Japan to require 4,000 companies to disclose climate risks

FSA to first apply rules to listed companies on Tokyo 'prime' market next year

Japan's Financial Services Agency is developing climate risk disclosure rules that will apply to around 4,000 companies, starting in April 2022. (Photo by Yumi Kotani)

Nikkei staff writers

October 5, 2021 18:07 JST

TOKYO -- Japan's financial watchdog will require large companies to report their greenhouse gas emissions and make other climate-related disclosures, Nikkei has learned.

The new initiative from the Financial Services Agency is expected to cover around 4,000 companies, including those listed on the Tokyo Stock Exchange, and will likely be enforced from April 2022, along with the TSE's plans to divide its stock market into three segments: prime, standard, and growth.