CSR Topics | Clean Technology Venture Investing

This year our merchant banking business in Europe began venture capital investing in clean technologies and alternative energy. Clean technologies are less detrimental to the environment than conventional power generation, and are more energy-efficient. They encompass a wide range of services and processes that lower consumption of natural resources, increase recycling and reduce pollution. The many types of clean and alternative energy technologies include solar, wind, and fuel cell power generation.

Clean technology also focuses on water, air, and soil decontamination as well as innovative materials, and the automotive sector.

US and European institutional investors and venture capitalists are increasingly interested in clean technologies, spurred on by high oil prices and concerns over energy security along with other market drivers such as the Kyoto Protocol and regulatory changes designed to minimize global warming. We feel that this is a business in which we can benefit from our inherent geographic strengths. Japan, our home market, is a world leader in environmental technologies. Our strong presence in Europe, a leading region in terms of environmental initiatives, gives us significant access to information and potential deals. Meanwhile, we have a strong, growing presence in Asia, the region where clean technologies are most needed due to the rapid growth in energy demand. As a global financial institution headquartered in Asia, the ultimate way for us to help prevent global warming might be through investing in US and European companies seeking to develop new clean technologies and businesses that will in turn provide environmental solutions in Asia, particularly China and India.