Strategic Focus: Understanding ESG & Sustainability Regulations And Reporting In Japan

16 Jun, 2025

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Executive Summary

Sustainability is a critical consideration in Japan, with economic, social and geographical factors at play. The country frequently finds itself in the path of extreme weather and geological events. Its history of product innovation and – more recently – competition in a global marketplace have significantly contributed to the development of its macroeconomic strategy and social policy. Bringing each of these factors together, Japan’s government is focused on building a regulatory landscape that promotes resilience and transparency. This report provides executives with an overview of Japan’s sustainability landscape and how they can prepare for entering its markets.
Japan’s ESG and sustainability regulatory regime is evolving
Historical influences and current necessities drive Japan’s ESG and sustainability agenda
Transparency and investor demand drive regulatory focus on resilience and opportunity
Firms in Japan should prepare themselves for the opportunities on offer

Figure 1. Japan’s key sustainability visions, policies and regulations
Figure 2. Timeline of circular economy models in Japan
Figure 3. Changes in Japan’s Corporate Governance Code

About the Authors

Callum Millard

Callum Millard

Analyst

Callum is an Analyst at Verdantix, helping firms navigate the evolving ESG, sustainability, product innovation and product stewardship landscapes, to drive value creation and ...

View Profile
Kim Knickle

Kim Knickle

Research Director

Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a...

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