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5 October 2021

The TCFD Consortium announces the release of “Guidance for Utilizing Climate-related Information to Promote Green Investment 2.0 (Green Investment Guidance 2.0)”

Today, the TCFD Consortium announced the release of “Guidance for Utilizing Climate-related Information to Promote Green Investment 2.0 (Green Investment Guidance 2.0)” revising the “Guidance for Utilizing Climate-related Information to Promote Green Investment (Green Investment Guidance)” originally published in October 2019.

Disclosure based on the TCFD recommendations is progressing. In order to facilitate green investment, significant progress since the publication of the first edition is reflected for investors and other stakeholders to understand the information disclosed. The new “addendums” discuss topics that are considered to be important. The revised Guidance is Expected to help companies better understand the perspectives of investors and other stakeholders, leading to further disclosure.


The revision of this guidance takes into account 3 major developments that have occurred in the approximately 2 years since the first edition of this Guidance was published in October 2019, as follows:
Progress on social issues: Currently, achieving carbon neutrality is becoming a goal for many countries and companies. In order to achieve this goal, transition on a massive scale and significant technological progress (innovation) are required. Therefore, a growing importance is placed on engagement.
Progress on financial action: Efforts to reduce emissions from financial portfolios including indirect financing are gaining momentum. Therefore, it is becoming necessary to take measures to encourage borrowers to respond to climate change through long-term engagement.
Progress in corporate disclosure: Disclosure is progressing due to factors such as increase in disclosing companies due to revision of the Corporate Governance Code, as well as use of internal carbon pricing and increased emphasis on Scope 3 emissions. These necessitate investors and other stakeholders to consider such information taking into account materiality.

2.Structure of the Guidance

In the revision, Chapter 4 (Addendums) is newly added, dividing this Guidance into two parts: main text and addendums.

Green Investment Guidance

Main text: Provides commentaries on the discussions on corporate and investor engagement on climate change in Japan, as in the first edition of the Guidance. The revisions reflect the key viewpoints on progressing the “virtuous cycle of environment and growth” between companies and investors which became apparent since the publication of the first edition.
Addendums: Focus on themes that still needs to be elaborated to be taken up on the main text. Specifically, themes such as carbon pricing and transition finance were selected due to its growing importance in understanding disclosed information by investors and other stakeholders. The addendums are included with an objective to deepen the mutual understanding of issues from the viewpoint of companies and investors and other stakeholders.
Future directions: Viewpoints and issues discussed in the addendums are expected to change over time. Therefore, it is envisaged that revisions will be made according to the latest development.