Background:
Last year, Japan introduced codes designed to work together to increase corporate value and investor return in Japanese companies. The Corporate Governance Code and the Stewardship Code are supposed to work hand-in-hand to promote transparency and sustainable growth. Part of the Corporate Governance Code calls for companies to have at least two independent directors. Having outsiders on board, it was hoped would bring discipline as companies reach for higher profits.
Kato Takao and Kodama Naomi: ”Corporate Social Responsibility and Gender Diversity in the Workplace: Evidence from Japan”
”Abstract: Using panel data on corporate social responsibility (CSR) matched with corporate proxy statement data for a large and representative sample of 1,492 publicly-traded firms in Japan over 2006-2014, we provide rigorous econometric evidence on the effects of CSR on gender diversity in the workplace. Our fixed effect estimates point to positive and significant effects on gender diversity of CSR, yet the effects are felt only after two to three years.
Bloomberg: ”Asia set to turn tables on lagging ESG transparency”
Asian exchanges push for greater ESG disclosure to woo investors
”Asian stock exchanges are seeking to improve the region’s historically weak record of environmental, social and governance (ESG) disclosures.
”How the ESG landscape is changing in Japan” – A participant’s personal observation of RI Asia 2016
”RI Asia 2016 took place at the Tokyo Stock Exchange on the 23-24th February, and was attended by approximately 400 domestic and international participants. As an ex-resident of London now based in Tokyo, it has been interesting to observe the changingESG landscape in Japan. RI Asia acted as a useful milestone to stop, reflect […]
David A. Katz et al ”Gender Diversity on Boards: The Future Is Almost Here”
‘‘A board composed of directors representing a range of perspectives leads to an environment of collaborative tension that is the essence of good governance. In a room where everyone has different points of view and there is a greater opportunity for cross-pollination of ideas, there are fewer unspoken assumptions, less “group think” and a greater likelihood of innovation. This allows the board to ask the probing questions and tackle the challenging issues, such as risk management and succession planning, which are at the center of good corporate governance.
”Exxon Mobil must allow climate change vote: SEC”
”Morningstar Introduces Industry’s First Sustainability Rating for 20,000 Funds Globally, Giving Investors New Way to Evaluate Investments Based on Environmental, Social, and Governance (ESG) Factors”
”CHICAGO, March 1, 2016—To help investors evaluate funds based on environmental, social, and governance (ESG) factors, Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today introduced the Morningstar Sustainability RatingTM for funds. The new rating will enable investors around the world to evaluate mutual funds and exchange-traded funds based on how well the companies held in their funds are managing their ESG risks and opportunities.
Jiji Press: “3 Ex-TEPCO Execs Indicted over March 2011 N-Disaster”
“Tokyo, Feb. 29 (Jiji Press)–Three former executives of Tokyo Electric Power Co. <9501> were forcibly indicted Monday by court-appointed lawyers serving as prosecutors over the unprecedented triple meltdown at its Fukushima No. 1 nuclear power plant.
”Expert Perspectives on ESG Issues – The End of the Beginning”
”Beginning in the 1990s, a silent revolution began to transform how business dealt with environmental, social, and governance (ESG) issues.
Cary Krosinsky: “Sustainability is ESGFQ – How to Measure Your Investments on Sustainability”
Q – Quality of management is something that can be achieved only by direct interaction and investor judgment. Hence, sustainability inevitably needs human interaction, face-to-face dialogue and understanding that management is committed to full integration of sustainability — walking the walk, not just talking the good talk.