In March 2025, the Sustainability Standards Board of Japan (SSBJ) finalized its sustainability disclosure standards, aligning closely with the International Sustainability Standards Board’s (ISSB) IFRS S1 and S2. These standards are set to become mandatory for listed companies in Japan, encompassing disclosures on governance, risk management, strategy, and metrics related to sustainability and climate. The SSBJ introduced three standards: a Universal Sustainability Disclosure Standard, and two Theme-based Standards focusing on General and Climate-related Disclosures, respectively.

This development follows Japan’s ongoing efforts to enhance corporate transparency in sustainability reporting. Since 2021, the Tokyo Stock Exchange has required prime market-listed companies to provide climate-related disclosures based on the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. The SSBJ, established in 2022 under the Financial Accounting Standards Foundation, aims to ensure international comparability by aligning with ISSB standards while incorporating jurisdiction-specific alternatives where necessary.