Japan’s SSBJ Launches First Sustainability Disclosure Standards Aligned with ISSB Guidelines

The Sustainability Standards Board of Japan (SSBJ) has introduced its first-ever sustainability disclosure standards, aligning closely with the International Sustainability Standards Board (ISSB)’s IFRS Sustainability Disclosure Standards. This move ensures international comparability in Japan’s corporate ESG reporting.

Key Disclosure Frameworks

The newly launched SSBJ Standards consist of three core components:

• Application Standard – Outlines general requirements for sustainability disclosures.
• General Disclosures – Covers sustainability-related risks and opportunities, following ISSB’s IFRS S1 framework.
• Climate-related Disclosures – Guides reporting on climate risks, based on IFRS S2.

By aligning with ISSB frameworks, Japan’s new standards will help listed companies meet global investor expectations while maintaining domestic regulatory considerations.

Strengthening ESG Reporting in Japan

Established in July 2022, the SSBJ has been instrumental in shaping Japan’s sustainability reporting landscape. The new standards are expected to apply to companies listed on the Tokyo Stock Exchange’s Prime Market, reinforcing Japan’s commitment to transparent ESG reporting.

SSBJ Chair Yasunobu Kawanishi acknowledged industry contributions in refining the standards:

“We express our sincere gratitude to everyone who responded to our Exposure Drafts. Based on this feedback, we have further reduced potential differences between SSBJ and ISSB Standards. Some differences remain, but we will continue monitoring disclosure practices in Japan and internationally.”

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Global Endorsement for Japan’s ESG Initiative

The ISSB welcomed Japan’s alignment with international sustainability frameworks. Sue Lloyd, Vice Chair of ISSB, praised the move, stating:

“The ISSB warmly welcomes SSBJ’s policy to align with ISSB Standards, ensuring global comparability. We look forward to continued engagement with the SSBJ and Japan’s Financial Services Agency (JFSA).”

By adopting ISSB-aligned reporting, Japan is strengthening its sustainable finance ecosystem, increasing transparency for investors, and maintaining its competitiveness in global markets. With ESG disclosures now a key driver of investment decisions, these standards position Japan as a leader in corporate sustainability and responsible governance.

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