment securities and reduced spreads on money market instruments.

Non-interest income was $85.9 million for the nine months ended September 30, 2024, an increase of $12.7 million, or 17.3 percent, compared to the same period of the prior year, primarily related to an Allocated Insurance Reserve Accounts (AIRAs) distribution received from the Farm Credit System Insurance Corporation (FCSIC) during the second quarter of 2024. Additionally, mineral income increased for the nine months ended September 30, 2024, compared to the same period of the prior year, related to a rise in oil production, a result of an increase in new well activity during the first quarter of 2024.

Continue Reading

Finance

Minnesota voters back half of school finance levies, reelect most board incumbents

Published

on

Minnesota voters back half of school finance levies, reelect most board incumbents

About half the Minnesota districts that asked voters for more money on Election Day got it. 

In Northfield, the school district’s $121 million three-question funding request saw full approval, meaning school leaders will be able to move forward with building a new gymnasium, classroom addition and geothermal heating and cooling system.

Minneapolis voters OK’d a $20 million technology spending levy for the financially strapped public school district. 

Voters across the state were willing to renew existing levies for building maintenance and upgrades, and for technology. It was a different story, though, when they were asked to pay more for day-to-day operating costs.

Thirty districts this year asked voters to approve levies for daily costs, including 28 that put questions on ballots this week. Only 40 percent of those requests were OK’d — one of the lowest approval rates since 1980. 

“One of the things that really stuck out to us is people were willing to vote to maintain. They weren’t interested in increasing their local property taxes,” said Kirk Schneidawind, executive director of the Minnesota School Boards Association.

Schneidawind said he believes that’s a reflection of how Minnesotans feel about the economy. 

“The general default for many voters is, ‘I’m going to vote no if I don’t understand it or don’t know about it,’” Schneidawind said. “People, in their mind, the economy, prices of things and costs of things have gone up. And inflation, even though it’s been coming down, it’s still impacting their pocketbook. And I think perhaps folks saw that or felt that and weren’t supportive of new increases for our public schools.”

Statewide, 45 districts put some sort of financial question on their local ballots this year with 51 percent approved. 

Advertisement

School boards

More than 300 Minnesota school districts sought to fill open school board seats this election. In places where incumbents were on the ballot, voters elected to keep them at a rate of nearly 87 percent.

While this year’s competition wasn’t as intense as in recent years, many districts had multiple candidates on their ballots. Behind those candidates were organizations spending time and money on training and endorsements. 

The Minnesota Parents Alliance, a conservative organization launched in 2022, endorsed nearly 130 candidates in 56 Minnesota districts in its voter guide. Teacher unions backed nearly 100 candidates in 33 districts. The School Board Integrity Project, a progressive organization launched last year, endorsed 45 candidates in 27 districts.  

In the 29 districts where there were candidates from both the Minnesota Parents Alliance and the teachers union or School Board Integrity Project facing off, 31 Minnesota Parents Alliance-endorsed candidates won and 50 union or School Board Integrity Project-endorsed candidates won. 

Education Minnesota president Denise Specht claimed victory in an emailed statement, saying union-backed candidates won nearly 75 percent of their races. 

Advertisement

Leaders of the Minnesota Parents Alliance also focused on wins, pointing to wins in 56 percent of races with endorsed candidates and seats gained in 47 school boards and majorities gained on boards in Elk River, Lakeville, Forest Lake and Prior Lake, MPA leader Cristine Trooien said in a statement.

Here are the results in a few districts MPR News tracked on Tuesday.

Prior Lake-Savage

In 2022, the open seats on this suburban district’s school board were hotly contested by opposing slates of candidates who staked out sides in a tug of war that involved organized parent groups, teacher unions, networks of political donors and families worried school equity efforts were in jeopardy. 

This year there were six candidates running for three open seats. The candidates — just one of whom was seeking reelection — were divided into those backed by the local teacher union versus those who received endorsements from the Minnesota Parents Alliance. 

Two of the Minnesota Parents Alliance candidates won, backed by a local parents group that sank at least $1,800 in the election. Just one union-endorsed candidate won, meaning this school board, come January, will be led by a majority of MPA-endorsed candidates. 

Advertisement

Voters in this district also rejected the school system’s request for a levy to help pay for daily operations. 

Brainerd

In Brainerd, there were seven candidates running for three seats. Only one didn’t secure endorsements from either the Minnesota Parents Alliance or the local teacher union. All union-endorsed candidates were incumbents. Of those, two won reelection. The third open seat was filled by a Minnesota Parents Alliance-backed candidate. 

In the 2022 election cycle, Brainerd saw a frenzy of school board campaign spending with candidates racking up nearly $80,000 in disbursements on advertising, mailers and signs. This year, the spending has come way down and is now closer to $11,000. 

The three election winners will oversee a district serving at least 6,000 students in north-central Minnesota.

Fergus Falls

Nine candidates were running to fill three seats in this west-central Minnesota district where nearly 3,000 students attend school. Three union-endorsed candidates, supported by about $2500 in union campaign spending, beat out three Minnesota Parents Alliance-endorsed candidates. 

Advertisement

Lakeville

In Lakeville, nine candidates vied to fill three seats on a board overseeing district-level decisions for more than 12,000 students in this Twin Cities outer ring suburb.

Campaign finance reports from August and September show close to $20,000 spent on the board elections, mostly from the teachers union. The six endorsed candidates were backed by either the local teachers’ union or the Minnesota Parents Alliance, none of whom are incumbents. 

One union candidate and two Minnesota Parents Alliance candidates won, meaning alliance-backed members will hold a board majority come January. 

Osseo

In the Twin Cities suburban district of Osseo, there were six candidates running to fill three open board seats. None of the candidates were incumbents. They raised at least $9,000 between them for websites, business cards, flyers, T-shirts, signs and other campaign spending.

This district’s current board has been the site of clashes over policies regarding gender inclusion, instruction and LGBTQ+ pride flags. 

Advertisement

On Tuesday voters backed two union and School Board Integrity Project candidates and one Minnesota Parents Alliance candidate. 

St. Francis

In St. Francis, in the northern Twin Cities exurbs, there were 10 candidates running for four open school board seats. The Minnesota Parents Alliance and local teachers union each endorsed four candidates, none of whom was an incumbent. 

The winners were evenly split — two union-endorsed candidates and two Parents Alliance-endorsed candidates won. 

Rosemount-Apple Valley-Eagan

This metro-area district saw two candidates competing in a special election to fill a single school board seat. The local teachers union spent more than $90,000 to support their endorsed candidate, who won the seat.

Advertisement
Continue Reading

Finance

Germany's Scholz fires ‘egotistic’ finance minister

Published

on

Germany's Scholz fires ‘egotistic’ finance minister

STORY: :: November 6, 2024

:: Berlin, Germany

:: Germany’s Scholz sacks finance minister

Christian Lindner, seeks confidence vote

:: He says Lindner broke his trust

Advertisement

‘too many times’ and blocked lawmaking

:: Olaf Scholz, German Chancellor

“Ladies and gentlemen, I have just asked the President for the dismissal of the Finance Minister. I feel forced to take this step in order to avert damage from our country. We need a government that is able to act, that has the strength to make the necessary decisions for our country. That’s what was important to me in the past three years. That’s what’s important to me now. I have made another comprehensive offer to the Free Democrats coalition partner at noon today how we can close the gap in the federal budget without throwing our country into chaos.”

“Too many times did Finance Minister Lindner block laws irrelevantly. Too many times did he act to serve his clientele and party. Too many times did he break my trust. Even the agreement on the budget was withdrawn by him after we had agreed on it in long negotiations. There is no basis of trust for further cooperation. This way, serious government work is impossible.”

“In the very first week of the parliamentary session in the new year, I will call for the confidence vote so that the Bundestag can then vote on it on January 15. That way, parliamentarians can decide if they want to pave the way for a snap election. That election could then take place at the latest by the end of March while respecting the rules of the constitution.”

Advertisement

After firing Finance Minister Christian Lindner of the Free Democrats (FDP) party, Scholz is expected to head a minority government with his Social Democrats and the Greens, the second-largest party.

He would have to rely on cobbled-together parliamentary majorities to pass legislation and he plans to hold a parliamentary confidence vote in his government on Jan. 15.

The collapse of Scholz’s three-way alliance caps months of wrangling over budget policy and Germany’s economic direction, with the government’s popularity sinking and far-right and far-left forces surging.

“We need a government that is able to act, that has the strength to make the necessary decisions for our country,” Scholz told reporters.

Scholz said he fired Lindner for his obstructive behaviour on budget disputes, accusing the minister of putting party before country and blocking legislation on spurious grounds.

Advertisement

The move comes a day after the election of Republican Donald Trump as U.S. president, with Europe scrambling to form a united response on issues from possible new U.S. tariffs to Russia’s war in Ukraine and the future of the NATO alliance.

Continue Reading

Trending