Third-Party Registration and Verification System for ESG Management in SMEs to Launch on April 1st. Supported by SDSC

The Sustainability Data Standardization Consortium (SDSC) is pleased to announce the launch of the “Third-Party Registration and Verification System,” which will be operated by the Union of Japanese Scientists and Engineers(JUSE) from April 1, 2025. This system, developed with SDSC’s support, is designed based on the “Handbook for Sustainability Information Utilization for SMEs” and aims to assist in the disclosure of corporate sustainability information. Through third-party verification, it enhances the credibility of such disclosures, thereby promoting corporate value and sustainable growth.

Background

As interest in ESG management grows, the importance of sustainability information disclosure is increasing, particularly for SMEs, which are becoming part of the supply chains of larger companies. SMEs need mechanisms to respond to requests from banks, municipalities, and other stakeholders. However, for many SMEs with limited resources, advancing information disclosure at the same level as large corporations can be challenging. Additionally, the lack of clear disclosure standards has made the task even more daunting. In response to these societal demands, SDSC developed the “Handbook for Sustainability Information Utilization for SMEs,” which led to the creation of this system.

This system aims to support SMEs in disclosing their sustainability efforts while enhancing the reliability of their disclosures through third-party verification.

Overview of the System

The system allows companies to register their sustainability activities and undergo objective evaluation and verification. The activities are assessed on a five-level scale, and a certificate of registration is issued. Additionally, companies are randomly selected for regular verification to ensure the reliability of their disclosed information.

Initial registration fee: JPY30,000

From 2nd year onwards: JPY70,000

Key Features of the System

1）Visualization of ESG and Sustainability Information

The system helps SMEs systematically organize and disclose their ESG management and sustainability efforts.

2）Enhanced Credibility

Through objective evaluations by third-party organizations, the transparency and credibility of the information are ensured.

3）Increased Corporate Value

By clearly demonstrating efforts in ESG management, companies can enhance their evaluations by business partners and financial institutions.

Future Outlook

SDSC and JUSE will continue to work together to enhance the recognition of this system, strengthening support measures and making improvements. Their goal is to contribute to the sustainable growth of SMEs and to the sustainability of local communities through this initiative.

Inquiries

For any inquiries related to this matter or the "Handbook for Sustainability Information Utilization for SMEs," please contact:

https://www.j-sdsc.org/en

About the Sustainability Data Standardization Consortium

The Sustainability Data Standardization Consortium (SDSC) aims to promote “sustainability information disclosure that is useful for decision-making, particularly focusing on SMEs.” It was established with the support of a diverse range of financial institutions, government agencies, SMEs-related organizations, and other relevant entities in Japan. Key members include major banks and government-affiliated financial institutions (with over 60 domestic member banks, holding approximately 92% of the domestic deposit share). The Financial Services Agency participates as an observer.(As of February 26, 2025)

https://www.j-sdsc.org/en