Embedding ESG principles in Japan’s future corporate DNA
Japan is the first country in the G7 to use foreign reserves for ESG investments, hoping to achieve a greener society and carbon neutrality by 2050. Japan was also one of the first Asian countries to adopt a Stewardship Code, in 2014, which identified investor-corporation cooperation as fundamental to sustaining and supporting growth.This was followed by the Corporate Governance Code in 2015, elaborated by the 2018 and 2021 revisions of the code, which further accelerated the expectations of transparency, board independence, diversity, ESG and sustainability. Japanese companies, while they are aligned with some of the principles of ESG, do struggle to find the right balance between improving their corporate value over the medium to long term and maximizing the benefits for shareholders and stakeholders. To achieve such an ambitious agenda with corporate transformation, the public and private sectors across industries must cooperate and create an eco-system for sustainable growth. More incentives are needed from the government to scale-up both the supply and demand for sustainable investments; at the same time, companies should seek innovative solutions for the future.Join us in this lively discussion with multiple stakeholders to examine the best practices, strategies and challenges that are ahead for Japan, Inc. as it embarks on a journey to revitalize its economy in 2022 and beyond.