Japan Financial Services Agency opened public comments on a draft amendment to its designation of Sustainability Standards Board of Japan (SSBJ) standards as the “Sustainability Disclosure Standards” referenced in Article 19-9(5) of the Cabinet Office Ordinance on Disclosure of Corporate Contents. The proposal would designate the SSBJ’s revised Universal Standard “Application of Sustainability Disclosure Standards” and Thematic Standards No. 1 “General Disclosure Standards” and No. 2 “Climate-related Disclosure Standards”, reflecting the International Sustainability Standards Board’s December 2025 amendments to IFRS S2 on greenhouse gas emissions disclosure. Key proposed changes to the climate-related standard include clarifying that Scope 3 Category 15 (Investments) emissions are limited to financed emissions and that greenhouse gas emissions related to derivatives may be excluded from Category 15. The draft also removes the requirement to disaggregate investees and counterparties using the Global Industry Classification (GICS) for additional financed emissions disclosures, and clarifies that jurisdiction-mandated calculation methods and global warming potentials that differ from the Greenhouse Gas Protocol Corporate Calculation and Reporting Standards (2004) and the latest IPCC 100-year global warming potential may be used for all or part of emissions reporting. The “Application” standard would be updated to refer to the latest SASB Standards version (last revised in December 2025), alongside other necessary conforming amendments across the SSBJ standards. Comments are due by 17:00 on April 30, 2026, and the revised designation is scheduled to take effect from the date of promulgation.
Japan Financial Services Agency 2026-03-31
Japan Financial Services Agency launches consultation on updating designated SSBJ sustainability disclosure standards aligned with IFRS S2 greenhouse gas amendments
The Japan Financial Services Agency has proposed amending its designation of Sustainability Standards Board of Japan standards as “Sustainability Disclosure Standards” to align with the International Sustainability Standards Board’s December 2025 amendments to IFRS S2 on greenhouse gas emissions disclosure. The draft would clarify treatment of Scope 3 Category 15 financed emissions, allow exclusion of derivatives-related emissions, remove Global Industry Classification-based disaggregation, and permit use of jurisdiction-mandated calculation methods and global warming potentials. The “Application of Sustainability Disclosure Standards” universal standard would also be updated to reference the latest Sustainability Accounting Standards Board Standards and make conforming changes.