Who does this affect: Listed companies on the Tokyo Stock Exchange Prime Market.
Why has it been introduced: Under the JFSA’s Strategy on Sustainable Finance, they seek to enhance the quality and quantity of climate-related disclosures as the country sees the acceleration towards decarbonization globally.
What does it require: Climate-related financial risk disclosure, including scope 1 and 2 GHG emissions, in line with the TCFD recommendations or equivalent international frameworks on a comply-or-explain basis. The JFSA also proposed statutory amendments to require additional disclosure in Annual Reports in December 2022, to be informed by international developments.
When did these rules come into effect: April 2022
Where is reporting required: Integrated annual reports.
Original text: The JFSA’s Strategy on Sustainable Finance