Japan signals global alignment with ISSB’s XBRL taxonomy
With its 2027 EDINET Taxonomy Development Plan, Japan’s FSA is showing strong intent to stay in step with international sustainability reporting. Here at XBRL International, we’ve prepared a consultation response to highlight why integrating the ISSB taxonomy into EDINET is the best path for filers and users alike.
We strongly support the FSA’s preferred “indirect hybrid” approach, which would import the IFRS Sustainability Disclosure Taxonomy (ISSB Taxonomy) into EDINET and extend it only for Japan-specific needs. This is the right move. It creates a single, unified taxonomy that works for preparers and users, minimises duplication, and keeps Japanese disclosures fully comparable with global peers.
In our response, we also highlighted why alternatives would fall short. Building a standalone taxonomy would waste effort and fragment comparability, while running two taxonomies side by side would only create confusion for filers and users. In contrast, a unified entry-point model, with one Inline XBRL report serving multiple requirements, is efficient, future-proof, and aligns with XBRL best practice.
Practicalities matter too. We encouraged the FSA to map out how additional taxonomy elements will be phased in over time, and to provide clear guidance on how the ISSB taxonomy will be maintained, updated, and integrated with existing EDINET filing rules.
Japan’s plan is pragmatic, internationally aligned, and sets a strong example for other jurisdictions. Sustainability data is only useful if it’s digital and comparable across markets, and the proposed approach delivers both.
