Japan: Room for improvement in sustainability practices

In Japan, the case for ESG investing is strong. This is given Japan’s unique geography and culture, as well as Japanese companies’ mixed ESG performance that suggest further room for improvements in sustainablity practices, according to Eastspring Investments. And this creates opportunities for long-term value investors.

“We have observed notable improvement in sustainability practices at many Japanese companies over the recent years,” says Samuel Hoang, Portfolio Manager at Eastspring Singapore. “For example, the number of companies that voluntarily hold media or investor briefings solely on sustainability issues has increased. There are now dedicated sections on ESG/sustainability even within regular financial results briefings. There are also more corporate disclosures on sustainability although Japanese companies on average still disclose less ESG data than their US and European counterparts.”

Read more at www.eastspring.com/lu.