In this fireside chat, Kazushige Kobayashi, the Managing Director at MCP Asset Management, discussed the impact of climate investing in Japan versus Europe. The conversation, hosted by Giovanni Amodeo, touched on several key topics:\

1. Kobayashi’s Background and MCP Asset Management: Kobayashi has been investing in private equity funds for almost 30 years, starting his career with Mitsubishi Corporation. He later joined MCP Asset Management to focus more on sustainability and climate.

2. Climate and Sustainability in Japan: Kobayashi noted that the discussion around climate and sustainability started in Japan about 15 years ago. He mentioned that the country currently has around 5-6 impact investment funds, which are still quite small.

3. Compensation Alignment: Kobayashi discussed the importance of aligning compensation with both financial return and social return. He mentioned that some funds in the US and Europe are linking their carried interest to impact KPIs.

4. Climate Technologies in Japan: Kobayashi highlighted that MCP Asset Management is running a climate tech-focused fund of funds. They are investing in deep tech technologies related to climate tech, including hydrogen and battery technology.

5. AI in Investment: Kobayashi believes that while AI can make processes more efficient, the human element is still crucial in investment decisions. He emphasized the importance of meeting with fund managers and understanding team dynamics.

6. Aspirations for the company: Kobayashi expressed his aspiration to develop impact investment in Japan further. He mentioned that there are a couple of non-profit organizations in Japan that are educating people and developing the community in this area.

Timestamps:

00:08: Introduction
00:35: Kazushige Kobayashi’s Background
02:02: Interest in Climate and Impact Investing
03:24: Evolution of Impact Investing in Japan
04:37: Growth of Impact Investment Funds in Japan
06:25: Compensation Alignment and Metrics
07:41: Measuring Impact KPIs
08:26: Social Impact KPIs
09:24: Management Accountability and Consequences
10:19: Talent and Skill Set Challenges
11:34: Government Initiatives for Talent Development
12:25: Impact of COVID-19 on Japan
14:10: Japanese Commitment to Emission Reduction
14:26: Technological Landscape and Investments
15:49: Expectations vs. Evolution of Climate Impact Sector
16:46: Comparison of European and US Markets
17:32: Consideration of Secondary Investments
19:16: Impact of AI on the Industry
20:03: Data Collection and Evaluation Challenges
21:35: Human Element in Investment Decisions
22:27: Aspirations for MCP Asset Management