Japan Exchange Group

Name	Japan Exchange Group
Country	Japan
Number of listed companies	3885
Domestic market capitalization	6198208.9 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 JPX Report 2022 JPX Report 2021 JPX Report 2020 JPX Report 2019 JPX Report 2018 JPX Report 2017 JPX Report 2016 Access the reports since 2013 here
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. Charter of Corporate Behavior
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. Compliance with the corporate governance code can be found here. See also: JPX ESG Knowledge Hub : Introductions to the Main ESG Disclosure Frameworks (japanese), ESG investment by institutional investors (japanese), Introductions to ESG Ratings Agencies and Data Providers, and ESG Finance Ratings Providers (Japanese)
Offers ESG related training	Yes 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). 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. See also for 2022 activities JPX ESG Knowledge Hub : ESG Information Disclosure Practical Seminar , List of Practical Seminars, Related seminars
Market covered by sustainability-related index	Yes JPX-Nikkei Index 400 JPX-Nikkei Mid and Small Cap Index JPX/S&P CAPEX&HUMAN CAPITAL INDEX. See also here (in Japanese)
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 Mothers, since 2006.
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	Financial Services Agency.
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: Japan Exchange Group, Inc. (Company Profile) Tokyo Stock Exchange, Inc. (Company Profile) Osaka Exchange, Inc. (Company Profile) Japan Exchange Regulation (Company Profile) Japan Securities Clearing Corporation (About JSCC)

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.

Japan Exchange Group

Results

Japan Exchange Group

Criteria for Stock Exchange Database

Field

Criteria Considered