Environmental Information (TCFD Disclosure/Transition Plan)
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.
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
JPX utilizes PPAs and similar arrangements depending on the electricity demand at each site, in combination with the switching of electricity contracts and other measures to cut emissions at the Tokyo and Osaka head offices that were started in October 2021. As a result, in FY2023, 81% of electricity demand was covered by renewable energy.
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) |
 |
This framework has received an external review from Rating and Investment Information, Inc. (R&I).
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.
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.
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.
Response to CDP
Below is JPX's latest response to CDP, from 2024, which received a score of B.
JPX CDP Response 2024 |
 |
Mapping of Information Relating to Transition Plan in CDP Response |
 |
Information for the Net Zero Financial Service 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.
Member exchanges of the NZFSPA are required to publish information annually about their activities in regard to these commitments. Please find information about JPX's activities below.
As a corporate entity (exchange-focused)
Focus Area |
NZFSPA Target |
JPX Initiatives |
References |
Governance |
1.Exchanges should put appropriate governance structures in place to ensure accountability for and oversight of the development and execution of the NZFSPA commitments. |
Recognizing that addressing climate change is an important management issue, JPX Group has established a Sustainability Committee, with the Group CEO serving as Chair and the Group COO as Vice-Chair. The committee has analyzed how related issues affect business operations and is proceeding to address these. The Group has also established a system for adequately reporting basic policies and important matters associated with climate change to the Board of Directors, which in turn provides oversight of those basic policies and important matters as appropriate.
Specific activities:
- Deliberations by Sustainability Committee, reporting to board of directors
- Risk monitoring via company-wide risk management system
- Oversight of important matters such as progress of initiatives under Environmental Policy through specifying ESG (sustainability) as one of the main supervisory functions of the board of directors
- Appointment of executive officer in charge of sustainability
- Incentives for executive officers linked to sustainability
|
Annual Securities Report FY2023 (p20,62-63,95-96,105)
Medium Term Management Plan 2024 (p12,16)
JPX Report 2024 (p57,71)
Corporate Governance
TCFD Disclosure/Transition Plan
Environmental Activities
Response to Risk Management
CDP Response 2024 (p44-53)
|
2.Exchanges should ensure that relevant policies, procedures and training are implemented to support its efforts. |
In order to “contribute to the realization of an affluent society by promoting sustainable development of the market” as set out in its Corporate Philosophy, the Group works on initiatives to improve its corporate value with attention to the surrounding environment and societal issues and the Group’s relationship to them. The Group considers this an important management issue and formulates its management policies and plans accordingly.
Specific activities:
- Formulation of Environmental Vision and Environmental Policy
- Integration of these into debate such as when formulating Medium-Term Management Plans
- Development of procedures to identify and manage climate risks
- Provision of annual training/information provision for all officers and employees
- Study groups with government/related organizations (e.g., study group with MoE)
|
JPX Report 2024 (p57-59,69)
Medium Term Management Plan 2024
(p12,16)
Environmental Activities
JPX ESG Knowledge Hub "Practical Seminars for ESG Disclosure"
CDP Response 2024 (p18-19,46)
|
Emissions reductions & disclosure |
1.Exchanges should publicly disclose their climate actions annually as part of a transition plan. |
JPX has formulated a transition plan in reference to the TCFD Consortium's "Transition Plan Guidebook" and other guidelines and has published this using the framework of the TCFD Recommendations.
Specific activities:
- Publication of relevant activities in a transition plan
|
TCFD Disclosure/Transition Plan
|
2.Exchanges should measure and disclose their Scope 1, 2 and (where material) 3 emissions annually. |
JPX has been calculating and publishing its Scope 1 and 2 GHG emissions since FY2019 and Scope 3 since FY2020.
Specific activities:
- Calculation/publication of GHG emissions (Scopes 1, 2, and 3)
|
Environmental Data
JPX Report 2024 (p60)
CDP Response 2024 (p97-150)
|
3.Exchanges should commit to Scope 1, 2 and (where material) 3 emission reductions for their own operations. |
JPX Group has reviewed its approach to procuring electricity, which is the primary factor in its emissions. This move aims to switch 100% of electricity consumed throughout the Group to renewable energy by FY2024, and to achieve carbon neutrality (Scopes 1 and 2) across Group companies in the same time frame. The Group also calculates other CO2 emissions (Scope 3) and works to reduce GHG emissions while appropriately managing emissions throughout the value chain. Also, in its Medium-Term Management Plan 2024, the Group has set "aim for carbon neutrality in securities market operations by 2030" as a long-term ESG target.
Specific activities:
- Setting of target/management of progress (renewable energy 81% of electricity usage in FY2023; Scopes 1 and 2 down 83%)
|
Environmental Data
Environmental Activities
JPX Report 2024 (p60)
CDP Response 2024 (p97-150)
|
As an exchange operator (market-focused)
Focus Area |
NZFSPA Target |
JPX Initiatives |
References |
Transparency & education |
1. Exchanges should actively promote availability of high-quality climate information by producing guidance for issuers or undertaking initiatives that encourage climate-related disclosure (as may be relevant to the market). |
JPX is engaged in activities to promote sustainable activities and sustainability information disclosure among listed companies in cooperation with related parties both domestic and global.
Specific activities:
- Promotion of TCFD disclosure in Corporate Governance Code
- Creation of disclosure guidebooks for listed companies (Practical Handbook for ESG Disclosure, JPX-QUICK Anthology of ESG Issues)
- Creation of online content for listed companies (JPX ESG Knowledge Hub)
- Provision of ESG Bond Information Platform
- Cooperation/engagement with related parties both domestic and global (GFANZ Japan Chapter, TCFD Consortium, FSA Expert Panel on Sustainable Finance, IFRS Foundation, etc.)
- Publication of surveys (surveys of TCFD disclosure in Japan, etc.)
|
Corporate Governance Code
Support for ESG Information Disclosure
ESG Bond Information Platform
|
2.Exchanges should offer climate disclosure training at least annually. |
JPX works to provide information to listed companies through webinars and other means to promote disclosure in line with the TCFD Recommendations.
Specific activities:
- On-demand seminars on climate disclosure through JPX ESG Knowledge Hub and joint seminar series with ISSB
- Provision of online content on disclosure frameworks/standards (TCFD, ISSB, etc.)
- Joint holding of seminars on climate-related indices and other products
|
JPX ESG Knowledge Hub "Practical Seminars for ESG Disclosure"
ISSB page (in Japanese)
CDP Response 2024 (p89)
TCFD Consortium "Transition Plan Guidebook"
Seminar with FTSE Russell (in Japanese)
Seminar on S&P/JPX Carbon Efficient Index (in Japanese)
|
Products & services |
1.Exchanges should work to raise visibility for climate-themed products. |
As well as providing climate-themed products, JPX works to raise visibility of these products among institutional and individual investors.
Specific activities:
- Content on the carbon credit market and other climate-related products and services on the "TSE Money-bu!", JPX's owned media service for individual investors
- Provision of ESG Bond Information Platform for bonds including green and transition bonds
- Promotion of usage of Digitally Tracked Green Bonds (provision of Green Tracking Hub, etc.)
- Promotion of trading of electricity futures and LNG futures
- Initiatives toward creation/vitalization of the Carbon Credit Market (introduction of market maker scheme, etc.)
|
Medium Term Management Plan 2024 (p12)
ESG-related products
TSE Money-bu! ESG/SDGs (in Japanese)
JPX and JPXI Launch ESG Bond Information Platform
Green Bond Digital Tracking Wins Special Award at MoE's ESG Finance Awards Japan
Joint Provision of Linked Service for Spot and Futures Trading Related to Electricity
Carbon Credit Market
CDP Response 2024 (p90)
|
2.Exchanges should incorporate climate-related considerations into the development processes for products and services. |
Centered on its subsidiary JPX Market Innovation & Research, JPX aims to provide and popularize a diverse index lineup and strengthen functions related to the dissemination of ESG and other information with the aim of solving ESG and other societal issues.
Specific activities:
- Development of climate-themed indices
- Research/development regarding ESG information dissemination (JPX ESG Link, etc.)
- Research into expansion of Digitally Tracked Green Bonds
- Partnerships with external organizations with expertise in climate change
|
JPX Report 2024 (p39)
|
Policy, persuasion & engagement |
1.Exchanges should actively engage with local and global policy makers and standard setters to stay informed of and promote net zero aligned policies. |
JPX is supporting the transition to a decarbonized economy through cooperation with related parties both domestic and global.
Specific activities:
- Participation in government working groups (e.g., FSA's Expert Panel on Sustainable Finance and Financial System Council Working Group on Disclosure and Assurance of Sustainability-related Financial Information)
- Cooperation/co-hosted seminars with ISSB
- Cooperation with Sustainability Standards Board of Japan (SSBJ) (provision of information on the SSBJ standards)
- Contribution to the government's GX strategy through participation in GX League, operation of carbon credit market, etc.
- Hosting of roundtable series with Net-Zero Data Public Utility (NZDPU)
- Membership of IFRS Foundation's Integrated Reporting and Connectivity Council
|
CDP Response 2024
(p57-63,95)
Seminar series with IFRS (Japanese)
|
2.Exchanges should work towards mandatory climate-related disclosure in their markets. |
In January 2023 the Japanese government amended the Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc. to add an "Approach to Sustainability and Related Initiatives" section in said reports for disclosure of climate and other sustainability-related information. From March 2023, a "Working Group on Disclosure and Assurance of Sustainability-related Financial Information" under the FSA's Financial System Council is discussing the possible incorporation in statutory disclosures of the SSBJ standards, which are being formulated based on those from the ISSB, along with potential rules on assurance.
Specific activities:
- Provision of support to listed companies for mandatory climate disclosure through seminars and text-based educational content
|
JPX ESG Knowledge Hub
|
3.Exchanges should proactively engage with market participants, including through market awareness programmes, to promote the adoption of net zero commitments and transition plans among market participants. |
JPX is supporting the transition to a decarbonized economy through cooperation with related parties both domestic and global.
Specific activities:
- Policy engagement with financial industry and regulators through TCFD Consortium and GFANZ Japan Chapter
- Contribution to the government's GX strategy through participation in GX League, operation of carbon credit market, etc.
|
CDP Response 2024
(p58-59,95)
Carbon Credit Market
JPX Announces Endorsement of METI's "GX League Basic Concept"
Initiatives supported by JPX
|
Encouraging environmental conservation initiatives
Tree-planting program
The TSE Listing Forest began in June 2004 in Yurihonjo, Akita Prefecture. We carry out ongoing conservation activities at the7.3-hectare plot, including planting, weeding, and installing protection over winter in the hope that the exchange will grow and prosper along with the planted trees. To mark its 20th anniversary in 2024, we held a tree-planting ceremony, lectures, and other commemorative events in September together with local residents.
This project has also been certified for 63.7t of CO2 absorption (FY2024) under Akita Prefecture's "Akita Forestry: Carbon Dioxide Absorption Through Forest Development Certification System."
Together with these conservation activities, JPX has worked alongside the local Yashima region, which has cooperated on these activities, in providing financial education. 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.