Sustainability Standards Board of Japan (SSBJ)

The Sustainability Standards Board of Japan (SSBJ) is developing Japan's national sustainability disclosure standards based on the ISSB's IFRS S1 and S2, with final standards expected to form the basis for mandatory sustainability reporting for listed companies on the Tokyo Stock Exchange's Prime Market.

Established in July 2022 under the Financial Accounting Standards Foundation (FASF), the SSBJ is tasked with developing sustainability disclosure standards that are consistent with the ISSB's global baseline while incorporating Japan-specific considerations. The board released exposure drafts of its standards in March 2024, with final standards expected in 2025.

SSBJ Standards Structure

The SSBJ is developing three standards. SSBJ Standard No. 1 (General Requirements for Sustainability-related Financial Disclosures) corresponds to IFRS S1 and establishes the overall framework for sustainability disclosure. SSBJ Standard No. 2 (Climate-related Disclosures) corresponds to IFRS S2 and covers climate-specific requirements. SSBJ Standard No. 3 (Application Guidance) provides Japan-specific implementation guidance.

Key Adaptations for Japan

While the SSBJ standards are substantially aligned with ISSB standards, several adaptations reflect Japan's context. The standards incorporate references to Japan's Green Transformation (GX) strategy and the country's approach to energy transition. Scope 3 emissions disclosure includes transitional provisions recognising data availability challenges. The standards also address Japan-specific governance structures, including the role of statutory auditors (kansayaku).

Implementation Timeline

The Financial Services Agency (FSA) has indicated that mandatory SSBJ-aligned reporting will be required for companies listed on the TSE Prime Market, potentially from fiscal years beginning April 2027 or 2028. The phased approach will likely start with the largest companies (those included in major indices) before expanding to all Prime Market issuers.

Further Reading

• SSBJ — Official SSBJ website
• FSA Sustainability Disclosure — Regulatory framework

Related Topics

• Japan ESG Regulations
• IFRS S1 & S2
• TCFD\n