Time - USA (2020-11-02)

SPONSOR’S WELCOME LETTER

Photo: Yu Kaida

Redesign Capitalism to

Incorporate Social Value

KENGO

SAKURADA

Group CEO

Sompo Holdings, Inc.

We need a new capitalism that increases consumer demand

for goods and services that contribute to the SDGs, and

that rewards companies meeting that “good demand” with

economic returns. In addition, capital markets should factor

in forecasts for long-term profi ts generated by corporate

actions in line with ESG, even if those actions do not deliver

short-term returns.

Some signs of this are emerging, such as the impact of

ESG investment on corporate valuation. In this context,

companies should set key performance indicators and take

concrete actions to realize social value that can contribute

to future profi ts. SOMPO is working to develop roadmaps for

its businesses to generate greater economic value – and to

ensure they create social value.

In Japan, SOMPO has entered the nursing care business as

an investment in the future to help solve the social challenges

of a rapidly aging society. SOMPO is determined to reform

eldercare and nursing homes. Our goal is that through

technology and datadriven research we can design “nursing

care that makes our grandparents smile.” That, in turn, would

bring greater happiness to society as a whole, and reduce

the burden of nursing care on society.

SOMPO, with its mission of being a “theme park for security,

health and well-being,” aims to contribute to the happiness

of people, society and the planet.

The world was facing daunting challenges before

the COVID-19 crisis. Climate change, environmental

destruction, worsening inequality and widening disparities

are problems that some among us chose to downplay or

dismiss.

Those challenges can no longer be ignored. The COVID-

crisis has exposed and amplifi ed our problems – and in some

cases made them worse. As well, we have come to re-value

just how precious our families and personal relationships are.

We are beginning to realize that unless our societies are just,

fair and healthy then our individual security and wellbeing

are built on fragile foundations.

COVID-19 is a reckoning. While exacting a heavy price, it is

also presenting us with the chance to safeguard our futures.

We must make the most of this moment. Governments,

citizens and businesses must change their behaviors. We all

must prioritize how we can contribute to building sustainable

societies.

Capitalism has lifted countless people out of poverty.

However, with the expansions of digitalization and

globalization, capitalism has produced greater inequalities

and divisions. In its present form, capitalism is not truly

contributing to the well-being of humanity. We need to

reimagine capitalism, to incorporate social sustainability and

people’s well-being.

Capitalism is a socio-economic system designed to meet

the demands of people. To redesign this system, to create a

“new capitalism,” the following points should be considered:

Create a system that can generate “good demand” to

meet the various objectives of the Sustainable

Development Goals (SDGs) and captures that as

economic profi t.

Business should pursue the happiness of the whole

society in line with Environmental, Social and Corporate

Governance (ESG), and society should support those

businesses that do, hence resulting in greater future

profi ts and increased current corporate values

A New Capitalism

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