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Japan
Mandatory from 2026Japanese Sustainability Standards Board Climate-related Disclosures Standard
Japan's Sustainability Standards Board (SSBJ) Climate-related Disclosures Standard (No.2) adapts IFRS S2 for use in Japan, requiring listed companies to disclose governance, strategy, risk management, and metrics on climate risks and opportunities. The standard emphasises financial materiality, ensuring comparability with global ISSB-aligned disclosures.
Key Requirements
- •Transition and physical climate risk disclosures aligned with IFRS S2
- •Governance, strategy, and risk management disclosures across multiple time horizons
- •Scenario analysis against at least two climate futures, including one 1.5°C-aligned
- •GHG emissions reporting (Scopes 1, 2, 3) aligned with GHG Protocol; financed emissions for financial institutions
- •Transition plan transparency: targets, CapEx alignment, use of offsets
- •Internal carbon pricing disclosure where applied
- •Climate-related opportunities, financial effects, and CapEx/financial alignment
- •Targets, base year, timeframes, and progress tracking on emissions reductions
Implementation Timeline
Mar 2025: voluntary adoption permitted
FY2026: mandatory for TSE Prime Market companies (beginning with those >¥3T market cap)
Progressive expansion to remaining Prime Market firms and additional sectors over time
Report Timing
Annual, generally aligned with the fiscal year ending March 31; disclosures integrated with or alongside financial reports (with limited reliefs).
Compliance Status
Mandatory from 2026Track your progress towards meeting the requirements and deadlines for this regulation.