Japan Exchange Group

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Number of listed companies
Domestic market capitalization
million US$

Japan Exchange Group

Name Japan Exchange Group
Country Japan
Number of listed companies 3824
Domestic market capitalization 6544303.49 million US$
SSE Partner Exchange Yes
Has annual sustainability report Yes

  • “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
  • Annual reports.
ESG reporting required 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 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 Yes

  • JPX published a “Practical Handbook for ESG Disclosure” (also in Japanese). The Handbook is to support listed companies who are choosing to work on ESG disclosure, linking their company’s mid- to long-term corporate value improvement to its sustainable growth.
  • On 3 June 2019, JPX announced the publication of the 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 the provision of non-financial information, on comply or explain basis. Find their corporate governance code here.
  • Compliance with the corporate governance code can be found here.
Offers ESG related training Yes
Market covered by sustainability-related index Yes

As of December 2017, TSE offers the following indices in collaboration with partner providers.
Has sustainability bond listing segment Yes

  • JPX launched a dedicated platform for Green and Social bonds on January 22, 2018. The platform allows issuers, at their discretion, to post information pertaining to Green and Social bonds, from among those listed on TOKYO PRO-BOND Market. If an issuer wishes to post information pertaining to a bond listed on TOKYO PRO-BOND Market through the platform for Green and Social bonds, the issuer is required to submit to TSE the information about green or social use of proceeds pertaining to said bond, and such information will be posted on the platform. In addition, issuers can post such information as external reviews, continued reporting after bond issuance, and other related information.
  • Japan’s Environmental Ministry issued Green bond guidelines in 2017, found here.
Has SME listing platform Yes
Women on boards mandatory minimum rule No
Additional information
  • 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.
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 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:

Criteria for Stock Exchange Database

The SSE maintains a database of sustainability activities for all stock exchanges that are either members of the SSE initiative and/or members of the World Federation of Exchanges. This database is the most comprehensive database of stock exchanges worldwide and contains data on all main stock exchanges. The information in this database is intended to inform investors and other stakeholders on the work stock exchanges are undertaking to advance sustainability in their respective markets.

The information provided in this database is based on publicly available information prepared by the SSE Secretariat with input from stock exchanges in most instances. Sources and explanatory notes on sustainability information have been included in individual Stock Exchange Fact Sheets. The criteria for each category can be found below.

While every effort is made to keep the information in this database up to date, please be aware that certain factors change frequently and therefore may not be exact, such as the number of listed companies or market cap.

Field

Criteria Considered
Country Country of primary residence or registration
Has signed the SSE Commitment Letter? To be considered an SSE Partner Exchange, the CEO or Chairperson of the exchange must sign an SSE commitment letter. Contact the SSE for more information if your exchange would like to join.
Has annual sustainability report? For a yes, stock exchanges must report, either in a stand alone report or integrated into their financial report, on their environmental and social impact and corporate governance.
ESG reporting required as a listing rule? For a yes, all three factors have been considered (environmental, social and governance) within the listing rules for some or all listed companies. This requirement may come from the regulatory authority or the exchange, depending on the market.
Offers written guidance on ESG reporting? For a yes, all three factors have been considered (environmental, social and governance). The SSE has developed a model guidance that all exchanges can use to develop their own guidance to issuers. For more details, click here.
Offers ESG related training? For a yes, training must have taken place in the previous 12 months, and must be interactive. The topic of the training must be on some area of sustainability.
Market covered by sustainability-related index? Sustainability-related indices may include environmental or social  indices, or ESG indices. This could include specific themes, such as low carbon indices, or general sustainability indices. The index must be specific to the market the exchange operates in (a region or world index is not included).
Has sustainability bond listing segment? For a yes, the exchange has developed the rules and regulations allowing for sustainability bonds to be listed, and provides a separate segment for listing making the bonds easy to find and identify.
Has an SME listing platform? For a yes, the exchange offers a listing platform specifically for Small-and-Medium sized enterprises.
Additional Information Additional Information captures exchanges’: sustainability section of websites,  sustainability products not captured under indices; information on future sustainability commitments and other information on the exchange
Organizational model of stock exchange Whether the exchange is listed or not, and when it was demutualized
Regulatory bodies The regulatory authority that sets listing requirements and capital market regulation for the exchange's market
Regulatory model

The extent to which exchanges have regulatory authority in their market. This may include:

  • Limited exchange SRO
  • Strong exchange SRO
  • Independent member SRO
  • Government (Statutory)
  • Non-SRO
About the stock exchange The location of the headquarters of the exchange, and any additional details about the stock exchange.