Sustainability Standards Board of Japan Issues IFRS-based Sustainability Reporting Standards

The Sustainability Standards Board of Japan (SSBJ) has taken a significant step towards establishing standardized sustainability reporting practices in Japan. They have released exposure drafts for new sustainability disclosure standards that align with the International Financial Reporting Standards (IFRS) Foundation’s International Sustainability Standards Board (ISSB). These exposure drafts include universal and theme-based sustainability disclosure standards, and the SSBJ has incorporated some jurisdiction-specific options to accommodate the local business landscape. Market participants are encouraged to review and provide feedback on the drafts before the July 2024 deadline, as the SSBJ aims to finalize the sustainability reporting standards by March 2025. Japan has been actively working to enhance sustainability reporting practices among listed companies. Initiatives such as the revision of the corporate governance code by the Tokyo Stock Exchange and mandates by the Financial Services Agency (FSA) for sustainability-related information disclosure in annual filings demonstrate the country’s commitment to transparency and sustainability. The issuance of these exposure drafts by the SSBJ is in line with these efforts and reflects Japan’s dedication to fostering consistent and transparent sustainability disclosures. Resources: https://esgnews.com/sustainability-standards-board-of-japan-issues-ifrs-based-sustainability-reporting-standards/