Japan Exchange Group, Inc.

Exchange entity Japan Exchange Group, Inc.
Conducts business in Japan
Number of listed companies (dec./16, WFE) 3,604
Domestic market capitalization (in Millions USD, dec./16, WFE) 6,222,825
Has signed the SSE Commitment Letter? Yes
Has prepared SSE Communication to Stakeholders? No
Requires ESG reporting as a listing rule? No;
  • 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 adn 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.
Offers written guidance on ESG reporting? No
  • 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? Yes
  • JPX and TSE offer research and booklets, e-learnings 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)
  • ESG E-learning (in Japanese)
  • Responsible Investment event (in Japanese)
  • Briefing on methodology for gender specific thematic listings (in Japanese)
Provides sustainability-related indices? Yes; As of December 2017, the Tokyo Stock Exchange offered the following indices in collaboration with partner providers:
Has sustainability bond listing segment? No
  • 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. The platform can be accessed here.
  • Japan's Environmental Ministry issued Green bond guidelines in 2017, found here.
Additional Information
    • Tokyo Stock Exchange and the Ministry of Economy, Trade and Industry (METI) annually select companies in recognition of outstanding efforts in promoting women empowerment and employee health and productivity.
    • Tokyo Stock Exchange operates an infrastructure fund market to facilitate investment in renewable energy facilities and other infrastructure.
    • JPX established Sustainable Committee that directly reports to Akira Kiyota, Group CEO on 1st July 2018.
    • For more information on JPX corporate group and its sustainability initiatives, please look at the Annual Report and CSR Activities.
Organizational model of stock exchange
  • Listed company for profit; TSE & OSE demutualized in 2001
Regulatory bodies
Regulatory model   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 development
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%