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JICPA to Host Special Forum on Sustainability Information Disclosure and Assurance, Aligning with Global Trends
Tokyo, April 18, 2025 – The Japanese Institute of Certified Public Accountants (JICPA) has announced a special forum focusing on the critical and rapidly evolving landscape of sustainability information disclosure and the assurance (guarantee) of that information. The forum, organized by the Japan Federation of Accounting and Auditing Experts Leagues (JFAEL) and sponsored by the JICPA, is titled “Vision for the penetration of sustainability information disclosure and mandatory guarantee services – International trends and advancement of Japanese standards.”
This event underscores the growing importance of Environmental, Social, and Governance (ESG) factors in investment decisions and corporate reporting. As sustainability becomes more central to business strategy, the demand for reliable and comparable sustainability information is increasing exponentially.
Key Highlights of the Forum:
- Focus: The forum will delve into the current state and future direction of sustainability reporting, both globally and within Japan.
- Mandatory Assurance: A key theme will be the transition towards mandatory assurance of sustainability information. This means having independent auditors verify the accuracy and reliability of the data companies are reporting, similar to how financial statements are audited.
- International Trends: The forum will explore international standards and best practices in sustainability reporting and assurance. This includes insights into frameworks like:
- The International Sustainability Standards Board (ISSB): The ISSB is developing a comprehensive global baseline of sustainability disclosure standards. Japan is actively involved in the development of these standards and is expected to adopt them.
- The Global Reporting Initiative (GRI): A widely used framework for sustainability reporting, providing detailed guidance on specific sustainability topics.
- The Task Force on Climate-related Financial Disclosures (TCFD): Focuses specifically on climate-related risks and opportunities, and its recommendations have been widely adopted.
- European Union’s Corporate Sustainability Reporting Directive (CSRD): This directive mandates extensive sustainability reporting for a broad range of companies operating in the EU, including many non-EU companies.
- Advancement of Japanese Standards: The forum will specifically address how Japanese accounting and auditing standards need to evolve to align with these international developments and support the effective implementation of sustainability reporting and assurance. This includes considering the specific needs and characteristics of the Japanese business environment.
Why This Matters:
- Increased Investor Demand: Investors are increasingly using ESG information to make investment decisions. They want to understand how companies are managing their environmental impact, social responsibility, and governance practices.
- Enhanced Corporate Accountability: Mandatory sustainability reporting and assurance will increase corporate accountability and transparency. Companies will be held to a higher standard in terms of their sustainability performance.
- Improved Decision-Making: Reliable sustainability information will help companies make better decisions about their operations and strategies, leading to more sustainable business practices.
- Global Competitiveness: Adopting international standards for sustainability reporting will enhance the competitiveness of Japanese companies in the global market.
- Professional Opportunity: The shift towards sustainability assurance creates significant opportunities for certified public accountants and other professionals with expertise in ESG.
Expected Outcomes:
The JICPA’s special forum is expected to:
- Raise awareness among stakeholders (companies, investors, auditors, regulators) about the importance of sustainability reporting and assurance.
- Facilitate discussions on the challenges and opportunities of implementing mandatory assurance of sustainability information in Japan.
- Contribute to the development of Japanese standards and guidance that align with international best practices.
- Promote the development of expertise and capacity in sustainability reporting and assurance within the accounting profession.
In Conclusion:
The JICPA’s forum on sustainability information disclosure and assurance is a timely and important event. It reflects the growing global momentum towards more transparent and accountable corporate sustainability practices. By engaging with international trends and advancing Japanese standards, the JICPA is playing a crucial role in supporting the transition to a more sustainable economy. The move toward mandatory guarantees signifies the seriousness and importance now being placed on sustainability disclosures, ensuring their reliability and usefulness for stakeholders.
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At 2025-04-18 01:51, ‘(Notice of the event) JFAEL Special Forum “Vision for the penetration of sustainability information disclosure and mandatory guarantee services – International trends and advancement of Japanese standards” (sponsored by the Japan Association of Certified Public Accountants)’ was published according to 日本公認会計士協会. Please write a detailed article with related information in an easy-to-understand manner.
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