Results of the Fifth Market Functioning Survey concerning Climate Change Progress in the Improvement of Market Functioning and Challenges for the Future

August 17, 2026
Financial Markets Department
Bank of Japan

• Full Text [PDF 565KB]
• Appendices [PDF 802KB]
• Data [XLSX 24KB]

Introduction

To accelerate efforts in tackling climate change, it is crucial for financial markets to play a greater role in terms of financial intermediation by incorporating climate-related risks and opportunities into the pricing of financial instruments, such as stocks and corporate bonds, and by providing a favorable environment for the issuance of climate change-related ESG bonds.

Since 2022, the Bank of Japan has conducted the Market Functioning Survey concerning Climate Change, targeting a wide range of market participants including not only investors and financial institutions but also business corporates and others. The survey aims to continuously collect their views on the functioning of Japanese financial markets in relation to climate change and identify challenges for further improvement. This is the fifth round of the survey.

As with the previous surveys, this fifth round set questions under three themes: "Pricing of Climate-Related Risks and Opportunities in Financial Instruments"; "Climate Change-Related ESG Bond Market"; and "Prospects and Challenges of the Climate Change-Related ESG Bond Market." In addition, in light of the mandatory application of the Sustainability Standards Board of Japan (SSBJ) Standards, new questions were added to understand market participants' preparation status and challenges regarding information disclosure.

Moreover, as key developments since the previous survey, the report features boxes on "ESG Bond Market Trends," "Developments in Transition Finance," and "Mandatory Disclosure based on the SSBJ Standards." These boxes summarize recent trends, key points to watch and challenges, and market participants' views.

The Bank hopes that this survey will provide a foundation for understanding the functioning of financial markets concerning climate change, thereby contributing to active discussions and deliberations among market participants and their proactive initiatives.

Notice

Please contact below in advance to request permission when reproducing or copying the content of this report for commercial purposes.
Financial Markets Department, Bank of Japan
Please credit the source when reproducing or copying the content of this report.

Inquiries

Market Infrastructure Division
Financial Markets Department

E-mail : post.fmd37@boj.or.jp