Declaration on Promoting Sustainable FinanceJuly 20, 2022

Declaration on Promoting Sustainable Finance
Whereas recognizing our mission is to establish a sound securities market that is consistent with thesociety, highly reliable and transparent in order to contribute to the realization of a sustainable society
and the achievement of carbon neutrality by 2050, we declare as follows.

We in the securities industry:１
welcome actions by market participants taking into account the medium- to long-term
２sustainability, including ESG factors.
strive to undertake active cooperation and collaboration with various stakeholders, further
３increase the sense of ownership, and fulfill the roles that the securities industry should play.
regard sustainable finance as infrastructure to realize a sustainable society, and promote thisthrough the fund-raising and -supply functions of the securities market.

Specific policies and measures to promote sustainable finance are described in the Annex to thisDeclaration.

July 20, 2022 : Japan Securities Dealers Association (JSDA)© Japan Securities Dealers Association.All Rights Reserved.

1Annex to Declaration on Promoting Sustainable Finance

１Seek to create positiveimpacts through securities
investments

The securities industry seeks to create more positive impacts on the environmentand society while securing appropriate risk-return if conditions such as risk andreturn are equal or similar compared to other investments.

２

Contribute to the shift todecarbonization throughtransition financeIn order to contribute to a steady transition to decarbonization, the securities
industry promotes transition finance, which provides funds for decarbonization orlow-carbon investments, not only in green projects but also in sectors where it isdifficult to reduce emissions.

３

Develop market
participants’ capacities withregards to sustainablefinance

The securities industry promotes initiatives to develop human resources in order tocontribute to deepening market participants' understanding and knowledge ofsustainable finance.

４

Promote sustainable financeto individual investors

The securities industry actively disseminates, permeates and promotes thesignificance of sustainable finance to a wide range of people including individual
investors and students.

５

Strengthen cooperation andcollaboration with domestic
and overseas counterpartsThe securities industry further strengthens cooperation and collaboration withstakeholders on the promotion of sustainable finance, including counterparts inJapan and overseas, and speeds up initiatives to promote sustainable finance fromvarious angles.
© Japan Securities Dealers Association.All Rights Reserved.

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Action Plan Summary(As of July 20, 2022)
Specific measures

１２Time-frame

Seek to create
positive impacts
throughsecurities
investments

1.

Publish the Japanese translation of "Harmonised Framework for Impact Reporting" issued byICMA and other documents to contribute to the preparation of impact reporting by issuers.

1.

2.

Set up a portal on the JSDA's website through which people can access the tools on impact
finance and impact reporting published by initiatives such as GIIN, GSG, IMP and ISSB, and theguidelines on non-financial reporting frameworks published by the SASB, GRI, etc.

2.

Contribute tothe shift todecarbonization
throughtransition
finance

1. (For market participants) Hold study sessions for market participants on sector-specific roadmaps
published mainly by the METI.

３Developmarket
participants’capacities withregards tosustainablefinance1.

2. Exchange information on transition finance within Asia in the Study Group on Transition Financeunder the Asian Securities Forum (ASF), for which the JSDA serves as the secretariat.

2.

3. Undertake various initiatives related to transition finance, including joint events with ICMA.

3.

1.

(For issuers) In continuing the training program with ICMA, review the contents to make it moremeaningful for issuers of SDG bonds.

2.

(For securities companies) Update the contents of the "Guidebook on Financial Instruments
Contributing to the SDGs" published by the JSDA.

1.

2.

Planned to bedone during
fiscal 2022
Planned to bedone during
fiscal 2022

Held
sequentiallyfrom April
2022
During fiscal2022
During fiscal
2022

Planned to beheld during
fiscal 2022
Revised andpublished inMarch 2022

Methods for publication
1.

2.

1.
2.
3.

1.

2.

Planned to be
published on theICMA website and theJSDA website
Plannedtobe
published on the JSDA
websiteOnline hosting
Online information
sharing
Communications
using the JSDA
websiteAssumed to be held
online (Depending on
the situation, consider
hybrid format of
online and in-person)
Published on the JSDAwebsite© Japan Securities Dealers Association.All Rights Reserved.

3Action Plan Summary
Specific measures

４５

Promotesustainablefinance toindividualinvestors

Time-frame
1.

1.

Develop contents that contribute to understanding the significance of sustainable finance in the"Time for Investment" section of the JSDA website for individual investors.

2.

Subject to individual investors’ increased knowledge on ESG investment, consider collecting andpublishing methods and examples of ESG investment in listed stocks by individual investors.

2.

Planned to be
developed
during fiscal
2022
Planned to beconsideredduring fiscal
2022

Methods for publication

1.

2.

Planned to be
published on theICMA website and theJSDA website
Plannedtobe
published on the JSDAwebsite

1. Appropriately express the securities industry’s views on proposed standards for sustainability
reporting. <The Working Group on Sustainability Standards was established under the Sustainable
Finance Promotion Committee>

Strengthen
cooperation and 2. Actively collaborate and cooperate with the Sustainable Finance Platform Development Working
collaboration
Group set up in the JPX regarding ESG-related platforms and other measures.
with domestic
3. Exchange views on current issues, as well as domestic and international trends, related toand overseas
sustainable finance among relevant parties, and express views to the authorities, if appropriate.
counterparts

Sequentially
implemented
during fiscal 2022

Sequentially cooperate andcommunicate at eachcommittee/meeting, etc.

4. Reflect on measures related to sustainable finance while paying attention to necessary
collaboration with domestic and overseas stakeholders such as relevant authorities and GFANZ.
5. Continue the ongoing collaboration with ICMA.

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