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Report Titled “Japan’s Efforts for Encouraging Companies to Integrally Disclose Business Reports, etc. and Securities Reports” Compiled

Aiming to realize the most effective and efficient approaches in the world to encourage companies to disclose their information to current and potential investors to improve the investment environment in the long term, a national goal set under the Future Strategy 2017 (approved by the Cabinet on June 9, 2017), the Ministry of Economy, Trade and Industry (METI) and related ministries and agencies have jointly been holding discussions across institutions and ministries and agencies to develop an environment in which companies are smoothly able to disclose their information. As part of this effort, the government compiled a report on actions and related future efforts that Japan should take to encourage companies to smoothly and integrally disclose their business, securities and other reports.

1. Background

To further improve mid- to long-term corporate value, companies need to engage in efforts for effective corporate governance reform, and, as one of these efforts, they should impartially provide current and potential investors with sufficient information to allow such investors to engage in constructive dialogue with the companies, ultimately encouraging long-term investment.

Companies should take information disclosure approaches that even businesses with minimal  internal resources for such disclosures, such as middle-sized companies, SMEs, and especially venture companies that are often leading players in growth fields despite their minimal resources, are able to undertake effectively.

The Future Strategy 2017 set the goal that “Japan should realize most effective and efficient approaches from a global standpoint to encourage companies to disclose their information by around the first half of 2019.” To achieve this goal while also taking the improvement of investor-friendliness and the reduction of administrative burden of companies into consideration, the Cabinet Office and related ministers and agencies, (the Financial Services Agency, Ministry of Justice and METI), decided to stipulate specific approaches to encourage companies to smoothly and integrally disclose their business, securities, and other reports. To this end, they jointly held discussions across institutions and ministries and agencies and compiled a report titled “Japan’s Efforts for Encouraging Companies to Integrally Disclose Business Reports, etc. and Securities Reports” concerning their actions and related future efforts to harmonize similar and related items in the formats of business reports and securities reports to the greatest extent possible by around the end of FY2017.

The related ministries and agencies will jointly strive to further improve the environment to allow companies to be able to smoothly disclose their information.

2. Efforts for encouraging companies and investors to engage in constructive dialogues

As its own effort, METI compiled the Guidance for Collaborative Value Creation in May 2017, which serves as guidelines that can assist business owners in holding dialogues with investors and in disclosing management strategies, non-financial information and other data and evaluating companies’ initiatives therefor as efforts for improving corporate value. Following this, it established the Forum for Integrated Corporate Disclosure and ESG Dialogue in December 2017, as an opportunity for companies and investors to engage in dialogues in accordance with the guidance.

Following the above report, METI will continue to advance the development of the environment in which companies and investors are smoothly able to hold constructive dialogues.

Release date

December 28, 2017

Divisions in Charge

Industrial Finance Division & Corporate Accounting, Disclosure and CSR Policy Office, Economic and Industrial Policy Bureau

Ministry of Economy, Trade and Industry1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
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