The Sustainability Standards Board of Japan (SSBJ) has announced the release of new exposure drafts for proposed standards for companies to report sustainability and climate-related information. These standards are based on the recently released sustainability disclosure standards by the IFRS Foundation’s International Sustainability Standards Board (ISSB). This release is a part of a series of steps that may lead to mandatory standardised sustainability-related disclosure requirements for Japanese listed companies. The Tokyo Stock Exchange revised the corporate governance code in 2021 with a requirement for prime market-listed companies to begin providing climate-related disclosures based on the TCFD recommendations. The new SSBJ proposals are closely aligned with the ISSB’s sustainability and climate reporting standards, while incorporating a few jurisdiction-specific options that companies may apply. The SSBJ released the standards as three exposure drafts, by dividing IFRS 1 (general sustainability) into two standards.

Source: ESGToday