Daily Brief ESG: Slow Policy Shareholdings Reduction Is Similar Backdrop to Unclear Nomination Process for Directors and more

• Policy shareholdings don’t create tension in management and ensure the interests of minority shareholders. Secondly, holding shares that don’t create value can burden capital profitability and undermine shareholder interests.
• The increase in foreign ownership only changed the mindset of some company managers, but “TSE’s request” was enough to awake managers who had become accustomed to being protected by cross-shareholdings.
• If reducing policy shareholdings is viewed as HR issues related to the director election agenda, it makes sense why improvements haven’t progressed similarly to the unclear nomination process for directors.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Recordati’s ESG as “Adequate”, in line with its Environmental, Social and Governance scores. Controversies are “Material”, while Disclosure is “Strong”.