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  5. Guidance for Integrated Corporate Disclosure Concerning Industrial and Product Safety Revised

Guidance for Integrated Corporate Disclosure Concerning Industrial and Product Safety Revised

- Promoting corporate disclosure of internal safety-related efforts to attract investors -

April 5, 2021

The Ministry of Economy, Trade and Industry (METI) believes that companies' efforts toward industrial and product safety should be further appreciated as a source of corporate value. To this end, it has examined and revised the Guidance for Integrated Corporate Disclosure Concerning Industrial and Product Safety formulated in February 2019, for the purpose of enhancing and spreading awareness of its content.

1. Background

METI considers it important for companies to enhance their corporate value by accelerating information disclosure concerning efforts that focus on industrial and product safety, to allow investors, banks and other financial institutions to evaluate them more favorably. For that reason, in February 2019, it formulated the Guidance for Integrated Corporate Disclosure Concerning Industrial and Product Safety, which companies are recommended to refer to in promoting disclosure of information on their safety-related efforts.

Based on the Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation formulated in May 2017, this guidance was formulated focusing on "safety" as a theme. It features "integrated thinking" based on a framework in which companies create a plan for corporate value creation along with a roadmap that incorporates corporate principles, business models, sustainability and growth, strategies, performance and key performance indicators (KPIs) and governance.

This guidance is expected to contribute to creating a virtuous cycle in which companies that disclose information based on integrated thinking (integrated corporate disclosure) can be favorably assessed by investors if they share information on efforts that focus on industrial and product safety through integrated reports; and these companies' safety-related efforts will contribute to improving corporate value.

2. Details of the revisions to the guidance

In order to assess the situation regarding the use of the guidance formulated in February 2019 and further promote it, METI has examined the guidance for the purpose of enhancing it and promoting its awareness.

As a result, it newly introduced examples of companies that have been evaluated as having particularly well-established information disclosure based on integrated thinking (integrated corporate disclosure), and included additional specific cases.

The ministry also organized KPIs for measuring a company's safety-related efforts (e.g., accident severity rate, accident frequency rate, implementing status of risk assessment, and number of recalls) so that investors can properly evaluate companies' efforts related to safety. At the same time, it experimentally organized measures to link the KPIs to corporate value.

In addition, METI has created a leaflet that outlines the guidance to encourage companies, investors, and other stakeholders to adopt it.

Related documents

Division in Charge

Industrial Safety Division and Product Safety Division, Industrial and Product Safety Policy Group

Related website