March 1, 2023
On March 1 (Wed.), Mr. Nishimura Yasutoshi, Minister of Economy, Trade and Industry, received a courtesy call from Mr. Emmanuel Faber, Chair of the International Sustainability Standards Board (ISSB) of the International Financial Reporting Standards (IFRS) Foundation.
On March 1 (Wed.), Minister Nishimura received a courtesy call from ISSB Chair Emmanuel Faber, who was visiting Japan. During the meeting, they exchanged views on the Exposure Drafts (S1 and S2) of the IFRS Sustainability Disclosure Standards, financed emissions, and other topics.
Exposure Drafts (S1 and S2) of the IFRS Sustainability Disclosure Standards
In response to the increasing importance of sustainability-related information in recent years, the ISSB is considering a global baseline of sustainability disclosure standards consisting of the General Requirements for Disclosure of Sustainability-related Financial Information (S1) and Climate-related Disclosures (S2).
METI has communicated with the ISSB on several occasions and has submitted a written opinions on the exposure drafts. At today's meeting, the two leaders exchanged views on the finalization of the exposure drafts, which is scheduled for the first half of 2023.
Financed emissions are greenhouse gas emissions from investors of financial institutions. Some financial institutions are concerned about the possibility of a temporary increase in financed emissions due to the provision of funds to industries with high emissions, and may refrain from investing in the decarbonization of GHG-intensive industries.
To address this issue, METI, the Financial Services Agency, and the Ministry of the Environment, together with ten global private financial institutions and other organizations, have launched the Sub-Working Group on Financed Emissions for Promoting Public-Private Transition Finance.
- Written Opinions for the Study Group on Disclosure Policies for Non-financial Information
- Paper Released on Creating an Enabling Environment to Scale-up Transition Financing to Accelerate Decarbonization of Hard-to-Abate Sectors (February 21, 2023)
- Parliamentary Vice Minister Satomi Receives a Courtesy Call from Mr. Emmanuel Faber, Chairman of the ISSB, IFRS Foundation (October 31, 2022)
- Sub-Working Group on Financed Emissions for Promoting Public-Private Transition Finance (in Japanese)
Divisions in Charge
<Inquiries about the ISSB>Corporate Accounting, Disclosure and CSR Policy Office, Economic and Industrial Policy Bureau
<Inquiries about financed emissions>Environmental Economy Office, Industrial Science and Technology Policy and Environment Bureau