Japanese companies may struggle to meet rising expectations from global institutional investors amid change in board diversity standards, according to the latest report on Japanese corporates by MSCI ESG Research.
Just one-tenth of MSCI Japan Index firms have reached the 30% female board member threshold that the government is seeking for top-listed businesses, according to Moeko Porter, the author of the report.
That 30% level is already lower than the 40% target set by European peers, and the current situation could hinder Japan’s ambition to improve its standing as a global financial hub, she added.