Japanese
December 15, 2022
Financial Services Agency

Finalization of “the Code of Conduct for ESG Evaluation and Data Providers”

1. Finalization of the Code of Conduct for ESG Evaluation and Data Providers

　Based on the recommendations of the "Report by the Expert Panel on Sustainable Finance
 (Building A Financial System that Supports a Sustainable Society)" published in June 2021, the Financial Services Agency (FSA) established the Technical Committee for ESG Evaluation and Data Providers, etc. in February 2022 and extensively discuss the current status of ESG evaluation and data, challenges faced by relevant parties in ensuring that ESG evaluation and data are appropriately provided and used, and future developments that are expected.
 
　The FSA then published the draft of the Code of Conduct for ESG Evaluation and Data Providers and solicited comments between July 12, 2022 and September 5, 2022.
 
　The FSA received 209 comments on the draft Code from 45 individuals/entities. Please see Appendix 3 for the comments received and our response to them. As a result of further discussion at the 8th Technical Committee, the "Code of Conduct for ESG Evaluation and Data Providers" (hereinafter referred to as the "Code of Conduct") was finalized as shown in Appendix 1 in Japanese and Appendix 2 in English, and reported to the 15th Expert Panel on Sustainable Finance on December 15. The Code of Conduct is now available to the public.
 
　The summary of public consultation is provided in Appendix 4 (Japanese).
 
　Letter to CEOs of ESG Evaluation and Data Providers

2. Notification of Endorsement to the FSA

　The statement of endorsement by ESG evaluation and data providers (hereinafter referred to as "evaluation organizations, etc.") is described in the Code of Conduct as follows.

The FSA calls for ESG evaluation and data providers to endorse the Code of Conduct and, if it is endorsed, to publish it on their websites and notify the FSA of it. The FSA will publish the status of endorsement in a comprehensive manner around six month after the publication of the Code (with regard to the status of endorsement regarding data in the Code of Conduct, around further one year after the initial publication of the status of endorsement).

　In addition, the Code of Conduct states the following regarding the manner in which evaluation organizations, etc. should express its endorsement.

The Code of Conduct is not laws or regulations that uniformly require actions of parties concerned, but designed to be a voluntary code on a “comply or explain” basis, where the FSA calls for organizations to express their support for the Code via public announcement, and the organizations supporting the Code will either comply with the principles and guidelines of the Code, or explain the reasons why they do not comply with a particular principle or guideline. When implementing the principles or guidelines of the Code, it is important to provide easy-to-understand explanations so that readers can understand the specific status of compliance with each item of the principles and guidelines.

　Therefore, all evaluation organizations, etc. who intend to express their endorsement of the Code of Conduct are invited to notify the Sustainable Finance Office, Strategy Development Division, Strategy Development and Management Bureau at the FSA (sustainable-fin.esg@fsa.go.jp) of their intention as well as the information below.
 

• Name of the evaluation organizations, etc. (in Japanese, if any):
• Name of the evaluation organizations, etc. (in English):
• Area(s) of endorsement (evaluation only/data only/evaluation and data):
• Name of person(s) in charge (department/division)
• Contact information (address, telephone number, or e-mail address)
• The URL where the statement of endorsement is published:
• The URL where specific compliance with each of the principles and guidelines of the Code of Conduct is made public:

3. Others

　Based on the received notifications of endorsement of the Code of Conduct from evaluation organizations, etc., the FSA will publish the list of status of endorsement of the Code of Conduct by June 2023, and the status of endorsement regarding data provision by June 2024. No further notification to the FSA is required on the occasion of the compile the list.
　If you have any special practical issues or questions regarding endorsement, please contact us at the above email address.
 

 (Appendix 1) The Code of Conduct for ESG Evaluation and Data Providers (Japanese)

 (Appendix 2) The Code of Conduct for ESG Evaluation and Data Providers (English)

 (Appendix 3) Summary of opinions received concerning the draft Code of Conduct for ESG Evaluation and Data Providers and responses to them (Japanese and English)

 (Appendix 4) Summary of Public Consultation on the draft Code of Conduct for ESG Evaluation and Data Providers (Japanese)

 (Reference 1) The Code of Conduct for ESG Evaluation and Data Providers with track changes from the draft version (Japanese)

 (Reference 2) The Code of Conduct for ESG Evaluation and Data Providers with track changes from the draft version (English)