Sustainable Finance Experts Meeting (30th)
Overview
The Financial Services Agency (FSA) described its efforts to advance sustainable finance, maintaining its policy while pursuing two complementary pillars: developing systems and frameworks, and deepening and exploring ways to activate the market. Initiatives included disclosure, talent development, transition finance, impact investment, social bonds, and carbon credit markets. Experts discussed the need to prioritize adaptation and resilience, system-level investment, talent development, asset owners’ roles, regional finance, and substantive impact in light of geopolitical risks, energy security, AI, climate change, and natural and social challenges.
Key points
- The FSA maintained its policy of advancing sustainable finance regardless of changing circumstances.
- The framework for advancing sustainable finance was organized around two pillars: developing systems and frameworks, and deepening and exploring ways to activate the market.
- Japan’s sustainability investment balance grew from approximately 310 trillion yen in 2020 to approximately 672 trillion yen in 2025.
- The discussion identified adaptation and resilience, substantive impact, connecting workforce skills to practical work, and a system-level perspective as future challenges.
Overview
The 30th meeting of the Sustainable Finance Experts Meeting reviewed the FSA’s current efforts and discussed the significance of sustainable finance and future challenges in the current environment, drawing on the Fifth Report.
The FSA explained its policy of supporting proactive efforts aimed at increasing public well-being through the sustainable growth of companies and the economy and stable asset formation, as well as improving medium- to long-term investment returns and corporate value.
Experts said sustainable finance should be viewed holistically and over the long term, addressing interconnected challenges involving not only environmental issues but also geopolitics, energy, AI, population decline, regions, nature, and human rights.
Impact
Disclosure under SSBJ Standards and third-party assurance are expected to improve the quality of Japanese companies’ disclosures and facilitate dialogue with global investors.
The initiative aims to encourage collaboration among diverse stakeholders, redirect financial flows toward sustainable investment and financing, support the transition to new industrial and social structures, and realize a sustainable economy and society.
Opinions from the meeting were to be compiled, reviewed as a summary of views from the experts meeting, and then published on the FSA website.
Details
Work to develop systems and frameworks includes a disclosure system based on SSBJ Standards, assessing market practices related to the Code of Conduct for ESG Evaluation and Data Providers, promoting the sound development of carbon credit markets, and managing climate-related financial risks. The proposed phased introduction of mandatory disclosure for companies listed on the Tokyo Stock Exchange Prime Market would begin with companies with market capitalization of 3 trillion yen or more for the fiscal year ending March 2027, followed by those with 1 trillion yen or more in 2028 and 500 billion yen or more in 2029.
Efforts to activate the market included the Asia GX Consortium, the Impact Consortium, and a survey of the social bond market. The Asia GX Consortium was established in October 2024, and the Impact Consortium’s four working groups are active in data and indicators; market research and development; regional initiatives and practice; and promotion of public-private collaboration.
Talent development emphasizes not only specialized knowledge but also coordination across departments, dialogue, and links to finance and business. Three talent categories were identified: specialists, implementation personnel, and strategic leaders. The discussion also raised adaptation finance, resilience, regional finance, impact measurement, the role of asset owners, connections with AI and digital assets, and the creation of green markets as challenges.