Japanese Corporate Governance as Seen in Terms of ESG Scores – Some Sompanies Have Issues, But Many are Also Top Rate

Mr. Kengo Nishiyama, analyst of Nomura Equity Research, has submitted the report below. Summary:

No large gaps in ESG score distribution between Japan and Europe/North America

Japanese companies score highly for environment-related efforts

Although investor concerns regarding Japanese corporate governance have been growing in response to the recent incidents, ESG data and other indicators suggest that Japanese companies have put governance structures in place.

We think the key to easing investor concerns will be how effectively these structures function. In light of therecent incidents, we think companies that enhance communications with investors (such as through proactive information disclosure) and actively strengthen governance structures are likely to attract favorable attention.

The full report is on BDTI's data library : http://bit.ly/tgl3xE

The Board Director Training Institute (BDTI) is a "public interest" nonprofit in Japan dedicated to training about directorship, corporate governance, and related management techniques. It is certified by the Japanese government to conduct these activities as a regulated nonprofit. Read a summary about BDTI here, and see a menu of its services for both corporations and investors here.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.