ACGA response to METI Japan consultation on Growth Investment Guidance

2026-07-11

On 11 July 2026, ACGA submitted its response to Japan’s Ministry of Economy, Trade and Industry (METI) on the draft Growth Investment Guidance. The Guidance aims to encourage Japanese companies to allocate capital toward business segments capable of generating positive economic profit, where return on invested capital exceeds the weighted average cost of capital, and thus to support sustainable corporate growth.

ACGA supports the overall direction of the Guidance, particularly its emphasis on disciplined capital allocation, improved transparency around returns on capital, and more constructive dialogue between companies and investors. However, we caution that possible growth investment should not become a justification for companies to retain excessive cash or maintain inefficient balance sheets. Shareholder returns and growth investment are not mutually exclusive: companies that allocate capital effectively can deliver both sustainable growth and robust returns to shareholders.

The full response can be found here.