Dalton’s call to Japanese regulators to push for greater board independence and diversity is backed by 110 institutional investors with more than $900bn in assets under management

In a public letter, the foreign market participants contacted the Ministry of Economy, Trade, and Industry (METI), Financial Services Agency (FSA), and the Japan Exchange Group (JPX) to advocate for greater board independence and diversity across corporate Japan’s boardrooms.  The letter states that to encourage greater board independence and diversity, companies may need to change their hiring and promotion practices. Companies may need to broaden the criteria they use to select board members beyond traditional backgrounds, such as finance and law, to include individuals with diverse experiences and perspectives.

Promoting greater board independence and diversity is an ongoing effort in Japan. The government and various organizations are taking steps to improve corporate governance practices in the country, and companies will need to continue to adapt and evolve to meet these standards. 

Read the letter here.

English translation follows Japanese.