Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation

In August 2016, the Ministry of Economy, Trade and Industry (METI) established the Study Group on Long-term Investment (Investment evaluating ESG Factors and Intangible Assets) toward Sustainable Growth and since then, the study group has been holding discussions on ideal approaches to strategic investment for companies to enhance their mid- to long-term corporate value, methods that investors should take for evaluating companies from mid- to long-term perspectives, and ideal approaches for encouraging companies to disclose information and hold dialogues with investors. As part of this effort, METI compiled a guide that may assist corporate managers in holding dialogues with investors or in disclosing management strategies, non-financial information and other elements. It may also assist investors’ evaluation of companies’ performance and management therefor improving corporate value.

Issuer name

Ministry of Economy, Trade and Industry

More information

The guidance aims to contribute to deepening mutual understanding between companies and investors through information disclosure and dialogues and to encourage companies and investors to cooperatively create value. The guidance provides a basic framework consisting of the following items. Guidelines described in each item are to be utilized by companies according to their strategies and goals. 1. Value (which gives companies the core principles for their decision making on their future directions and strategies, e.g., corporate philosophies and visions); 2. Business models (frameworks in which companies are able to provide customers and society with value through their business and to lead results to sustainable corporate growth); 3. Sustainability/growth (material elements for making business models sustainable and keeping companies’ growth potential, e.g., ESG factors and potential risks); 4. Strategies (retaining and investing in management resources, intangible assets, etc. that support companies’ competitive edge and optimizing their business portfolio.); 5.Performance and KPIs (Key Performance Indicators) (financial and non-financial KPIs to assess companies’ financial performance and achievement of their strategies); 6. Governance

Reporting resources

True

Organizations covered by the instrument

All Companies

Industry scope

All/none specified

ESG coverage- S (Social)

Social Impacts & Value Creation

ESG coverage- G (Governance)

All

Status

Current

Country

Japan

Region

Asia Pacific

Date of publication

2017

Issuer type

Governments (governmental department, agency)

Reporting requirements

Codes, guidance, and questionnaires

Mandatory or voluntary

Voluntary

The geographical scope

National/federal

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