Sustainability Disclosure Standards of Japan (JSS)

Sustainability Disclosure Standards of Japan (JSS): ssbj/fsa issb-aligned climate and sustainability disclosure for tse-listed companies, voluntary from fy 2025 and phasing to mandatory.

Jurisdiction
Status
active
Category
First deadline
Voluntary reporting for FY 2025 (filed 2026), progressing to mandatory
Who must comply
Applies initially to public companies listed on the Tokyo Stock Exchange Prime Market (roughly 1,800 companies), expanding later to Standard and Growth markets. Foreign issuers may use equivalent home-market disclosures.
Penalties
Non-compliance can lead to correction orders and administrative penalties from the FSA, potential lawsuits for material misstatements, and listing risks from the Tokyo Stock Exchange.

What it is

The Sustainability Disclosure Standards of Japan (JSS) are issued by the Sustainability Standards Board of Japan (SSBJ) under the Financial Services Agency (FSA). They implement ISSB-aligned sustainability and climate disclosure requirements for Japanese listed companies. The standards begin as voluntary reporting for Tokyo Stock Exchange Prime Market issuers and are set to become mandatory over a phased rollout.

Who must comply

Public companies listed on the TSE Prime Market (approximately 1,800 companies) are the initial focus, with later expansion to Standard and Growth market issuers. Foreign issuers may satisfy requirements using equivalent home-market disclosures.

What you must disclose

Companies must disclose mandatory Scope 1 and 2 GHG emissions, plus Scope 3 where material, along with governance, strategy, and risk management information. Reporting also includes climate scenario analysis, progress toward emissions targets, and material ESG matters.

Timeline

The JSS were introduced in March 2025 and are effective from FY 2025 for Tokyo Stock Exchange Prime Market companies, with reports filed in 2026. The framework begins as voluntary reporting for Prime Market issuers, then phases in expansion to Standard and Growth markets through around FY 2027, with all listed companies expected to be covered by around 2030.

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