Japan Financial Services Agency: Sustainable Finance

Constructing a sustainable society is a major challenge of our society today. The adoption of the Sustainable Development Goals (SDGs), the Paris Agreement and other important milestones has shown that it is essential to promote sustainable finance, which encourages the society to transit to new industrial and social structures and realizes a sustainable society.

In December 2020, the Financial Services Agency, Japan (FSA) established its Expert Panel on Sustainable Finance and has discussed various measures to promote sustainable finance. The Expert Panel positioned sustainable finance as "an infrastructure supporting sustainable economic and social system". Based on these discussions, the FSA is working on measures to promote sustainable finance; Enhancing Corporate Disclosure, Capital Market Functions, and the Role of Financial Institutions.

Sustainable finance in general

・The JFSA's Strategy on Sustainable Finance  (II-２ of "The JFSA Strategic Priorities July 2022-June 2023")

Links

・Overview of FSA’s initiatives

• (”The Second Report by the Expert Panel on Sustainable Finance”)

• The Council of Experts Concerning the Follow-up of Japan’s Stewardship Code and Japan’s Corporate Governance Code
  • Publication of the "Action Program for Accelerating Corporate Governance Reform:From Form to Substance"（April 26, 2023）
  • Finalization of the Revised Guidelines for Investor and Company Engagement（June 11, 2021）
  • Principles for Responsible Institutional Investors ≪Japan’s Stewardship Code≫ -To promote sustainable growth of companies through investment and dialogue- (Second revised version)(March 24, 2020)
• Working Group on Corporate Disclosure of the Financial System Council [Available in Japanese]  (June 13, 2022)
  • ”Summary of Report by the Working Group on Corporate Disclosure of the Financial System Council”
• Revisions of Japan's Corporate Governance Code and Guidelines for Investor and Company Engagement (April 6, 2021)
• TCFD Consortium
• Sustainablity Standards Board of Japan(SSBJ) (Financial Accounting Standards Foundation)
• JPX ESG Knowledge Hub（JPX）

• Technical Committee for ESG Evaluation and Data Providers, etc. (February 3, 2022) 
  • Finalization of “the Code of Conduct for ESG Evaluation and Data Providers (December 15, 2022)
  • Report of the Technical Committee for ESG Evaluation and Data Providers (July 12, 2022) 
• Working Group on Social Bonds [Available in Japanese] 
  • Social Bond Guidelines (October 26, 2021) 
• Sub-Working Group on Impact Indicators for Social Projects [Available in Japanese]
  • Publication of the "Examples of Indicators for Social Benefits of Social Projects”（November 11,2022）
• Response to the FSA’s Consulation on the Proposed Amendment of the Comprehensive Supervisory Guidelines for Financial Instruments Business Operators, etc. regarding ESG Investment Trusts(March 31, 2023)
• Publication of "Progress Report on Enhancing Asset Management Business 2022" (May 27, 2022)
• JPX Publishes English Version of First Report from Sustainable Finance Platform Development Working Group (January 31, 2022) (JPX)
• ESG Bond Information Platform (JPX) 

• Taskforce on Preparation of the Environment for Effective Transition Finance [Available in Japanese] 
  • Creating an Enabling Environment to Scale-up Transition Financing to Accelerate Decarbonization of Hard-to-Abate Sectors（May 1, 2023）
  • "Basic Guidelines on Climate Transition Finance" Announced （May 24, 2021） 
• Transition: Toward a Transition to Decarbonization (METI)
• GX League Basic Concept (METI)

• Working Group on Impact Investment 
• Impact Investing Roundtable［Available in Japan］ 
  • "Achievement in the First Phase and Challenges Ahead" [Available in Japan] (September 30, 2021)
• Appointment of Chief Sustainable Finance Officer (March 15, 2019)

• Participation in the TNFD Forum
•    Participation in the International Platform on Sustainable Finance (November 24, 2020)
• Nomination as a member of 2019/2020 Advisory Council for ICMA's Green Bond Principles and Social Bond Principles (October 21, 2019)
• FSA joins the NGFS (June 6, 2018)
• Participation in the Sustainable Insurance Forum (May 23, 2018)