Category

ESG

Jul 21
0

Daily Brief ESG: Don’t Forget to Check for Deemed Shares Even if a Company Have Reduced Its Policy Shareholdings and more

By | Daily Briefs, ESG

In today’s briefing:

  • Don’t Forget to Check for Deemed Shares Even if a Company Have Reduced Its Policy Shareholdings

Don’t Forget to Check for Deemed Shares Even if a Company Have Reduced Its Policy Shareholdings

By Aki Matsumoto

  • I believe the change in TOPIX float calculation criteria had significant impact on the pace of reductions last year. It’s necessary to pay attention to whether the pace will continue.
  • “Deemed shares held” are shares contributed to the retirement benefit trust, and the company retains the right to direct the voting rights. Remember that cross-held shares exist here as well.
  • I would like listed companies to settle the issue of policy shareholdings as soon as possible and focus on how to raise profit margins, which is the biggest issue.

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Jul 20
0

Daily Brief ESG: Tighter ESG-Wash Monitoring Will Follow the New Securities Report Disclosure Rule in in 2 Years? and more

By | Daily Briefs, ESG

In today’s briefing:

  • Tighter ESG-Wash Monitoring Will Follow the New Securities Report Disclosure Rule in in 2 Years?
  • Dredging Corp Of India: Lapse of Governance Controls

Tighter ESG-Wash Monitoring Will Follow the New Securities Report Disclosure Rule in in 2 Years?

By Aki Matsumoto

  • Only a while ago, there was debate in ESG Investing about “how effective ESG factors are in performance,” and rather skeptical viewpoint prevailed among investors. Where have these debates gone?
  • Since there is serious shortage of human resources of ESG analysts, the FSA is expected to take a certain amount of time to monitor the systems of investment management companies.
  • FSA will strengthen its monitoring ESG wash to ensure that there are no misstatements in the reports as listed companies will be required to include sustainability in their securities reports.

Dredging Corp Of India: Lapse of Governance Controls

By Nitin Mangal

  • Dredging Corp Of India (DCIL IN) has been seeing a heavy churn in top personnel lately, including the most critical sacking of MD and CEO, Mr. G.Y.V Victor.
  • It was reported that there has been suppression of facts, material misrepresentation of facts and false claims in support of his experience criteria submitted by GYV Victor.
  • This is a key governance red flag and the fact that the investigation was made after one year of his appointment indicates loopholes in the governance and recruitment controls.

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Jul 18
0

Daily Brief ESG: Governance of Companies in Which the Founder Owns Majority of the Shares Should Also Be Discussed and more

By | Daily Briefs, ESG

In today’s briefing:

  • Governance of Companies in Which the Founder Owns Majority of the Shares Should Also Be Discussed

Governance of Companies in Which the Founder Owns Majority of the Shares Should Also Be Discussed

By Aki Matsumoto

  • I hope that the investigation by SESC will lead to the establishment of compliance system for these IR vendors, although IR vendors have been left unchecked by insider trading regulations.
  • Apart from this issue, there is much room for discussion on the issue of governance for a company listed in which the founder owns more than 50% of the shares.
  • This is the same problem that occurs with parent-subsidiary listings. For increasing the listed companies, TSE has permitted the listing of companies in which the founder owns majority of shares.

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Jul 17
0

Daily Brief ESG: News Analysis on ESG Incidents of 2000+ South Korean Companies (2021) and more

By | Daily Briefs, ESG

In today’s briefing:

  • News Analysis on ESG Incidents of 2000+ South Korean Companies (2021)

News Analysis on ESG Incidents of 2000+ South Korean Companies (2021)

By Emily Jiwon Kim

  • Our analysis of 23,419 news articles on 2,699 companies reported between Jan 1 and Dec 31, 2021, reveals that a total of 623 companies had incidents related to ESG topics.
  • 167 companies (83.5%) among the 200 largest listed companies (KOSPI 200) were involved in ESG incidents.
  • Of the 23,419 news articles covering ESG incidents, 17,245 were related to KOSPI 200 companies, accounting for 73.6%.

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Jul 16
0

Daily Brief ESG: No Causality Between Shareholder Proposal Withdrawal and Share Price and more

By | Daily Briefs, ESG

In today’s briefing:

  • No Causality Between Shareholder Proposal Withdrawal and Share Price, but Dialogue Is a Good Thing

No Causality Between Shareholder Proposal Withdrawal and Share Price, but Dialogue Is a Good Thing

By Aki Matsumoto

  • I would like to discuss about the Nikkei article, “Shareholder Proposal ‘Withdrawn,’ Share Price Firm; Dialogue Leads to Compromise.”
  • Regarding “share prices of companies whose shareholder proposals are withdrawn are firm during sharp sell-off,” there seems little proof of causal relationship between withdrawal of shareholder proposals and stock performance.
  • Although Japanese corporate culture has tradition of doing everything without making a fuss, Japanese managers need to have serious discussion with shareholders on the balance between growth and shareholder returns.

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Jul 14
0

Daily Brief ESG: Skills Matrix Disclosures Give Us the Opportunity to See Through The “Sham Board and more

By | Daily Briefs, ESG

In today’s briefing:

  • Skills Matrix Disclosures Give Us the Opportunity to See Through The “Sham Board, Disclosures”

Skills Matrix Disclosures Give Us the Opportunity to See Through The “Sham Board, Disclosures”

By Aki Matsumoto

  • I would like to discuss about the Nikkei article, “More companies disclose skill matrix at June shareholder meetings.”
  • On the argument “it is unclear whether it will contribute to improve corporate governance,” the key is whether the company is building corporate governance with quality in rapidly changing days.
  • While it’s true that “the content of skill-matrix disclosure varies,” I expect that the process of selecting directors will be improved in the future as issues are clarified through disclosure.

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Jul 13
0

Daily Brief ESG: Dissolution of Parent-Subsidiary Listing Is Just the Beginning for a Slow Decision-Making Company and more

By | Daily Briefs, ESG

In today’s briefing:

  • Dissolution of Parent-Subsidiary Listing Is Just the Beginning for a Slow Decision-Making Company

Dissolution of Parent-Subsidiary Listing Is Just the Beginning for a Slow Decision-Making Company

By Aki Matsumoto

  • On June 1, the Nikkei Shimbun published an article titled “Shareholder Proposal to Toyo Suisan, Seeking Explanation of Parent-Subsidiary Listing. I would like to discuss the issues in the article.
  • Although some may have impression that this problem is on its way to being resolved due to dissolution of relatively large companies, in reality there are still many parent-subsidiary listings.
  • For companies that are slow to make management decisions, the dissolution of parent-subsidiary listings may be just the beginning, so the resolution of the parent-subsidiary listing issue has just begun.

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