The Sustainability Standards Board of Japan (SSBJ) has unveiled its inaugural disclosure standards, bringing the country’s green reporting framework in line with international requirements. The new standards, published earlier this week, incorporate key elements of the International Sustainability Standards Board Standards, to ensure international comparability in sustainability-related financial disclosures. The standards comprise three documents: the Application Standard, which outlines basic requirements for sustainability reporting, the IFRS S1-aligned General Standard, focusing on sustainability-related risks and opportunities, and the Climate Standard, which mirrors IFRS S2, detailing climate-related disclosures. The SSBJ Standards were developed under the assumption that they would become a mandatory requirement under Japan’s securities laws and regulations for entities listed on the Prime Market of the Tokyo Stock Exchange. However, their application remains voluntary for other organisations. The SSBJ developed these standards through an extensive consultation process, including a review of more than 100 comment letters received in response to three Exposure Drafts released in March 2024. A revised Exposure Draft was published in November 2024, addressing issues related to calculation periods for the reporting of metrics. The Financial Services Agency will determine the legal framework for implementing the new standards. The SSBJ said it will monitor global disclosure trends and consider future updates to maintain international consistency.
The new standards, issued following an extensive consultation process, incorporate key elements of the ISSB Standards.https://t.co/Zo8nY1mYK6
— Regulation Asia (@RegulationAsia) March 7, 2025
