The Financial Services Agency, Japan (JFSA) established the “Working Group on Social Bonds” under the “Expert Panel on Sustainable Finance” in March, 2021 in response to requests for early establishment of practical guidelines on social bonds from economic and other organizations. The Working Group discussed the concrete contents of practical guidelines for social bonds which can be used as reference when considering specific measures regarding social bonds issued by ordinary companies in the private sector. Based on discussions at the meetings of the Working Group, the JFSA published the “Social Bond Guidelines” in October, 2021.
The “Social Bond Guidelines” states that issuers should disclose information regarding the expected social benefits of projects by using appropriate indicators and recommends that issuers, where feasible, use quantitative indicators. However, since there are a vast variety of social projects, concrete examples of such indicators were to be entrusted ongoing discussion to the relevant parties.
The JFSA discussed concrete examples of indicators for social benefits from social projects with the Cabinet Office, relevant ministries, and agencies to make an example document from December 2021. Afterward, the JFSA published the finalized “Examples of Indicators for Social Benefits of Social Projects” on July 15, 2022 as Annex 4 to the “Social Bond Guidelines” after discussions at the meetings of the “Working Group on Social Bonds” and public consultation.
The English translation of the “Examples of Indicators for Social Benefits of Social Projects” is published (see Attachment 1).
Financial Markets Division, Policy and Markets Bureau, Financial Services Agency.
（Attachment 1） Examples of Indicators for Social Benefits of Social Projects (English translation)
（Attachment 2） Overview of the Examples of Indicators for Social Benefits of Social Projects (English translation)