Daily Brief ESG: ROE Isn’t Rising Because Managers Don’t Think of the Value of the Company and Meaning of the Listing and more

• Even after the “TSE’s request,” the average P/B of listed companies has not increased. In addition, ROE, which can be considered a driver for corporate value expansion, has remained flat.
• Japanese managers tend to be caught up in formalistic thinking about whether or not a company is listed, and whether or not it’s listed on the highest market or not.
• Instead of being caught up in formalistic thinking, I would like managers to seriously rethink the value of the company and what it means to be listed.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Lippo Malls Indonesia Retail Trust’s ESG as “Adequate”, in line with its Environmental and Social scores. We deem Governance as “Weak”, despite the “Adequate” score in quantitative terms. Controversies are “Immaterial” and Disclosure is “Adequate”.