Approach to Sustainability

Corporate Philosophy

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.

Given its business model, which is to provide attractive services along with a highly convenient, efficient, and transparent market that ensures public visibility and reliability, the Group considers it essential to work on initiatives that utilize market mechanisms. Accordingly, in line with its long-term vision, the Group set out “promoting sustainability that connects society and economy” as one of the three Focus areas in its Medium-Term Management Plan 2024 and has worked on related initiatives such as enhancing dissemination functions for sustainability-related information, calculating sustainability-related indices and listing related products, and advancing the creation of an emissions trading market.

Key Areas From the Perspective of Sustainability

To promote a more comprehensive approach to its initiatives, in the process of formulating the Medium-Term Management Plan 2027, the Group debated its key areas from the perspective of sustainability, settling on stable asset formation for households, stable market operations, promoting sustainable finance, addressing climate change, human capital management, and actions on cybersecurity.

Please see below for details of and related actions for each of the key areas.

Stable asset formation for households

Supporting stable asset formation for households is an essential element of helping to achieve happiness and welfare for each and every citizen.

JPX considers giving back to society through the provision of market functions and services to be an important mission, such as promoting self-led corporate value improvement at listed companies to sustain a virtuous cycle of growth and distribution as well as putting in place platforms that facilitate investment by a broad base of investors, thereby bringing together diverse investment decisions in pursuit of efficient and transparent price formation.

To this end, we are continuing to implement market and corporate governance reforms to support corporate value improvement efforts at listed companies, working to further expand the investor base through increased trading opportunities such as by enabling small-size investments and extending trading hours, and striving to become a comprehensive platform.

Key related actions

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Stable market operations

In order to achieve sustainable market development by providing creative and attractive services, JPX Group has a duty to carry out stable provision of market infrastructure, including the day-to-day execution of its duties, and the enforcement of appropriate self-regulation. JPX believes that by fulfilling this duty, it can secure the trust of market users.

While providing resilient and highly reliable system infrastructure and fulfilling our public responsibility by exercising trade-monitoring and self-regulatory functions during normal times, we are working hard to ensure the readiness of the entire Group for emergencies, such as building a BCP system and preparing for the unexpected.

With the objective of responding flexibly to changes in the environment in which the market operates, we will also work on communication and dialogue that takes into account the needs of market stakeholders, including investors, trading participants and listed companies, to ensure fairness and transparency.

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Human capital management

People are one of the most important assets we have for realizing our corporate philosophy and achieving sustainable improvements in corporate value.

In order to strengthen the traditional function of the exchange, that is to maintain stable market operations, while also proactively taking on challenges in new fields without being overly bound by this framework, JPX Group's fundamental human resources strategy entails hiring and developing both people who will underpin the further stabilization and sophistication of traditional exchange operations and those who will pioneer new sectors and fields, as well as creating an environment in which all employees can demonstrate their abilities.

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Promoting sustainable finance

We believe that sustainable finance, which takes a longer perspective than the short-termism of traditional finance, has an important role to play in contributing to the realization of an affluent society through sustainable market development.

To promote sustainability through the use of market mechanisms, JPX will provide sustainability-related information to listed companies and support them in disclosing their own such information, while also concentrating on enhancing accessibility to sustainability-related information for investors.

We also participate in discussions in Japan and globally concerning the role of finance in resolving societal and environmental issues as well as standards and other frameworks for disclosure of sustainability information.

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Actions on cybersecurity

As the organization responsible for financial market infrastructure, cybersecurity measures are extremely important for protecting the reliability and stability of the market and of providing safe and secure services to market users. For this reason, JPX Group considers them to be an essential element of stable market operations.

JPX Group has designated cyberattacks a significant management risk. Under a company-wide communication framework that includes the board of directors, it has established a dedicated team for cybersecurity (JPX-CSIRT), built a management system involving internal and external experts, and has been working to strengthen its resilience through continual review of its measures in line with the Basic Policy on Cybersecurity.

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Addressing climate change

When maintaining and strengthening its IT infrastructure to ensure the safety and fairness of transactions, or taking on challenges in new business areas, including digital transformation, JPX Group considers the efficient use and streamlining of energy, which could otherwise have an impact on climate change, to be an important mission.

JPX also sets out a commitment to contributing to a decarbonized economy in the Environmental Policy that it formulated recognizing that resources are limited, and is working on initiatives toward achieving carbon neutrality for Japan as a whole.

Even in areas where there are limits to what it can contribute as a company, JPX Group provides support for the transition to decarbonization by offering solutions that leverage market mechanisms, such as the development of a market for emissions trading and the raising and circulation of capital through the handling of related products.

Key related actions

As a market operator

As a business corporation

Related links

As a market operator

As a business corporation