Japan's financial watchdog is considering requiring companies listed on the Tokyo Stock Exchange to disclose information on greenhouse gas emissions throughout their supply chains.
The Financial Services Agency will set up a study group this month to hammer out policy details to support global efforts to accelerate decarbonization, according to plans proposed at a meeting of the Financial Services Council.
A file photo taken in May 2007 shows an industrial area in Ichihara City, Chiba Prefecture. (Joint)
Government plans will first target large companies facing increased scrutiny from global institutional investors, rather than applying envisaged rules to all 1,600 companies listed on the prime market at once One option would be to do so.
Japan aims to develop sustainability disclosure standards based on standards released in 2023 by the International Sustainability Standards Board, a global organization that sets financial reporting rules. The country's draft standards are expected to be released by the end of March.
Starting from the fiscal year ending March 2023, Japanese companies will be required to include information on their efforts to address sustainability issues in their financial statements, in addition to information such as the gender pay gap.
Some companies already disclose emissions data without any special requests.
The European Union is tightening sustainability reporting rules for companies as greenhouse gas emissions are blamed for global warming. A similar movement is occurring in the United States.
The Japanese government has set a goal of achieving carbon neutrality by 2050 and is seeking to further encourage private sector investment to achieve green growth.
In a survey of approximately 11,300 companies conducted by research firm Teikoku Databank last year, 17.3% said their decarbonization efforts had a negative impact, while 14.1% said their business operations would be positively impacted. replied. The remaining companies said they expected little impact or were unsure.
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