TSE Top-Tier Firms to Be Asked to Give More Climate-Change Info

Politics

Tokyo, March 31 (Jiji Press)--Japan’s Financial Services Agency on Wednesday unveiled a draft of is revised corporate governance guidelines calling on companies to be listed on the Tokyo Stock Exchange’s planned new top-tier section to disclose more information on their efforts for tackling climate change.

The draft was submitted to a panel of experts on the day. The guidelines are intended to secure transparency in business management.

With environmental issues attracting attention across the world, the Japanese government has set a goal of reducing the country’s greenhouse gas emissions to effectively zero by 2050. With the revised guidelines, the FSA aims to encourage major Japanese companies to redouble efforts in the fight against climate change and attract stepped-up investment from the rest of the world.

The TSE plans to create the new top-tier section, “Prime,” in April 2022.

The draft asks Prime section companies to disclose business risks stemming from possible river flooding and other disasters linked to global warming, as well as their strategies aimed at reaping profits from the decarbonization drive, based on the Task Force on Climate-Related Financial Disclosures, an international framework.

[Copyright The Jiji Press, Ltd.]

Jiji Press