Poor corporate governance is a spectre that has lingered over Japan for decades, but while improvements have been made over the last decade, investors may still be overlooking ESG opportunities and risks in the market.
JP Morgan Asset Management global market strategist Hugh Gimber described corporate governance standards as the "Achilles heel" of the Japanese equity market, but encouraged investors to consider the environmental and social factors as well. Improvements have been made in relation to corporate governance, beginning with former Prime Minister Shinzo Abe's 2013 ‘Abenomics' policy, which included a commitment to structural economic reform. Since then, the reforms have seen Japanese firms move towards Western corporate governance levels, and Gimber said the 2015 Corporate Governance Code ...
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