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Japan mulling requiring disclosures on climate change risks

  • September 3, 2021
  • , Jiji Press , 9:31 a.m.
  • English Press

Tokyo, Sept. 3 (Jiji Press)–Japan’s Financial Services Agency is considering a plan to require publicly traded and other major companies to disclose information about climate change risks.
   

An FSA working group including investors and experts began deliberations Thursday on the plan to add environmental impacts on operations to the list of information to be included in securities reports.
   

The agency is aiming to revise related ordinances in the middle of next year based on the discussions, part of an effort to encourage companies to do more to reduce carbon emissions.
   

At Thursday’s working group meeting, many participants called for greater corporate disclosures of environmental risks.
   

“We need to give priority to discussions on climate change risk disclosures,” given a U.N. climate change conference in Britain in the autumn, an investment firm executive said.
   

An institutional investor said, “In the West and Asia, disclosures about sustainability have become the key to corporate evaluations.”
   

The FSA is also seeking to boost disclosures about nomination and remuneration committees as part of efforts to promote corporate governance.
   

The working group will also discuss disclosures regarding sustainability in general, including considerations for human rights during the stages of product manufacturing and service offering, as well as ensuring diversity. It will also discuss the use of information technology and disclosures in English.

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