Discussion Paper on Corporate Disclosure of GHG Information

This document is a discussion paper focused on the corporate disclosure of greenhouse gas (GHG)-related information within the Japanese financial sector. It outlines the current status of corporate GHG emissions disclosures, emphasizing the importance of transparent reporting for financial institutions involved in lending and investment. The paper details the role of the Partnership for Carbon Accounting Financials (PCAF) Japan coalition, which promotes collaboration among financial institutions to improve GHG measurement methodologies. It presents data on the disclosure rates of GHG emissions by Japanese companies, highlighting that only a small percentage report their scope 1, 2, and 3 emissions. The paper also discusses the challenges faced by financial institutions in obtaining accurate emissions data from companies, which is crucial for assessing financed emissions. Additionally, it addresses the target requirements set by key Net Zero initiatives for financial institutions in Japan, emphasizing the need for effective data collection and reporting practices to support decarbonization efforts.