The Financial Services Agency (FSA) has presented future initiatives aimed at substantiating corporate governance reform, based on discussions at the Follow-up Council for the Stewardship Code and Corporate Governance Code, with the goal of promoting sustainable growth and enhancing medium- to long-term corporate value.
Key Points
1. Background and Objectives
- Formulated based on discussions at the Follow-up Council for the Stewardship Code and Corporate Governance Code (Chair: Professor Hideki Kanda, Professor Emeritus, University of Tokyo)
- Promotes substantive corporate governance reform based on autonomous consciousness reform by companies and investors
- Aims to truly contribute to companies' sustainable growth and medium- to long-term corporate value enhancement
2. Basic Approach
- Emphasizes promoting dialogue based on a "relationship of trust with constructive tension"
- Requires both companies and investors to autonomously advance consciousness reform
- Promotes substantive initiatives rather than formalistic responses
3. Implementation Bodies and Initiatives
- Clarifies future initiatives by the Financial Services Agency and Tokyo Stock Exchange
- Both institutions collaborate to promote corporate governance reform
- Sets specific action items to ensure effectiveness
4. Published Materials
- Main text of "Action Program 2025 for Substantive Corporate Governance Reform"
- Overview of Action Program 2025 (Appendix)
- Published on June 30, 2025
5. Related Materials Published
Survey on the Status of Stewardship Activities
- Surveys and analyzes the current state of institutional investors' stewardship activities
- Basic materials for promoting effective dialogue
Case Studies on Initiatives to Strengthen Board Functions
- Collects and organizes best practices for strengthening board functions in companies
- Introduces practical initiatives that can serve as references for other companies
6. Future Outlook
- Promotion of substantive initiatives for corporate value enhancement
- Activation of constructive dialogue with investors
- Further deepening of corporate governance reform
7. Contact Information
- Financial Services Agency, Planning and Markets Bureau, Corporate Disclosure Division
- Phone: 03-3506-6000 (main) Extensions 3659, 3849
This program is intended to make Japan's corporate governance more effective and support companies' competitiveness enhancement and sustainable growth.