Environmental Information (TCFD Disclosure)

Environmental Vision and Policy

Recognizing that resources are limited, JPX has created its Environmental Vision and Environmental Policy to aim for a sustainable economy where “economic development” and “environmental conservation” go hand in hand.

Environmental Vision

Japan Exchange Group will maintain and further develop the capital market into one that can coexist with the environment, by creating a clear action plan on environmental issues and making ongoing efforts to reduce our environmental footprint.

Environmental Policy

1. Contributing to a decarbonized economy
We will contribute to the decarbonization of the economy by eliminating 100% of our own GHG emissions.
2. Contributing to a circular economy
We will contribute to the development of a circular economy by reducing our resource consumption and waste output, as well as promoting green procurement.
3. Strong management of environmental policy
Recognizing action on the environment as an important management issue, we will continue to comply with all related laws, regulations and rules, and in addition, will enact dialogue with stakeholders and society through proactive disclosure of environmental information.
4. Encouraging environmental conservation initiatives
We will encourage environmental conservation initiatives across the whole of society through education to cultivate awareness of environmental issues.

Green Strategy

In its Medium-Term Management Plan 2024, published in April 2022, JPX set out an environmental strategy which it will push forward to support the shift to carbon neutrality in Japan both as a market operator and a business corporation. It also set “Aim for carbon neutrality in securities market operations (our value chain) by 2030” as its long-term ESG target. Please see page 13 of the Medium-Term Management Plan 2024 for details.

Medium-Term Management Plan

Contributing to a decarbonized economy

Our targets to achieve carbon neutrality

Autumn FY2021: TSE Building electricity contract switched (achieved)
End of FY2024: Energy consumed by JPX Group to be 100% renewable using self-generated energy; carbon neutrality achieved

Renewable energy

From October 1, 2021, JPX put in place measures to cut CO2 emissions at the Tokyo Stock Exchange Building and Osaka Securities Exchange Building, including switching electricity contracts. As a result, we have cut Group-wide GHG emissions (Scopes 1 and 2) by around 30% compared with FY2020.

Starting November 2023, we are also receiving renewable energy usage certificates on a long-term basis through a Virtual PPA with Marubeni Power Retail Corporation.

Holding our own energy generation facilities (green bond issuance)

As well as using electricity derived from renewable energy, the Group also generates its own renewable energy.

Ibaraki Prefecture, online from August 2022

Chiba Prefecture, online from October 2022

The Group has acquired facilities such as solar power generation facilities that co-exist with agriculture on farmland (see photos) and a biomass power generation facility that uses discarded cooking oil for fuel, using proceeds from the green bond issued in June 2022. The solar power facilities came online from summer 2022 and the biomass facility came online in April 2023.

In October 2022, JPX signed an MoU with Mitsubishi HC Capital Energy for joint study regarding the development, ownership, and operation of solar power plants to supply renewable energy to JPX's offices and data centers.

We are looking to contribute to a decarbonized and circular economy by utilizing mainly idle or discarded farmland for power generation and generating renewable energy using secondary resources (recycled fuel).

Japan Exchange Group Green Bond Framework (April 2022) icon-pdf

This framework has received an external review from Rating and Investment Information, Inc. (R&I).

R&I Green Bond Assessment/Second Opinionicon-block

Digitally Tracked Green Bond

The green bond that JPX issued in June 2022 was in the form of a publicly offered STO (Security Token Offering). An STO is a scheme to raise funds using "security tokens," which are tokens issued by electronic means such as blockchain that represent stocks, bonds, or other securities, in place of conventional securities.

Cooperation in the Issuance of Japan's First Wholesale Digitally Tracked Green Bond

In addition, to improve the transparency of use of proceeds of the funds raised by the Digitally Tracked Green Bond, in August 2022, JPX Market Innovation & Research, Inc. (JPXI) launched the "Green Tracking Hub" in collaboration with several partners. This is a system that automatically measures the volume of electricity generated at the generation plants to which funds were allocated, and converts this into a volume of CO2 emissions reduced.

Green Tracking Hub (Japanese only)icon-block
Launch of Website for Visualization of Greenness Indicators of Digitally Tracked Green Bonds

Strong management of environmental policy

Disclosure in line with the TCFD Recommendations

JPX discloses environmental information in line with the TCFD Recommendations. Please see the TCFD disclosure page.

Governance, Strategy, Risk Management, Metrics & Targets (TCFD Disclosure)

Response to CDP

Below is JPX's latest response to CDP, from 2023. This page will be updated with the 2023 score when it is published, but in 2022 we received a score of B-.

JPX CDP Response 2023 icon-pdf

Encouraging environmental conservation initiatives

Tree-planting program

The TSE Listing Forest began in June 2004 in Yurihonjo, Akita Prefecture. Conservation activities have been carried out at the five-hectare plot in the hope that the exchange will grow and prosper along with the planted trees. In September 2019, we held a tree planting ceremony and lecture event in Yurihonjo to commemorate the 15th anniversary of the program.

Together with these conservation activities, JPX has worked alongside the local Yashima region, which has cooperated on these activities, in providing financial education. In a typical year, JPX offers on-site courses about how stock companies work at Yurihonjo Shiritsu Yashima Elementary School, Yurihonjo Shiritsu Yashima Junior High School and Akita Prefectural Yashima High School. An NPO established to run the JPX Entrepreneur Program under its own direction has initiated projects - for example at Akita Prefectural University and Akita Prefectural Nishime High School - with the collaboration of industry, academia, government, and financial sectors. The NPO has developed a finance and economics education program integrated throughout the local community, to the extent that in February 2019 it won an award from the Government’s Small and Medium Enterprise Agency.