Inauguration of a Study Group on Disclosure Policies for Non-financial Information

1. Purpose and background

In recent years, non-financial information has become increasingly important worldwide in terms of corporate disclosure. Typical examples include information on ESG (environmental, social, and governance) matters and MD&A (management's analyses regarding the financial, business performance, and cash flow situations). As a result of this trend, large companies and many other companies inside and outside Japan are now committed to disclosing non-financial information through various media.

In addition, the importance of non-financial information continues to grow. This can be seen in ongoing active moves such as merger of organizations and releasing of joint statements, and moves toward the IFRS Foundation's establishment of the International Sustainability Standards Board. In this way, we are in the midst of global changes regarding such policies.

Against this background, it is important to share information on global trends regarding non-financial information and policies related to it, and discuss what directions policies should take in order to achieve high-quality disclosure of such information in Japan and the rest of the world.

The study group will share understanding regarding directions for disclosure policies for non-financial information, and discuss approaches to disclosure and disclosure media that will lead to high-quality dialogues with the users of such information. It will also aim to accurately communicate Japan's standpoint regarding the disclosure of non-financial information and policies related to it, in order to improve the country's international rating regarding disclosure of non-financial information.

Ahead of the inauguration of this study group, METI inaugurated a Study Group on Dialogues that Contribute to Long-term Corporate Management and Investment for Creation of Sustainable Corporate Value (SX Study Group) on May 28 to discuss the approaches to long-term corporate management and investment that incorporate social sustainability, and dialogues and disclosure of specific non-financial information that will contribute to them.

2. Members, etc.

• See the Appendix (in Japanese)(PDF:150KB)

3. Schedule, etc.

The first session will be held on June 10 (Thu.). The study group will then be convened around once a month.

The study group will be conducted privately in order to ensure that its members can exchange views openly and freely, but the materials and summaries of the minutes will be released before and after the meetings.

Division in Charge

Corporate Accounting, Disclosure and CSR Policy Office, Economic and Industrial Policy Bureau