Companies in TSE Main Section to Disclose Climate Change Risks

Economy

Tokyo, April 4 (Jiji Press)–Companies listed on the new prime section of the Tokyo Stock Exchange, created Monday as part of the TSE’s realignment, are gearing up to disclose climate change-related business risks to comply with a request of the exchange operator to do so.

The TSE’s application aims to meet the demand for information from institutional investors around the world and to attract new investment.

The TSE revised its corporate governance code last year to include a call for Prime section companies to disclose climate change risks. The clause was included based on a recommendation from the Task Force on Climate-Related Financial Disclosures, a task force comprised of finance officials from major countries.

Companies with March fiscal year ends are expected to submit their first climate change risk reports to the TSE this summer, and companies that do not submit reports will be asked to give reasons.

Steel producer JFE Holdings Inc. is considered a pioneering example of companies disclosing climate change risks. In its 2019 Corporate Social Responsibility Report, the company predicted that the demand for special steel used in the internal combustion engines of gasoline cars will be practically stable between 2020 and 2050, while the demand for steel plates electromagnetic fields used in electric vehicles will increase. sevenfold.

[Copyright The Jiji Press, Ltd.]

Jiji Press