METI Generates Report on Ideal Approaches that Small- and Mid-Cap Companies should Take in their Information Disclosure and Dialogues with Investors
Promoting information disclosure and dialogues tailored to the diversity of companies
January 10, 2019
The Ministry of Economy, Trade and Industry (METI) has advanced discussions under the Forum for Integrated Corporate Disclosure and ESG Dialogue in order to provide an opportunity for companies and investors to have dialogues by making use of the Guidance for Collaborative Value Creation*1.
Based on this, METI streamlined discussion results of the forum as a report released in May 2018 and presented future efforts called “Four Actions”*2. To advance one of the actions, i.e., “encourage improvement of quality and efficiency in disclosure and dialogue of small- and mid-cap companies,” in April 2018, METI convened “Kansai Subcommittee,” bringing together representatives of eight small- and mid-cap companies located in Kansai area.
METI hereby formulated and released a report of discussion results of the Kansai Subcommittee.
*1: The Guidance for Collaborative Value Creation is an abbreviation of the “Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation: ESG Integration, Non-financial Information Disclosure and Intangible Assets into Investment,” released on May 29, 2017.
*2: For further details of the Four Actions, see the previous press release below:
- METI Compiles “Four Principles” and “Four Actions” for Disclosure and Dialogues between Companies and Invest
Prior to the conveyance of the Kansai Subcommittee, the forum pointed out some challenges such as the importance for companies to enhance the quality of information disclosure and dialogues, even for such companies that cannot provide many resources to IR*3. Moreover, the Active Fund Manager Subcommittee, a body under the forum to provide an opportunity for active fund managers to have dialogues, pointed out the importance for small- and mid-cap companies to be committed to information disclosure and dialogues by making use of the guidance.
Against this backdrop, METI considers it important to hold discussions on efforts for encouraging such companies to effectively make use of the guidance and for sharing case examples of leading companies. To this end, in cooperation with participants of the forum, METI launched the Kansai Subcommittee bringing together representatives of Kansai-based companies with only a few employees responsible for IR.
*3: The term “IR” is an acronym for “investors relations” and refers to general activities that companies take to convey corporate information to investors.
2. Points of contention
The Kansai Subcommittee held discussions on the following issues as points of contention:
- Awareness-raising of challenges in disclosure and dialogues (business models and value-creating scenario, information on ESG factors, etc.);
- Ideal approaches to the guidance; and
- Ideal approaches to simple integrated corporate disclosure.
3. Outline of the report
Based on the discussion results of the Kansai Subcommittee, the report presents the following opinions:
- Concerning the disclosure of information on ESG factors, companies, first of all, should have dialogues with investors and endeavor to present to the investors their current situations, problems that they are aware of and future intentions even if they haven’t fully completed such activities yet.
- Companies should disclose their business models and strong points in a simple manner and aim to have dialogues that will lead to the next step.
- Companies should show the sustainability of their strong points and countermeasures against potential risks.
- Companies should clearly disclose information by bearing in mind the targets of the disclosure, such as investors or rating companies.
METI expects companies to refer to the report and the details of the discussions of the Kansai Subcommittee, effectively and efficiently disclose information in a manner tailored to their situations, and advance constructive dialogues with investors.
4. Report and other documents
- Report released by the Kansai Subcommittee (in Japanese)(PDF:888KB)
- Appendix of the report (in Japanese)(PDF:629KB)
- Presentation documents submitted by participating companies (in Japanese)(PDF:14,940KB)
- METI’ portal website ( The Guidance for Collaborative Value Creation” for corporate and investor dialogue, in Japanese)
- METI Formulates Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation
- METI Compiles “Four Principles” and “Four Actions” for Disclosure and Dialogues between Companies and Investors
- The Declaration of Active Fund Managers(PDF:147KB)
- Supporters of the Declaration of Active Fund Managers (as of May 18, 2018)(PDF:143KB)
- Summary of Report Compiled by the Active Fund Manager Subcommittee(PDF:74KB)
Division in Charge
Industrial Finance Division, Economic and Industrial Policy Bureau