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ACGA Post-Japan Delegation Advocacy Commentary

We are pleased to share with you our ACGA Post-Japan Delegation Advocacy Commentary, which highlights investor priorities for advancing corporate governance reform in Japan.

Japan has been advancing corporate governance (CG) reforms at a steady pace over the last decade, starting with Shinzo Abe’s three arrows in the early 2010s. In March 2023 TSE requested all Prime and Standard Market listed companies to adopt management conscious of cost of capital and stock price, with disclosures expected in corporate governance reports. Japan’s Financial Services Agency (FSA) followed in April 2023 with its Action Program for Accelerating Corporate Governance Reforms. These reforms along with other factors have helped equity markets in Japan to reclaim new highs. 

Japan now is having ongoing discussions for both Corporate Governance Code revision, as well as Companies Act amendment. This commentary identifies critical advocacy priorities based on a survey of ACGA Japan Working Group (JWG) investor members, clustered into key thematic areas with an impact on governance and shareholder returns. Please see the paper here for the key areas of investor focus in Japan’s governance reforms going forward.