Category

ESG

Aug 26
0

Daily Brief ESG: More Companies Submitted Shareholder Proposals and more

By | Daily Briefs, ESG

In today’s briefing:

  • More Companies Submitted Shareholder Proposals, but All Were Rejected. Where Is the Problem?

More Companies Submitted Shareholder Proposals, but All Were Rejected. Where Is the Problem?

By Aki Matsumoto

  • Even though shareholder proposals have increased, only 77 of the more than 2,000 companies with a fiscal year ending in March have submitted shareholder proposals, or only a few percent.
  • Japanese institutional investors begins to examine the content of proposals and exercise their voting rights. It’s serious matter that until now they haven’t exercised them in accordance with Stewardship Code.
  • It will still take substantial amount of time to move away from a shareholder meeting protected by a cross-shareholding structure and toward a shareholder meeting that promotes dialogue with shareholders.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Aug 23
0

Daily Brief ESG: Can Companies Barely Meet Independent Director Requirement and Shy Away from Diversity Create Value? and more

By | Daily Briefs, ESG

In today’s briefing:

  • Can Companies Barely Meet Independent Director Requirement and Shy Away from Diversity Create Value?

Can Companies Barely Meet Independent Director Requirement and Shy Away from Diversity Create Value?

By Aki Matsumoto

  • The number of companies that meet the requirement has increased since the listing criteria for prime market specified specific numbers. However, the majority of companies have managed to meet 30%.
  • It’s clear that once the numerical criteria for board diversity as well as ％ independent directors were specified, it would have gone all the way. But this couldn’t be done.
  • It is concerned that Japanese companies may be distancing themselves from the need to listen to a wide range of opinions and create new value.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Aug 22
0

Daily Brief ESG: More Companies Are Hiring Women Directors and more

By | Daily Briefs, ESG

In today’s briefing:

  • More Companies Are Hiring Women Directors, but to Solve the Fundamental Problem of Diversity

More Companies Are Hiring Women Directors, but to Solve the Fundamental Problem of Diversity

By Aki Matsumoto

  • It shows that many companies still do not recognize the importance of diversity and that the hiring of women independent directors is merely a numbers game.
  • In Japan, there is the belief that a close-knit organization is more effective in achieving its goals, and there is a practice of excluding different opinions by emphasizing homogeneity.
  • In addition to the repeated disregard for women’s rights, the deep-seated problem of accepting this disregard is the reason diversity has not truly progressed.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Aug 21
0

Daily Brief ESG: ESG Risks of Cryptocurrency: Shinhan & Woori Bank Caught in Suspicious Foreign Exchange Transactions and more

By | Daily Briefs, ESG

In today’s briefing:

  • ESG Risks of Cryptocurrency: Shinhan & Woori Bank Caught in Suspicious Foreign Exchange Transactions

ESG Risks of Cryptocurrency: Shinhan & Woori Bank Caught in Suspicious Foreign Exchange Transactions

By Yujin Oh

  • Recently, Shinhan and Woori Bank, biggest commercial banks in Korea, have gone under investigation for their abnormal foreign exchange transactions. 
  • The incident was categorized as “Risk Oversight” of among 17 ESG issues as the banks are failing in internal control
  • There are various potential ESG risks lie with the transactions of cryptocurrency in corporates.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Aug 20
0

Daily Brief ESG: Interest Will Be Focused on when the TSE Will Begin Cleaning up the Prime Market and more

By | Daily Briefs, ESG

In today’s briefing:

  • Interest Will Be Focused on when the TSE Will Begin Cleaning up the Prime Market

Interest Will Be Focused on when the TSE Will Begin Cleaning up the Prime Market

By Aki Matsumoto

  • The listing criteria regarding trading volume is much simpler than other criteria. It’s clear that an average daily trading value of 20 million yen isn’t sufficient liquidity for many investors.
  • Many companies that fail to meet listing standards have low expectations for future cash flows, which leads to low valuations and is the reason for sluggish trading volume.
  • Keeping these companies in prime market is expected to lead to more focus on this issue, as the gap between these companies and their exact opposites will widen further.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Aug 16
0

Daily Brief ESG: The Key to Creating Added Value Is to Shift to Management that Values Human Resources and more

By | Daily Briefs, ESG

In today’s briefing:

  • The Key to Creating Added Value Is to Shift to Management that Values Human Resources

The Key to Creating Added Value Is to Shift to Management that Values Human Resources

By Aki Matsumoto

  • I would like to discuss the issues on several interesting points in the report “Vision for Future Human Resources” compiled by the Ministry of Economy, Trade and Industry (METI).
  • Both company and employees have seen a gap between the skills they need and the reality, yet neither company nor employees have invested sufficiently. This has led to falling competitiveness.
  • Companies need to invest sufficiently in human resources to create added value from management that has been so busy cutting costs that it has saved to invest in human resources.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Aug 14
0

Daily Brief ESG: Mandatory Disclosure of Gender Wage Differentials Is Still a First Step and more

By | Daily Briefs, ESG

In today’s briefing:

  • Mandatory Disclosure of Gender Wage Differentials Is Still a First Step

Mandatory Disclosure of Gender Wage Differentials Is Still a First Step

By Aki Matsumoto

  • There is the problem that a wage gap exists between men and women even among regular employees, and that the percentage of non-regular workers is very high among women.
  • Issues to be addressed include the creation of a social infrastructure in which workers don’t have to leave jobs due to childbirth or child-rearing, and fair wages for non-regular workers.
  • Mandatory disclosure is an important step. Managers should also think of employees as partners in creating new value, rather than simply as labor, which will help to eliminate this issue.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Aug 12
0

Daily Brief ESG: Japan’s Gender Gap Index Remains Low. Power to Change the Existing Structure Is Still Invisible. and more

By | Daily Briefs, ESG

In today’s briefing:

  • Japan’s Gender Gap Index Remains Low. Power to Change the Existing Structure Is Still Invisible.

Japan’s Gender Gap Index Remains Low. Power to Change the Existing Structure Is Still Invisible.

By Aki Matsumoto

  • In the area of politics, where there is a noticeable lag, there is a system in the electoral system that actually discourages aspiring politicians from becoming politicians.
  • The social structure of male dominance is nothing more than maintenance of that structure by groups with vested interests, and risk exists that sensitivity to new values will be dulled.
  • Without the forces at work to change existing social structures, the gender gap index isn’t expected to change much next year, but so far we don’t see such forces now.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Aug 10
0

Daily Brief ESG: Voting Rights that Fulfill Fiduciary Duty Are a Key for Tense Corporate Management Practices and more

By | Daily Briefs, ESG

In today’s briefing:

  • Voting Rights that Fulfill Fiduciary Duty Are a Key for Tense Corporate Management Practices

Voting Rights that Fulfill Fiduciary Duty Are a Key for Tense Corporate Management Practices

By Aki Matsumoto

  • As discussed in my previous article, when the % of foreign shareholders increases, companies tend not to bring up the continuation of takeover defense measures at shareholder meetings.
  • The threshold level, so to speak, of the % of foreign shareholders that determines whether or not to continue takeover defense measures is estimated to be in the 30% range.
  • If other domestic institutional investors follow, threshold level will be lowered and lead to a more tense corporate management, which will have a positive effect on the board of directors.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Aug 08
0

Daily Brief ESG: Make Us Consider the Issues on Anti-Takeover in a Company with Reduced Stake of Founding Family and more

By | Daily Briefs, ESG

In today’s briefing:

  • Make Us Consider the Issues on Anti-Takeover in a Company with Reduced Stake of Founding Family

Make Us Consider the Issues on Anti-Takeover in a Company with Reduced Stake of Founding Family

By Aki Matsumoto

  • Eisai, which had more than 30% of foreign shareholdings, had retained anti-takeover measures while incorporating the opinions of foreign shareholders, and has background of seeking reconciliation through enhancing its governance.
  • While foreign shareholders had voted against Mr. Naito, president who retained anti-takeover provision, most Japanese shareholders had voted in favor, showing “support” him at the shareholders’ meeting.
  • It’s likely that Eisai will retain “contingency” anti-takeover, but if the founding family will use it to retain its position, this isn’t consistent with the goal of maximizing corporate value.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free