Fifth climate survey tracks ESG bond markets and SSBJ disclosures
The Bank of Japan has released the results of its fifth Market Functioning Survey concerning Climate Change on August 17, 2026. The survey examines pricing of climate risks, ESG bond markets and participant readiness for mandatory Sustainability Standards Board of Japan disclosures.
SSBJ standards shift mandatory reporting focus
The fifth survey round targets a wide spectrum of market participants including investors, financial institutions and business corporates to evaluate the functioning of Japanese financial markets regarding climate change.
In addition to core themes on pricing climate-related risks and ESG bond market prospects, this iteration adds specific questions on the mandatory application of Sustainability Standards Board of Japan standards.
The new additions aim to assess market readiness and information disclosure challenges.
Special feature sections focus on ESG bond market trends, developments in transition finance and mandatory reporting frameworks.
Tracking progress since 2022
The Bank of Japan has conducted this survey continuously since 2022 to gather market views and identify structural challenges for Japanese capital markets.
The framework rests on three recurring pillars: the pricing of climate risks in financial instruments, the structure of the ESG bond market and future growth prospects.
By providing this foundation, the central bank seeks to foster active discussions and encourage market participants toward proactive climate finance initiatives.
Framework expands, execution determines impact
Adding SSBJ questions marks a needed shift toward standardized disclosure.
However, survey data alone will not remove market friction if firms treat compliance as a routine exercise.
Real progress depends on whether pricing actively reflects climate risks.