Second, the adoption of an Environmental and Social Risk Management System which covers policies, procedures, and tools to identify, assess, monitor, and mitigate exposures to environmental and social risks. This is the subject of the second phase of our policy issuance. Third, the disclosure requirements, which we consider as a key element in driving sustainable finance as it promotes transparency and market discipline.
Japanese financial institutions, on the other hand, avoided the financial crisis this time owing to the relatively sound balance sheets after having experienced the crisis in the 1990s.