Use of SASB Standards
63 using the standards; 38 creating an index
Among the TOPIX 100 companies, 63 use the SASB Standards, of which 38 (about 60%) have also created a SASB content index.
Materiality assessments
Up from 76% to 80%
Among the industry-specific disclosure topics defined in the SASB Standards, 80% were identified as material issues in materiality assessments by TOPIX 100 companies (up 4 points from 76% last year).
Disclosure of metrics
Up from 50% to 55%
Full or partial disclosure of SASB Standards indicators by TOPIX 100 companies increased 5 points to 55%, up from 50% last year.
Progress in corporate sustainability disclosures
The Sustainability Standards Board of Japan (SSBJ) was established in July 2022, and since then, it has been developing domestic standards that are consistent with the content of the IFRS Sustainability Disclosure Standards.
The draft Sustainability Disclosure Standards published by the SSBJ in March 2024 state that the SASB Standards, like the IFRS Sustainability Disclosure Standards, are a source of guidance that entities need to refer to and consider the applicability of.
The purpose of this survey is to clarify the current status of sustainability disclosure by Japanese companies and related challenges by surveying the extent to which disclosures by TOPIX 100 companies align with the SASB Standards.
By shining a light on areas where Japanese companies are successfully addressing the SASB Standards and where there is still room for improvement, these survey findings will provide information to help Japanese companies and investors adapt to future developments in sustainability disclosure standards.
Key findings
The SASB Standards are referenced or used by 63% of TOPIX 100 companies, and about 60% of those companies provide a SASB content index (Section 1).
This year’s survey found that 63 companies were using the SASB Standards. Regarding utilisation of the SASB Standards, 38 companies disclosed a SASB content index. Both numbers have continued to increase since this survey started two years ago.
Fig. 1. Trends in companies using SASB Standards
TOPIX 100 companies have increased their reporting on key metrics in the SASB Standards (Section 2).
This year’s survey results show that 80% of the industry-specific disclosure topics defined in the SASB Standards were identified as material issues in the materiality assessments of TOPIX 100 companies. Full or partial disclosure of metrics came to 55% in total. In both cases, the numbers have steadily increased since the survey of two years ago.
Meanwhile, there are a high percentage of metrics that were not disclosed at all. The results indicate that the most room for improvement is in the use of product-related metrics in the Product Design & Lifecycle Management and Product Quality & Safety categories.
Fig. 2. Status of disclosure on key sustainability issues identified in the SASB Standards
We identified and summarised examples of disclosures by leading companies to serve as a reference for efforts to improve on metrics that are not being fully utilised by TOPIX 100 companies (Section 3).
Metrics in specific general issue categories, such as Product Design & Lifecycle Management and Product Quality & Safety, were found to have particular potential for use.
Examples of disclosures by leading companies that use the SASB Standards for these metrics are introduced. Examples include not only how the metrics are disclosed, but also information on performance management using the underlying metrics, and the formulation of strategies and action plans that underpin the performance management.
