The Japan Exchange Group, Inc. (JPX), together with JPX Market Innovation & Research, Inc., has released the beta version of the “JPX Sustainability Information Search Tool.” This new tool is aimed at improving access to environmental, social, and governance (ESG) information for companies listed on the Tokyo Stock Exchange (TSE). By making the process of retrieving ESG-related data simpler, JPX is supporting improved transparency and disclosure practices for listed entities, reinforcing its commitment to sustainability leadership.
This beta version of the innovative tool aggregates a large number of sustainability-related disclosures into one platform. Specifically, it offers direct access to links across 38 ESG topics sourced from annual securities reports, integrated reports, and company websites of Prime Market-listed entities. The initiative comes at a time when the demand for streamlined access to corporate sustainability metrics is growing, driven by increasing investor interest and regulatory changes.
In a statement, JPX noted that the tool would simplify access to ESG information and help companies refine their disclosures on sustainability matters. “This tool is meant to make access to ESG-related information easy and assist companies in refining their sustainability disclosures,” the organization stated.
Developed in partnership with Cierpa & Company, known for their extensive experience in introducing artificial intelligence within business solutions, the platform enables the sorting, analysis, and presentation of all ESG-related information to the users. According to Sugimoto Jun, CEO, Cierpa & Company: “The application has been revolutionizing the way businesses approach sustainability reporting by simplifying the entire process of sustainability disclosures and making this information actionable to the user.”.
Among its prominent features, the tool can customize search capacity, allowing filtering ESG information on topics, companies of interest, type of publication, and even by year, hence allowing access to data in ways tailored to individual requirements. Users can also make cross-company analyses for comparative studies on multiple entities. This capability is very important for investors and analysts who wish to have an overview of the ESG practices of a specific industry or market segment.
Currently, the tool is available free of charge but only to TSE-listed companies. The beta testing period is to collect user feedback, which will be instrumental in refining the features and functionality of the platform before wider rollout. This feedback-driven approach is part of JPX’s strategy of ensuring that the tool effectively meets user needs and industry standards.
The development of the JPX Sustainability Information Search Tool is timely in light of increasing pressures on global organizations to transparently disclose their ESG metrics. Recently, a Deloitte report revealed that 46% of FTSE 100 companies restated their sustainability metrics to be aligned with new reporting standards. This further reflects the shifting landscape of corporate sustainability reporting. By introducing a centralized platform for ESG data, JPX positions itself as a key enabler of this transition, fostering a culture of transparency and accountability among its listed companies.
The beta launch also shows JPX’s commitment to utilizing technology for innovation in the markets. By including the advanced AI analytics in the tool, the exchange not only helps make data more accessible but also enables stakeholders to extract meaningful insights from the data. This follows the global ESG reporting trends, where the need for data-driven insights continues to grow with every decision-making process.
JPX will play a leading role in determining the future standards of ESG disclosure in Japan. The tools developed by the exchange, such as the JPX Sustainability Information Search Tool, are benchmarking the integration of technology and sustainability, thus adding value to both companies and investors. The full-scale deployment of the platform, further refining it based on user feedback, is expected to increase the transparency and efficiency of ESG reporting in the TSE.
In summary, the JPX Sustainability Information Search Tool is a significant step in making ESG data more accessible and actionable. The combination of AI-powered analytics with user-friendly features equips listed companies and stakeholders with the tools needed to navigate the evolving landscape of sustainability disclosures. As the beta phase unfolds, this initiative is poised to play a pivotal role in driving ESG transparency and fostering sustainability leadership among TSE-listed companies.