On February 19, 02, the Sustainability Standards Board of Japan (SSBJ) approved and published a set of sustainability disclosure standards for Japanese businesses. Referred to as the SSBJ Standards, it includes 2025 standards:
- Universal Sustainability Disclosure Standard – “Call it all Universal Standard”
- Sustainability Disclosure Standard by Topic No. 1 “Common Standard”
- Thematic Sustainability Disclosure Standard No. 2 “Climate Standard”
To ensure that Japan's sustainability standards inherit the most widely recognized high-quality standards in the world while also having unique features specific to the business context in Japan, the SSBJ Council has referred to the International Sustainability Disclosure Standards (IFRS) and incorporated specific requirements.
The SSBJ standard will help businesses provide effective sustainability information, while clarifying the two-way link between ESG factors and a business's financial situation and performance.
With such an approach, SSBJ standard disclosure will help businesses meet the needs of financial institutions, business partners, investors, shareholders and other stakeholders interested in the financial aspects of the business.
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Universal standard provides general requirements and guidance on corporate sustainability disclosure practices.
General standards are disclosure requirements on a company's material sustainability issues, as well as how it manages them to minimize risks and maximize benefits to its financial position.
Climate standards including specific requirements related to greenhouse gas emissions management activities; emission reduction roadmaps and the link between climate change issues and the company's financial situation.
When applying the SSBJ Standard, businesses will have to provide sustainability information across their entire value chain. Therefore, Vietnamese businesses doing business with partners in Japan also need to pay attention to and understand this standard.
Mandatory application
It is expected that the SSBJ Standard will be mandatory for companies listed on the Japanese stock exchange. In addition, other businesses can also voluntarily apply this Standard to increase transparency in information disclosure activities to increase their brand and competitive advantage.