NGO Rainforest Action Network (RAN) claims that many Japanese companies are either “systematically misreporting compliance” under Japan’s Corporate Governance Code, or have a “fundamental lack of understanding as to what constitutes meaningful sustainability reporting and stakeholder engagement.”
“In June 2015, Japan introduced a Corporate Governance Code intended to increase transparency and oversight related to environmental, social and governance (ESG) performance. RAN marked the first anniversary of the its implementation by evaluating the Code reports of ten major Japanese companies with known links to tropical deforestation and associated social risks through their supply chains, trading divisions or financial relationships. The NGO asserts that none of the companies are sufficiently disclosing their risks, and advises shareholders to take heed.
Failing to disclose a company’s environmental and social risks puts shareholders at risk from unforeseen scandals which can in turn lower company brand value, cause cancellations of supplier contracts, or result in legal action,” RAN stated in a press release………”
Read full article here and full report in pdf here.
Source: Rainforest Action Network.
About BDTI
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.