Partnerships with Related Organizations
At Japan Exchange Group, Inc.(JPX), as well as encouraging sustainable practices among our listed companies and market participants, we also support a number of global and domestic organizations working to encourage sustainable investment and sustainable finance.
Sustainable Stock Exchanges (SSE) Initiative
The SSE initiative is a platform for stock exchanges to explore and deliberate ways and means toward building sustainable societies through collaboration with investors, listed companies, and other capital market stakeholders.
It is organized by the UN Conference on Trade and Development (UNCTAD), the UN Global Compact, the UN Environment Programme Finance Initiative (UNEP FI), and the Principles for Responsible Investment (PRI).
JPX announced its participation as a partner exchange on December 6, 2017, and has been proactively taking part in the Initiative’s work to promote sustainability.
In addition, in June 2019, we published a Japanese translation of the SSE’s "Model Guidance for Companies on Reporting on ESG Information" as a reference guide for listed companies.
Task Force on Climate Related Financial Disclosures (TCFD)
TCFD is a non-governmental task force set up by the Financial Stability Board. It encourages individual companies and financial institutions to identify and disclose financial risks and opportunities stemming from climate change. Hundreds of financial institutions, corporates, governments and international organizations around the world have declared their support for the recommendations that the TCFD published in June 2017, including a fast increasing number in Japan.
JPX declared support for the TCFD’s recommendations in October 2018 and has been working since then to further increase awareness in Japan, including holding a number of events to discuss the recommendations. In addition, from May 2019, JPX has been taking part in a TCFD Consortium to discuss how the TCFD recommendations can be implemented.
Below are more details on some of the work JPX has been doing in this area.
World Federation of Exchanges (WFE)
WFE is a global industry association for exchanges and clearing houses. Its various initiatives include publishing policy papers, conducting surveys and research, and compiling and providing statistical data on capital markets. WFE also supports market infrastructure development through information sharing among member exchanges and technical support for emerging exchanges. In its recent activities, WFE is focusing on themes such as exchanges’ role in the data business, CCPs and their role in systemic safety, ESG, and the appropriate market structure for new technologies.
From 2018 to 2020, JPX served as vice chair of WFE's Sustainability Working Group and actively participated in its work. This included revising the “ESG Guidance and Metrics” guidelines on how exchanges can encourage ESG disclosure, the new version of which was published in 2018, and developing the five “Sustainability Principles”, which WFE published in October 2018.
JPX has served as a member of the WFE Board of Directors many times, and with Director & Representative Executive Officer, Group CEO Yamaji Hiromi a member since 2023, is committed to an even higher level of participation in all of WFE's work including sustainability-related projects.
Japan Impact-driven Financing Initiative
”Japan Impact-driven Financing Initiative” is an initiative to promote impact investment through cooperation and collaboration between diverse and multiple financial institutions that believe that the purpose of financial institutions is to actively address social and environmental issues, holistically understanding impact.
JPX has been a Supporter of the initiative since November 2021.
GX League
The GX League (GX: green transformation) was established by the Japanese Ministry of Economy, Trade and Industry (METI) as a forum for companies working proactively on GX to cooperate with similarly-minded government ministries/agencies, academic institutions, and financial institutions as one unit to reach the goal of carbon neutrality by 2050, through discussions on transforming the socio-economic system as a whole and practical testing in order to build new markets. As of April 2024, companies representing over 50% of Japan's GHG emissions are participating, and JPX has been a member since the League's launch in FY2023.
In connection with the above, as part of METI's GX League-related operations for FY2024, Tokyo Stock Exchange plans to add GX Credits (excess emissions reductions from quotas issued by the voluntary GX League emissions trading program) to products eligible for trading on the Carbon Credit Market.
Net Zero Financial Services Providers Alliance (NZFSPA)
JPX joined the NZFSPA in December 2023. The NZFSPA is a global group of financial service providers committed to supporting the goal of global net zero greenhouse gas emissions by 2050 or sooner, in line with the ambition to limit the global temperature increase to 1.5°C above pre-industrial levels. Through its membership of NZFSPA, JPX will further intensify its work toward the goal of net zero.
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