SSE Initiative
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NameJapan Exchange GroupCountryJapanNumber of listed companies3,924Domestic market capitalization6,066,496 million US$SSE Partner ExchangeYesHas annual sustainability reportYes

ESG reporting required as a listing ruleYes

The Exchange requires every listed company to prepare a report on corporate governance, including some ESG issues, which provides investors with information on corporate governance in a comparable format.

If any environmental or social information is deemed to have a material effect on investors investment decisions, it must be immediately disclosed using TDnet as required by the Exchanges Listing Rule and the issuer must file a material change report on TDnet if a change or correction should be made to the information disclosed.

Japan's Financial Services Agency has made reporting on sustainability, including initiatives on climate change and human capital, mandatory in Annual Securities Reports, starting from those covering fiscal years ending March 2023. (Japanese)

Has written guidance on ESG reportingYes

JPX published a Practical Handbook for ESG Disclosure (also in Japanese). The Handbook is to support listed companies who are choosing to work on ESG disclosure, linking their company's mid- to long-term corporate value improvement to its sustainable growth.

On 3 June 2019, JPX announced the publication of the Japanese Translation of Model Guidance for Companies on Reporting on ESG Information. Download the Japanese translation here.

Corporate Governance Code incorporated into the Tokyo Stock Exchange listing rules not only sets forth comprehensive principles on governance issues, but also calls for taking appropriate measures to address sustainability issues, including the provision of non-financial information, on comply or explain basis.

Compliance with the corporate governance code can be found here.

See also: JPX ESG Knowledge Hub :

Introductions to the Main ESG Disclosure Frameworks (japanese),

ESG investment by institutional investors (japanese),

Introductions to ESG Ratings Agencies and Data Providers, and ESG Finance Ratings Providers (Japanese)

Offers ESG related trainingYes

JPX and TSE offer research and booklets, e-learning and seminars/events on corporate value improvement, roles of an independent director, analysis on trends of governance structure at listed companies, integrated reporting and responsible investment (as of March 2018).

Training program for company executives (in Japanese).

E-learning (in Japanese).

Responsible Investment event (in Japanese).

Briefing on methodology for gender specific thematic listings (in Japanese).

8 March 2019: Ceremony and Symposium on the Occasion of International Women's Day.

12 Feb 2019: JPX Co-hosted symposium on the TCFD Framework, welcoming Mary Schapiro, Special Advisory to the Chairman of the TCFD.

5 Nov 2018: JPX hosted Mark Carney, Governor of the Bank of England and Chair of the FSB for a discussion with issuers and investors on the FSB's Task Force on Climate-related Financial Disclosures (TCFD)

4 Sept 2018: Symposium on responsible business conduct and ESG investment

A list of events co-hosted or supported by JPX can also be found here.

See also for 2022 activities JPX ESG Knowledge Hub :

ESG Information Disclosure Practical Seminar ,

List of Practical Seminars,

Related seminars

Market covered by sustainability-related indexYes

JPX-Nikkei Index 400

JPX-Nikkei Mid and Small Cap Index

JPX/S&P CAPEX&HUMAN CAPITAL INDEX.

See also here (in Japanese)

Has sustainability bond listing segmentYes

JPX launched a dedicated platform for Green and Social bonds on January 22, 2018. The platform allows issuers, at their discretion, to post information pertaining to Green and Social bonds, from among those listed on TOKYO PRO-BOND Market. If an issuer wishes to post information pertaining to a bond listed on TOKYO PRO-BOND Market through the platform for Green and Social bonds, the issuer is required to submit to TSE the information about green or social use of proceeds pertaining to said bond, and such information will be posted on the platform. In addition, issuers can post such information as external reviews, continued reporting after bond issuance, and other related information.

Japan's Environmental Ministry issued Green bond guidelines in 2017, found here.

Has SME listing platformYes

Mothers, since 2006.

Women on boards mandatory minimum ruleNoAdditional information

TSE and the Ministry of Economy, Trade and Industry (METI) annually select listed companies in recognition of outstanding efforts in promoting women empowerment and employee health and productivity.

TSE operates an infrastructure fund market to facilitate investment in renewable energy facilities and other infrastructure.

Sustainability section of the website

List of partners can be found here.

Organizational model of stock exchange

Listed company for profit; TSE & OSE demutualized in 2001.

Regulatory bodies

Financial Services Agency.

Regulatory modelStrong Exchange SRO Model

The Financial Instruments and Exchange Act (FIEA) requires financial instruments exchanges to fulfill self-regulatory functions. Japan Exchange Regulation (JPX-R) is a self-regulatory organization established by JPX, to perform self-regulation on behalf of TSE and Osaka Exchange. Independence and fairness of JPX-R is assured by many arrangements, including its organization structure where a majority of board of governors is comprised of outside governors. At the same time, JPX-R can leverage its proximity to the market operators and expertise across corporate group, and this enables JPX-R to respond swiftly to new market developments.