Overview of JSS
Introduced: March 2025
Effective from: FY 2025 for Tokyo Stock Exchange (TSE) Prime Market companies (reports filed in 2026); phased expansion to Standard and Growth Market issuers through ~FY 2027
Last modified: March 2025 (final issuance of JSS)
Region(s): Japan
About JSS
Japan’s Financial Services Agency (FSA) and the Sustainability Standards Board of Japan (SSBJ) have launched the Sustainability Disclosure Standards of Japan (JSS) to mandate investor-grade climate and ESG reporting aligned with the ISSB’s IFRS S1 and S2.
The JSS consists of two core standards:
- JSS General Disclosures (aligned with IFRS S1)
- JSS Climate Disclosures (aligned with IFRS S2)
These standards replace Japan’s prior “comply-or-explain” TCFD guidance with voluntary reporting for Prime Market issuers starting FY 2025, gradually covering all listed firms by the end of the decade. The disclosures will be integrated into Annual Securities Reports, supporting market transparency, comparability, and Japan’s 2050 carbon neutrality goals.
Criteria for compliance
FY 2025
Voluntary reporting for all TSE-listed companies on the Prime Market (~1,800 companies)
FY 2026-2027
Phased rollout to Standard and Growth Market companies
By ~2030
All publicly listed companies
Foreign-listed issuers may fulfill requirements through equivalent disclosures in their home markets.
Compliance timelines
2022-2024
Voluntary TCFD-aligned reporting under “comply-or-explain” policy.
FY 2025
Voluntary JSS reports for Prime Market companies (submitted in 2026).
FY 2026-2027
Mandatory reporting for Prime Market companies, with Standard and Growth Market companies phased in.
Post-FY 2026
XBRL tagging expected to be required for machine-readable filings
Ongoing
SSBJ to expand disclosures as new ISSB-aligned topic standards are finalized
Disclosure requirements
Companies must report on:
- Governance, Strategy, Risk Management, and Metrics/Targets related to climate and ESG topics
- GHG emissions: Scope 1 and 2 mandatory; Scope 3 required if material
- Scenario analysis to assess climate-related risk resilience
- Internal carbon pricing, if used
- Progress toward emissions targets and climate transition plans
- Material ESG matters under JSS General (e.g. human capital, biodiversity, supply chain)
Key obligations
- Include sustainability disclosures in the statutory Annual Securities Report (filed through EDINET)
- Ensure board-level approval of disclosures
- Prepare for XBRL-tagged, machine-readable reporting by FY 2026 or later
- Maintain clear documentation of governance and risk procedures tied to climate strategy
Third-party assurance
There is currently no assurance mandate. However, Japan’s FSA and the Japanese Institute of Certified Public Accountants (JICPA) are expected to phase in limited assurance requirements on key metrics later this decade.
Penalties for non-compliance
- Correction orders and administrative penalties from the FSA
- Possible lawsuits for material misstatements under the Financial Instruments and Exchange Act
- Governance-related sanctions from the Tokyo Stock Exchange, including reputational consequences and listing risks
