Photo/Illutration Masakazu Tokura, the next chairman of Keidanren (Japan Business Federation), speaks at a May 10 news conference. (Tatsuya Shimada)

Masakazu Tokura will take over as chairman of the powerful Keidanren (Japan Business Federation) from June 1 and work toward establishing a “sustainable" capitalism.

Tokura, 70, the chairman of Sumitomo Chemical Co., was handpicked as Keidanren chairman by his predecessor, Hiroaki Nakanishi, who is stepping down due to health reasons.

After graduating from the University of Tokyo Economics Faculty, Tokura joined Sumitomo Chemical in 1974, when environmental pollution was a major issue and the Japanese economy was also reeling from the first oil shock.

But Tokura, who served as Sumitomo Chemical president for eight years from 2011, also believed that the “power of chemicals” was needed to resolve issues.

While the company generated profits from chemical fertilizers, petrochemicals were also used to create film used in crystal panels and materials for lithium ion batteries.

But in recent years as problems in capitalist economies including income disparity have been highlighted, Tokura has touched upon the need to seek a more sustainable capitalism.

While new Keidanren chairmen are normally selected from the current vice chairs, Tokura was chosen by Nakanishi even as he served as a vice chair of Keidanren’s Board of Councilors. Tokura previously served as Keidanren vice chair for four years from June 2015, but because of the manner in which he will take over the top post, he is expected to follow the course set by Nakanishi.

Though Tokura, whose term as chairman will be four years, has expressed interest in sustainable development goals, he said he also wants to aggressively propose steps to move toward a carbon-free economy and change society through digitalization.

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