Japan set to mandate climate disclosures from April 2022
Japan’s Financial Services Agency (FSA) is likely to require mandatory climate disclosures as early as April next year, covering carbon emissions as well as other climate-related risks. These disclosures will be in line with Task Force on Climate-related Financial Disclosures (TCFD), and will replace the current non-binding ‘comply or explain’ approach.
The mandate is timed to come into force the same time as a reorganisation at the Tokyo Stock Exchange (TSE), which from April will divide its stock market into three new segments: prime, standard, and growth. The disclosures will initially apply to around 4,000 larger companies listed on the ‘prime’ market, later expanding to all companies that submit annual securities reports.