Japan Exchange Group
Number of listed companies
Domestic market capitalization
6,222,825 million US$
SSE Partner Exchange
Has annual sustainability report
- "Environment and Regional Communities" and "Engagement with Society" sections in the Annual Report for 2017 and 2016. "Ensuring the sustainability of corporate value" section including subsection on "relationships with society and the natural environment" in 2014 and 2015 Annual Report. CSR section (including environment) in 2013 Annual Report
ESG reporting required as a listing rule
- If any environmental or social information is deemed to have a remarkable effect on investors’ investment decisions, it must be immediately disclosed using TDnet as required by the Exchanges’ Listing Rule and the issuer must file a material change report on TDnet if a change or correction should be made to the information disclosed.
- The Exchange requires every listed company to prepare a report on corporate governance, which provides investors with information on corporate governance in a comparable format.
- The Ministry of the Environment issued Environmental Reporting Guidelines in 2007.
Has written guidance on ESG reporting
- 3 June 2019, JPX announced Publication of Japanese Translation of "Model Guidance for Companies on Reporting on ESG Information". Download the Japanese translation here.
- Corporate Governance Code incorporated into the Tokyo Stock Exchange listing rules not only sets forth comprehensive principles on governance issues, but also calls for taking appropriate measures to address sustainability issues, including provision of non-financial information, on comply or explain basis. Find their corporate governance code here.
- Compliance to the corporate governance code can be found here.
Offers ESG related training
- JPX and TSE offer research and booklets, e-learning and seminars/events on corporate value improvement, roles of an independent director, analysis on trends of governance structure at listed companies, integrated reporting and responsible investment (as of March 2018)
- Training program for company executives (in Japanese)
- E-learning (in Japanese)
- Responsible Investment event (in Japanese)
- Briefing on methodology for gender specific thematic listings (in Japanese)
- 19 July 2019: One Day Stewardship and ESG Seminar with ICGN
- 8 March 2019: Ceremony and Symposium on the Occasion of International Women's Day
- 12 Feb 2019: JPX Co-hosted symposium on the TCFD Framework, welcoming Mary Schapiro, Special Advisory to the Chairman of the TCFD
- 5 Nov 2018: JPX hosted Mark Carney, Governor of the Bank of England and Chair of the FSB for a discussion with issuers and investors on the FSB's Task Force on Climate-related Financial Disclosures (TCFD)
- 4 Sept 2018: Symposium on responsible business conduct and ESG investment
- A list of events co-hosted or supported by JPX can also be found here.
Market covered by sustainability-related index
- As of December 2017, TSE offers the following indices in collaboration with partner providers.
- JPX-Nikkei Index 400
- JPX-Nikkei Mid and Small Cap Index
- S&P/TOPIX 150 Carbon Efficient Index
- S&P/TOPIX 150 Carbon Efficient Select Index
- S&P/TOPIX 150 Fossil Fuel Free Index
- S&P/TOPIX 150 Fossil Fuel Free Carbon Efficient Index
- S&P/TOPIX 150 Fossil Fuel Free Carbon Efficient Select Index
- S&P/TOPIX 150 ESG Index
- JPX/S&P CAPEX&HUMAN CAPITAL INDEX
Has sustainability bond listing segment
- Although there is not a separate listing segment, the Tokyo Stock Exchange does offer a dedicated platform for Green and Social bonds that allows issuers to post information pertaining to Green and Social bonds when listed on the PRO-BOND market. This information may include green or social use of proceeds, external reviews, and continued reporting after the issuance.
- Japan's Environmental Ministry issued Green bond guidelines in 2017, found here.
Has SME listing platform
- Mothers, since 2006
- TSE and the Ministry of Economy, Trade and Industry (METI) annually select listed companies in recognition of outstanding efforts in promoting women empowerment and employee health and productivity.
- TSE operates an infrastructure fund market to facilitate investment in renewable energy facilities and other infrastructure.
- Sustainability section of the website
- List of partners can be found here.
Organizational model of stock exchange
- Listed company for profit; TSE & OSE demutualized in 2001
Strong Exchange SRO Model
- The Financial Instruments and Exchange Act (FIEA) requires financial instruments exchanges to fulfill self-regulatory functions. Japan Exchange Regulation (JPX-R) is a self-regulatory organization established by JPX, to perform self-regulation on behalf of TSE and Osaka Exchange. Independence and fairness of JPX-R is assured by many arrangements, including its organization structure where a majority of board of governors is comprised of outside governors. At the same time, JPX-R can leverage its proximity to the market operators and expertise across corporate group, and this enables JPX-R to respond swiftly to new market developments.
About the stock exchange
Location: Tokyo, Japan.
- JPX offers Japan's most comprehensive integrated market infrastructure, with its business domain covering cash and derivatives market operation, self-regulation, and clearing. Tokyo Stock Exchange is home to more than 3,600 companies and a wide variety of ETP and REIT products, while Osaka Exchange provides highly liquid derivative products. In addition to efficient, stable and transparent market mechanisms offered by two bourses, self-regulation at Japan Exchange Regulation and CCP functions provided by Japan Securities Clearing Corporation also contribute to trust and confidence in its market infrastructure. JPX also drives efforts to enhance corporate value and sustainability, through advancing corporate governance reforms and offering ESG related indices and products. For more information about JPX and JPX subsidiaries:
|Ownership of Exchange (Shares >4% only)||Share|
|Baillie Gifford & Co.||7.00%|
|State Street Global Advisors Inc.||4.70%|