Japan publishes IFRS aligned sustainability standards

Last week the Sustainability Standards Board of Japan (SSBJ) rolled out its first-ever sustainability disclosure standards. They closely mirror the International Sustainability Standards Board (ISSB) frameworks—IFRS S1 and S2—while adding a few jurisdiction-specific tweaks.
The SSBJ standards cover general sustainability disclosures, climate-related reporting, and the overall application of sustainability rules. Companies that stick to the full ISSB-aligned approach will produce reports that seamlessly match global expectations. But there’s some flexibility—Japan’s framework allows for certain local alternatives, meaning disclosures might vary slightly depending on how companies choose to apply the rules.
Right now, adoption is voluntary for any company looking to get ahead, with the first reporting period kicking off immediately. For firms listed on the Tokyo Stock Exchange (TSE) Prime Market, mandatory adoption is expected down the line under Japan’s securities regulations, although no official date has as yet been announced. To ease the transition, the SSBJ is offering some relief measures for first-time adopters and will be rolling out additional guidance and educational materials soon. Plus, it’s committed to keeping the standards updated in line with future ISSB changes.
While internationally aligned standards are a big boon for Japan’s sustainability reporting, helping investors and regulators get reliable, comparable ESG data, we are waiting to see a fixed date for implementation, and an associated digital mandate, utilising the official ISSB XBRL taxonomy.
More details are available here from the SSBJ.