From the TSE: “Tokyo Stock Exchange, Inc. (TSE) has partially revised the Securities Listing Regulations pertaining to the revision of Japan’s Corporate Governance Code (hereinafter the “Code”) (*) with effect from June 1, 2018.
This revision is based on the proposals made by the Council of Experts Concerning the Follow-up of Japan’s Stewardship Code and Japan’s Corporate Governance Code (hereinafter the “Council”). Jointly operated by the Financial Services Agency and TSE, the Council made proposals to revise the Code in order to advance governance reform not just in form but also in substance through dialogue between companies and investors.
(*) Several comments gathered in the public comment process expressed that as the conversation on environment, social, and governance (ESG) matters continues to develop, “information disclosure” related to ESG matters at companies should be included in the Code. As such, based on such comments, in addition to the draft revisions to the Code indicated in the outline published on March 30, 2018, the “Notes” to Section 3 of the Code will be revised to indicate that “non-financial information” includes information related to ESG matters.”