BY GILLIAN SAWYER
After years of debate, planning and preparation, national sustainability reporting standards are taking effect that are intended to have a major impact on Japan’s energy sector, as well as how major corporations organize the consumption of their power supply.
In April, Japan also moved into a new phase of its GX policy framework, alongside new securities disclosure rules that will make SSBJ (Sustainability Standards Board of Japan) reporting mandatory for the largest listed companies. Together, the reforms are shifting corporate emissions management from largely voluntary reporting towards statutory disclosure and, for large emitters, carbon-pricing obligations.
SSBJ reporting standards require major companies to formalize and expand disclosures of its Scope 1, 2, and 3 emissions in securities reports, with heightened scrutiny on value-chain data. Eventually, it will likely turn emissions reporting into a part of supplier obligations.
The transition has led to an inconsistent effect across Japan’s corporate world. While some firms have the data necessary for meeting reporting requirements, they now face time pressure to reorganize that data within new frameworks. Others have more time to prepare their inaugural reports, but collecting the data from partner firms is proving difficult.
But there are voices that see the changes as optimistic for both efficiency and power prices. Which of these positions has the most merit?