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6.1. (...) Since the previous Review, earth-shaking structural changes have been occurring in the environment surrounding Japan, driven by the COVID-19 pandemic, Russian Federation's aggression against Ukraine, and climate change. (...)

6.2. (...) Japan set out the Grand Design and Action Plan for a New Form of Capitalism in June 2022. The New Form of Capitalism incorporates efforts to solve social issues into the growth strategy as a source of creating value added, and specifies five focused investment areas: (...)and (iv) Investment in green transformation (GX) and digital transformation (DX). (...)

6.3. To make economic and social structures more resilient and sustainable in the face of change, Japan is now upgrading our capitalism in this way, and will further strengthen our free and fair economic system.

6.15. (...) In 2021, the Code[the Corporate Governance Code] was revised to make a number of important changes relating to the enhancement of board independence, and the promotion of diversity, attention to sustainability and ESG. (...)

6.16. The Stewardship Code is a bundle of principles that requires institutional investors (trust banks, investment managers, insurance companies, pension funds, etc.) to promote the sustainable growth of their investee companies and enhance the mid- to long-term investment return of clients and beneficiaries. The Code was revised in 2020 to further enhance the effectiveness of corporate governance reform. Major issues are consciousness towards the mid- to long-term increase of corporate value in stewardship activities, consideration of sustainability, and application to other asset classes (i.e. corporate bonds).

6.26. Japan has accelerated steps taken to achieve net-zero emissions to meet two ambitious goals: in October 2020, the Japanese Government declared its intention to achieve net-zero greenhouse gas (GHG) emissions by 2050; and, in April 2021 announced its new target to reduce its GHG emissions by 46% in fiscal year 2030 from its fiscal year 2013 levels and continue strenuous efforts in its challenge to meet the lofty goal of cutting its emissions by 50%.

6.27. The Japanese Government has accelerated taking measures towards the reduction of GHG emissions and stipulated future directions. It should take into account the Strategic Energy Plan, the Plan for Global Warming Countermeasures, and the Long-Term Strategy under the Paris Agreement, as well as other relevant Agreements.
- Establishment of the Sixth Strategic Energy Plan (decided by the Cabinet in October 2021): lays out specific measures to be taken by 2030 with a continued focus on the principle of "3E+S," which emphasizes ensuring of a stable energy supply (Energy Security), the economic efficiency of energy costs (Economic Efficiency), and environmental suitability from the point of view of climate and other elements (Environment), and energy source safety (Safety).
- Revision to the Plan for Global Warming Countermeasures (decided by the Cabinet in October 2021): Updates the Plan for Global Warming Countermeasures, which is initially set in May 2016, to present the Government's comprehensive plan based on the Act on Promotion of Global Warming Countermeasures. It puts forward a set of measures and policies for achieving the new target, describing a pathway toward it. Among the important tasks included in the revised plan is to create over 100 decarbonization leading areas that aim to achieve net-zero CO2 emissions from electricity consumption in the household and business sector by fiscal year 2030.
- Revision to Japan's Long-Term Strategy under the Paris Agreement (decided by the Cabinet in October 2021): Updates the Long-Term Strategy to show the basic concept, visions, and measures for net-zero GHG emissions by 2050. With regard to realizing a virtuous circle of environment and growth, the Strategy includes promoting innovation for decarbonization technologies and cost reduction, green finance through TCFD disclosures and ESG finance, and business-led international application and cooperation.

6.28. In June 2022, the Government revealed plans to indicate a roadmap regarding investment in green transformation on the scale of JPY 150 trillion over the next decade under public-private partnerships, and according to the Plan, the Japanese Government will embody the vision for "Pro-Growth Carbon Pricing", which aims to maximize economic growth and GHG emissions reductions/absorption at the same time, and also consider raising funds through "GX Economy Transition Bonds (tentative name) backed by future financial resources".

6.29. Shortly after the accident at the Tokyo Electric Power Co. (TEPCO)'s Fukushima Daiichi Nuclear Power Station (FDNPS) in March 2011, the Japanese national government and prefectural authorities have taken a comprehensive set of measures such as decontamination of the farm land and fruit trees, control over feeds and agricultural inputs and introduced a risk-based food monitoring scheme, respectively. (...)

6.31. According to the UNSCEAR 2020/2021 Report, in the first year after the accident, about 2.5% of the measured samples of marine fish caught off Fukushima Prefecture were found with radioactive cesium concentrations exceeding the guideline level (of 1,000 Bq/kg). However, in the second year, the number reduced to 0.3% and in the third year, only one sample was found and it further reduced by around 0.01%.