30% Club Japan
Investor GroupANNUAL REPORT 2021

Introduction

CONTENTS

1
2
3

4
5

About 30% Club Japan 
History of the 30% Club
Features of the 30% ClubThe 30% Club Japan
Our Goal and the Progress to Date

3

Developments on Diversity in Japan in 2021 
Revision of the Corporate Governance CodeResearch on Gender Investment by the Cabinet Office4

Activities of the 30% Club Japan Investor Group 
Activities and Goals of the Investor Group
Investor Group Engagement Principles andRole of Institutional Investors
Engagement Principles
Exchanging opinions with the Japan Federation of Bar
Associations and the Japanese Institute ofCertified Public Accountants
Best Practice of Engagement - Case Study
Thought Leadership Events
Gaining new members

7

Female Leader Interview Series 
Ms. Emiko Higashi
Ms. Kathy Matsui
Ms. Yuko Kawamoto
Ms. Anna Dingley

16

Future Plans 

19

The 30% Club Japan Investor Group, which consists of institutional investors, is one of the working groups of the 30% Club Japan and wasofficially launched on 1 May 2019. As of the end of December 2021, we
have 28 member companies and has grown into a highly influential
organization.
The institutional investors in the Investor Group believe that board
composition and leadership are important for sustainable growth incorporate value, and that companies with diverse perspectives are better able to make decisions. Diversity in terms of gender, nationality, age
and background is becoming more and more important. In this context, we believe that Japanese companies should focus on gender first,
so that other aspects of diversity can be promoted and the potential
for sustainable growth in corporate value will be enhanced.
This report shares the work of the Investor Group, with a particularfocus on the Best Practice Subgroup’s work on the collection and sharing of best practice in engagement. In addition, the report provides
an overview of recent progress in improving corporate governance inJapan, an institutional investor’s perspective on gender and diversity,and comments from experts in each area. The series of interviews withfemale directors conducted by the Thought Leadership Subgroup havebeen enhanced since last year. The interviews are very thought-provoking and cover topics such as the relevance of diversity to boards
and corporate governance, how to develop female employees, theirviews on corporate growth strategies, and their own career histories.
We expect that our work on the thought leadership will create more
opportunities for both companies and investors to raise awareness andpromote mutual understanding. We hope that all the listed companies
and institutional investors will find this report useful in the day-to-day
engagement activities.

Introduction2

1

About 30% Club Japan
History of the 30% ClubFounded in the United Kingdom in 2010, 30% Club is a global campaign to increase the proportion of women on boards and other key
decision-making bodies in companies to achieve sustainable growth.
Only the top executives (president, chairman, board chairman) who
agree with the aims of the 30% Club can become members. It is currently deployed in 18 countries and regions, and the number has been
increasing every year.
The name “The 30% Club” comes from the fact that the minimum
number of people needed to influence a decision, “the critical mass”
is 30%.

2

Features of the 30% ClubThe 30% Club has made a significant contribution to increasing the
proportion of women on boards in the countries where it operates. andits success can be attributed to its ‘integrated approach’. The various
sectors that are important in achieving gender equality share common
goals and work in a mutually reinforcing way to achieve gender equality
in more effective and efficient manners. The 30% Club works not onlywith companies, but also with financial institutions (especially institutional investors), media, universities, governments, professional services
firms (consulting firms, law firms, etc.) and Executive Search Firms.

Developments on Diversity inJapan in 2021
Revision of the Corporate Governance Code
The Corporate Governance Code, which was revised in June 2021,
requires “Approach to ensuring diversity in core human resources(promotion of women, foreigners, mid-career employees, etc.) and establishment and disclosure of voluntary and measurable targets” and“Disclosure of policies for human resource development and internal
environmental improvement for ensuring diversity and the status of
their implementation”. Diversity encompasses a variety of concepts,
and Japan lags behind other countries in terms of gender, nationality,
and age. Among these, 30% Club Japan Investor Group is paying attention to gender diversity. We hope that this code revision will lead tofurther progress in ensuring diversity in Japanese companies.
In order to respond to the new business environment in the postCovid era, we believe it is necessary to enhance our ability to create
innovation, respond to changes in the business environment, and compete for human resources. To this end, we recognize that ensuring diversity is essential for corporate management.
From the perspective of institutional investors, what we expect theinvestee companies is not only to increase the ratio of female directors
and corporate auditors, but also to make efforts to increase the ratioof women in the company’s talent pool. In order to do this, companies
need to take many measures, such as improving the working environment. Above all, it is important for top management to communicate
the reasons for the need for diversity and its goals both inside and outside the company, and to make employees aware of the importance ofdiversity. It often takes time to see the benefits of promoting diversity,and some companies find it difficult to disseminate the importance ofdiversity throughout the company. We look forward to the continued
efforts of management through the D&I Committee and other means.

The 30% Club Japan
In Japan, Michiko Tadamatsu of Deloitte Tohmatsu Consulting LLC (atthe time) established a branch in Japan and officially started its activities as the 30% Club Japan on 1 May 2019. In July of the same year, Mr.
Masahiko Uotani (President and CEO, Shiseido Co., Ltd.) was appointed
as the first Chairperson. The number of members has increased from30 at the time of establishment to 73 as of September 2021.
*Please refer to the 30% Club Japan website for the member list.

Our Goal and the Progress to Date
Increase the ratio of female executives in the top 100 TOPIX
companies to be 30% by 2030

At the same time as securing the diversity of human resources throughrecruitment, etc., the awareness of the accepting side such as managers (Inclusion) will become very important. Unconscious bias is often an
obstacle to inclusion, and we expect to implement measures to change
the awareness of managers through in-house training and other means.

*Executives are defined as board of directors and auditors.

The ratio of female executives in TOPIX100
as of the end of June 2021: 14.8%
Reference: The ratio of female directors is 14.2%

A member of the Stewardship Code andthe Corporate Governance Code Follow-up Meeting
Mr. Hiroki Sampei, Representative of The Astonering Advisor GK

The ratio of female executives in TOPIX400
as of the end of June 2021: 11.8%
Reference: The ratio of female directors is 11.7%(Note: Calculated by the Investor Group based on the data of IR Japan,
companies’ annual reports, etc.)

Companies in TOPIX100 with no female executives: 3

Mr. Hiroki Sampei

Reference: Seven companies have no female directors

3

About 30% Club Japan

Developments on Diversity in Japan in 2021

The consistent keyword in this revision of the Corporate Governance Code is “change.”
Companies must anticipate changes and revisit their purpose; that is, they must be
highly receptive to various perspectives. Therefore, the importance of incorporating
different opinions and ideas (D&I) is emphasized. In the previous revision in 2018,
the necessity of the board diversity had been emphasized, while the revision in 2021
deepens and broadens the spirit of the diversity to the entire company. Now the newcode requires the listed companies to face a challenge with help of different views

4and ideas. I believe that D&I is based on the “emphasis on the individual” and the “autonomy of each individual.” I would like to expect 30% Club Japan’s activities should
promote the creation of a system to establish and penetrate D&I to the society andalso raise the awareness of the importance of diversity.

Research on Gender Investment by the Cabinet Office
In March 2021, the Gender Equality Bureau of the Cabinet Office issued the Report on the Study of Gender Investment. The purpose of
the survey was to collect examples of gender investment in Japan andoverseas, and to promote gender investment through analysis of theseexamples. The survey also included interviews with capital market participants about their efforts and information, and several members of
the Investor Group also participated. In addition to the ratio of female
directors, the top management's commitment and management strategy are considered important issues for institutional investors, and it
is expected that quantitative information disclosure will be expanded
and future targets will be presented. The initiatives of the 30% ClubJapan initiative were also mentioned in the report. With regard to diversity issues, the report points out the importance of being aware offoreign perspectives, and the importance of engaging a wide range ofcompanies and capital market players who have not previously been
positive about diversity through the integrated approach that the 30%
Club Japan aims for.
The Report on the Study of Gender Investment
https://www.gender.go.jp/policy/mieruka/company/pdf/r2gender_lens_investing_research_02.pdf
Hiroko Tokuda, Head of ESG, Japan Investment Advisory Association
Planning Committee member of Gender Investment Study

Hiroko Tokuda

Interest in gender investment among institutional investors has clearly increased inrecent years. The most common piece of information on gender diversity that institutional investors use is the female executive ratio; in our survey, approximately 80%
of investors responded that they use it. Institutional investors seek information on thecomposition of the board of directors and initiatives to promote the advancement of
women, because they believe that such information is relevant to improving the medium-to long-term value of the company. In the future, the gender issue will become
more relevant than ever in the engagement between companies and institutional
investors. I believe that a deeper and mutual understanding of the significance of acompany's gender diversity initiatives will further enhance the effectiveness of these
initiatives.

Gender Equality Bureau Cabinet Office – Intensive Policy 2021
In June 2021, the Intensive Policy for Gender Equality and the Empowerment of Women was announced. The Policy defines priority issues
to be addressed in order to achieve the goals and implement themeasures set out in “the Fifth Basic Plan for Gender Equality”. The
Policy also include various initiatives aimed at promoting women in
the workplace.
Intensive Policy for Gender Equality and Empowerment of Women 2021
https://www.gender.go.jp/english_contents/index.html

5Developments on Diversity in Japan in 2021

3

Activities of the 30% ClubJapan Investor Group

Exchanging opinions with the Japan Federation of Bar Associations
and the Japanese Institute of Certified Public Accountants
In order to enhance our understanding of corporate governance andgender diversity initiatives, the Investor Group hold meetings with female independent directors to exchange ideas. In addition to gaining abetter understanding of the activities and challenges faced by female
independent directors, we also communicate to them what we would
like to see in the corporate governance of Japanese companies fromthe perspective of institutional investors.

Activities and Goals of the Investor GroupThe Investor Group is a working group consists of institutional investors. The purpose of the Group is to enhance the medium- to longterm corporate value of the companies they invest in and to maximize
shareholders value by promoting corporate gender diversity.
Institutional investors participating in the Investor Group promotestewardship activities based on the belief that improving diversity contributes to sustainable growth in corporate value.
The members have agreed to the Statement of Intent and will act intheir sole discretion and in accordance with their own internal policies
and procedures, including those relating to confidentiality and antitrust matters.
Investor Group Engagement Principles andRole of Institutional Investors
In the investment chain, investee companies and institutional investors
have a win-win relationship that shares the goals of sustainable corporate value expansion and long-term investment performance. Basedon such relationships and mutual trust, one of the important roles of
institutional investors is to engage in constructive dialogue (engagement) and discuss various measures to achieve sustainable growth incorporate value through improvement of gender diversity.
Engagement Principles
The basic principles of the Investor Group’s engagement are as follows:• The Investor Group aims for 30% of women to participate in board meetings and executive management as a critical mass, influencing decision-making and leading to sustainable growth in corporate value. In Japan, however, there is a significant shortage of talented people with business- experience, and we recognize that the environment in which
each company and industry is placed differs. Therefore, it is important for companies
to recognize the benefits of diverse organizations on their boards and to pragmaticallyconsider the appropriate level of diversity at the top management level.
• For companies that do not have diversity initiatives, discussions may take place throughopportunities such as engagement in a manner that is consistent with the guidelines andpolicies of individual investors.

Meeting with Japan Federation of Bar Associations (JFBA)
Held in person and online simultaneously on 23 March 2021
JFBA complies a list of female lawyer members and female foreign special members
who are interested in becoming candidates for independent directors and auditors,
and provides this list to companies that are considering appointing female independent directors. The Best Practice Subgroup of the 30% Club Japan held a meetingwith the members of the Committee on Realization of a Gender-Equal Society at theJapan Federation of Bar Associations (the Project Team for Female Lawyers Outside
Officers) to discuss the following points.
• How a lawyer can contribute to strengthening corporate governance• Expectations to enhance supervisory functions through the diversity of the Board• Roles of Nomination and Remuneration Committees and Chairmen of the Board• Importance of the role of the Board Secretariat

Ms. Shiho Konno, Representative Attorney at Shiho Konno Habataki
Law Office, A member of Committee on Realization of a Gender-Equal
Society at the Japan Federation of Bar Associations (leading the Project
Team for Female Lawyers Outside Officers)
Ms. Shiho Konno

I learned a lot from the opportunity to hear the opinions of institutional investors.
Investors are encouraged by the outside world to reach out to companies from within
as board members who are outside directors. I felt that they are working hard to
improve corporate value over the medium to long term while building a cooperative
relationship.

Meeting with Japan Institute of Certified Public Accountants (JICPA)
Held in person and online simultaneously on 8 April 2021
We held a meeting to exchange opinions with female directors who belong to theBoard Support Committee as CPAs. This is the second meeting with JICPA following
the first one held in November 2020. We discussed what measures could be taken
to improve corporate governance and diversity in order to increase corporate values.
There were active opinions from both sides on the following points.
• Enhancement of supervisory functions and roles required of independent directors• Roles and Importance of Nomination and Remuneration Committees• Needs for a support system for the activities of independent directors• Feedback from the capital market of corporate governance• Investors in the Investor Group will share the company’s challenges through engagement and communicate the importance of gender diversity as they discuss solutions.
• The Investor Group will, to the extent permitted by law, share and discuss ideas, engagement results and know-how regarding the appropriate level of diversity of the company, and make efforts to enhance each company's engagement. Public institutions will
work on a best-effort basis within legal constraints.

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Activities of the 30% Club Japan Investor Group

Activities of the 30% Club Japan Investor Group8

Be st P ra ct i ce of E n g ag emen t– C a s e St u dy

1Issues identified
by Investor Group X

9Company

Company
Issues identified
by Investor Group Y

Company B, one of TOPIX Mid 400 companies, is a major material manufacturer in the ceramic and clay products industry. Just like other upstream materials companies, the ratio of female employees and managers is not high. As
the main capital of the company is a factory that produces materials for the
infrastructure industry 24 hours a day, using fossil raw materials from mines
and waste and by-products as raw materials and fuels; this might have made itdifficult for women to play an active role in this area.
It is estimated that these industry characteristics have influenced the company’s women-related indicators, including those in the non-manufacturing divisions. Nonetheless, Company B has positioned “Diversity” as one of its three
long-term CSR goals that were set in 2015, and has set aggressive targets ofthe female employment ratio in career-track positions, female employees’ ratio
and the appointment of women to management positions, and are working toachieve these targets. In light of this, Investor Group Y has started a “Dialogue
on Objectives concerning Women’s Participation and Advancement” with
Company B on the following three aspects. (1) To confirm the background ofCompany B’s goal setting and the effectiveness of its initiatives, in the face ofindustry-specific difficulties; (2) to obtain support for the Investor Group Y’s
hypothesis that the promotion of women’s workplace participation is effective
to overcome Company B’s management issues, and to share the understanding
between the two companies; and (3) to discuss how the company can improvedisclosure and communication with the market in order to increase the corporate value, and to eliminate the discount for the industry.

Engagement
Details and Commentsfrom the Company

While the dialogue about the management issue is usually held with the management team, in light of the purpose of confirming the background and effectiveness of the target setting and initiatives, we had a group dialogue thistime, including five people from Company B (from CSR and IR/PR), and ananalyst, a fund manager and a person in charge of voting rights from Investor
Y. Company B cited the fact that it had many contacts with foreign companies, and the idea that the promotion of women’s participation in the workplace would contribute to the creation of an innovative labor force was easily
disseminated within the company as the reason for its active promotion ofdiversity, despite the difficulties as a job category. It was also confirmed thatthe company has the systems in place to raise awareness of this issue (e.g.
encouraging young employees to work overseas), and to smoothly acceleratethese initiatives (e.g. relaxing the grounds for transferring to a new position,such as limiting the scope of transfer). As a result, Company B has received
positive results in terms of recruitment and organizational management, andwas able to recognize its willingness to take positive steps in the future.
Investor Group Y communicated that the company’s information dissemination appeared to be modest compared to the level of its efforts and awareness,and requested disclosure of data showing the results of the initiatives. We had
two engagement opportunities, and the second one was held after collecting
information on overseas companies that Company B mentioned, which allowed
us to further deepen the discussion.

A (Retail)Company A is a leading retailer and is a TOPIX 100 company. The company has promoted development of diverse talents, and Investor Group X has
evaluated that steady progress has been made, including the establishmentof an expert committee to promote diversity and efforts to improve work-lifebalance. They were also proactive in enhancing transparency, and their existing
disclosures including the historical changes in the ratio of female managers
and employees have been especially beneficial for investors. As a result, thecompany was relatively advanced in terms of development of female leaders,
but they did not have any female directors. While Investor Group X welcomedthat the Company A refreshed independent directors considering the diversityof the skill set and balance of the board of directors, they engaged with thecompany to discuss the possibility of appointing female directors, taking into
account the characteristics of its product and the customer base, and thinking
that it might lead to the further revitalization of the board of directors anddiverse discussions.

Engagement
Details and Commentsfrom the Company

Investor Group X has had multi-year engagement with the management teamsof Company A, and has been able to share awareness of the board diversity.
In the past, they had focused on adding the perspective of a person with experience in corporate management to the board. But the company explainedthat it now has several people with management experience from different
companies and that they are now considering appointing female or younger
directors. Investor Group X learned that the company is aware of the need to
improve diversity from the perspective of improving the board effectiveness.
It was also confirmed that the company recognizes that the development offemale leaders internally is necessary for further business growth. During therecent discussions about the board composition and the process of selecting
director candidates including women candidates, the company explained tothe investor group that its Nomination and Compensation Committee havepointed out that the promotion of female directors is an urgent issue. In addition, the independent directors have suggested that enhancement of sustainability initiatives and disclosure are also very important.

Engagement Results andFuture Prospects

At the Annual General Meeting held in June 2021, two female directors were
newly appointed. One is an independent director with DX expertise, which isin line with Company A’s strategic direction and will also contribute to the skill
set diversity of the board. The other is a director from within the company who
has been promoting human resource diversity for more than six years. Investor
Group X believes these appointments will contribute to a better board composition and the diversity, and lead to promote internal initiatives to improve
employees’ motivations in the development of next-generation leaders. Goingforward, Investor Group X would like to confirm through future engagements
the status of revitalization of the board meetings through the participationof female directors, as well as their contribution to the promotion of female
leadership in the entire company.

Best Practice of Engagement

B (Ceramics and Clay products)

2

Engagement Results andFuture Prospects

Best Practice of Engagement

Company B management is facing the challenge of transforming its businessstructure in terms of dealing with climate change issues and stagnant domestic demand. We hope that the company’s initiative to promote women’s participation in workplace will create a culture of diversity and inclusion, and that therecruitment of talented people and their achievement will help to overcome
these management issues and lead to a progressive management strategy. In
this regard, we would like to have another dialogue with the management inthis regard. We will continue a multi-layered dialogue on the promotion of gender diversity with Company B, which is proactively tackling this issue despite
the difficult nature of its industry.

10

3
Issues identified
by Investor Group Z

Engagement
Details and Commentsfrom the Company

Engagement Results andFuture Prospects

11

Company

Company

Issues identified
by Investor Group V

Company D, a medical device manufacturer, believes that diverse human capital is indispensable for achieving sustainable growth, and is working on ‘worklife integration’ aiming to balance work and life. The promotion of women’s
participation in the workplace is an important issue in promoting ‘work-life
integration.’ However, the ratio of female managers and employees, as well as
the ratio of male employees taking parental leave, are still at low levels. Since
2018, Investor Group V has had five engagements on the theme of diversity
and inclusion. As of August 2020, the percentage of women in managerial
positions was 3.6%, which is significantly lower than the percentage of women in full-time positions (15.8%). In FY2020, there were no female directors,
so in addition to conducting the engagement, the Company voted against all
members of the Nominating Committee in accordance with Investor Group V’s
proxy voting policy.

Engagement
Details and Commentsfrom the Company

During an engagement with Company D, Investor Group V highlighted that diversity is an important issue for all companies. When considering the shrinking
workforce in Japan, companies with diverse employee bases are likely to be
more competitive and better able to recruit the best talent, which, as shownin numerous studies, should have a positive impact on the company’s future
performance. The investor also requested Company D to explain their efforts
to promote diversity at the Board of Directors and at the company level, as
well as their future policies. The company recognized the absence of women
directors and the low ratio of women in managerial positions, and is working
to improve by 1) accelerating the development of female candidates for managerial positions, 2) enhancing the working environment to improve balance
work and life, and 3) strengthening their recruitment of women. The Japan
government’s most recent General Employer Action Plan based on the Act on
Promotion of Women’s Participation and Advancement in the Workplace aims
to increase the number of women in managerial positions, enhance work-lifebalance support programs such as telecommuting and childcare leave, andincrease the ratio of women newly hired as graduates. Additionally, Investor
Group V also focused on the ratio of male employees taking parental leave,
as it represents the ease of male employees’ participation in childcare, and it
is important for understanding the working environment and culture of thecompany.

Engagement Results andFuture Prospects

Company D’s diversity efforts have progressed rapidly over the past year, andat the 2021 Annual General Meeting they appointed a female independent
director. The ratio of women in the company as a whole is also increasing.
Management development programs, education for managers on employee
development, mentoring system with women managers as role models, andposition specific training at the time of promotion appeared to be successful.
Company D will continue to actively recruit women and support women’s careers, and will consider strengthening disclosure of its efforts. Member V hopes
to see further improvements from Company D. For example, the investor considers one woman director to be insufficient, and requested the company tocontinue improving the diversity of the board and the company as a whole.
Investor Group V will continue to monitor the company’s progress in promoting gender diversity.

C (Electrical equipment)

Company C is a globally expanding electric equipment manufacturer included
in TOPIX Mid 400. Although the company has been working to strengthen
corporate governance, improve disclosure and promote the active participation of female employees, it had no female directors yet. Investor Group Z had
the impression that Company C did not consider the appointment of female
directors as a high priority due to its business characteristics. Investor GroupZ has had continuous discussions with the company for several years about
ensuring diversity on the board, including female directors.
Investor Group Z has been holding continuous dialogues with the directors ofCompany C on ensuring diversity of the board since 2014. Although Company
C had been actively working on career support and medium- to long-term
development plans to promote the active participation of female employees,
Investor Group Z’s impression was that the appointment of female directors
was not a high priority for the Company C because of its business characteristics as a B2B electrical equipment manufacturer and of the fact that the female
employment ratio was not high enough. However, as Company C continued
to exchange views on ensuring diversity on its board of directors, including
the perspectives of women, at its almost annual dialogue with the Investors
Group Z, it began to incorporate the views of a range of investors, including theInvestors Group Z. and its perception of board diversity changed. In the latest
dialogue, Investor Group Z received a response from Company C stating that it
would like to ensure that the composition of the board of directors is balanced
in terms of gender, nationality and skills. In June 2021, the company appointed
a female independent director. In addition, in order to increase the number offemale director candidates within the company, Company C has establisheda talent development pool program, and has set specific numerical target for
female managers was set as one of the KPIs in the medium-term management
plan. In terms of the content of the initiatives, Company C is taking detailed
measures according to job level, such as formulating and checking the progress of development plans for each female leader candidate, and conducting
training for female employees to develop their careers and raise awarenessamong managers. Given the nature of its business where the ratio of female
employees is not high, it is highly commendable that Company C’s awarenessof improving governance has evolved over many years of dialogue, and that
Company C is proceeding with specific goal setting and initiatives.
Company C is willing to ensure a female perspective in terms of diversity on
the board of directors. In order to have female directors from within the company in the future, Company C is promoting a wide range of initiatives withspecific numerical targets, such as increasing the ratio of female managers
and expanding the number of new female employees and others etc. Investor
Group Z highly evaluates Company C’s measures, and will follow up on progress by continued engagement on how to further raise the target figures andachievements of various initiatives.

Best Practice of Engagement

D (Medical Equipment)

4
Best Practice of Engagement125Company

E (Office Equipment)

Issues identified
by Investor Group W

Company E is a major office equipment company in TOPIX Mid 400. The Boardof Directors appoints one female independent director out of 10. The company
has been very active in the disclosure of ESG, issuing environmental reports
since the 1990s and integrated reports since 2012. With regard to the environment, the Company E’s activities have been outstanding, including the participation in various global initiatives from the early stages. We also engaged
in dialogue to gain a deeper understanding of the relationship between its
social and human resource initiatives and the corporate value, and to convey
investors’ opinions on diversity.

Engagement
Details and Commentsfrom the Company

Company E has been actively engaged in ESG for many years and has made andextensive disclosures. In recent years, top management has expressed a message that it will work to resolve social issues through business and strengthen
the management base that supports it in order to realize a sustainable society.
Investor Group W held a dialogue with an Executive Officer who is in charge of
Sustainability and Human Resources. Regarding initiatives related to diversity,from the viewpoint of promoting the activities of diverse human resources andreviewing work styles to support work-life balance, various in-house study sessions and seminars were held and the structure to realize a flexible work-style
was introduced. In addition, as one of the indicators to measure the results ofvarious initiatives, the gap in the length of service between men and womenused to be greater for men than for women, but it has gradually narrowed overthe past 20 years, and since FY2015, there has been at the same level for bothgenders, with women sometimes exceeding men. It also shows the data of
number of male and female employees taking paternity leave and the utilization rate of the system, which has made the investor recognize that Company
E is actively addressing ESG issues such as diversity from the perspective of
expanding corporate value, with the commitment of top management. The investor group W invited Company E to join the 30% Club Japan as the company
was gradually achieving results through a wide range of initiatives aimed at increasing the value of the company in terms of building a future talent pipeline.
At the time, the company had not been finalized its participation in the Club,
because the absolute level of the ratio of female executives and managers was
not necessarily high, and because there were gaps in that level between its
domestic and overseas locations. Nonetheless, Investor Group W conveyed its
view that the level of Company E’s disclosure and efforts were highly appreciated and the company was well qualified, and that the participation in the Club
would even help motivate the company to take its commitment further.

Engagement Results andFuture Prospects

After that, Company E has officially decided to join the 30% Club Japan. The
company is currently restructuring its business portfolio and revamping its
organizational structure. We recognize that there is an affinity between initiatives to address ESG issues such as diversity and measures to expand corporate value. Investor Group W will continue the dialogue to see progress on
the company’s human capital strategy, including gender diversity on the board
and plans to develop talent pipeline.

13

Best Practice of Engagement

Thought Leadership EventsThe Investor Group will publicize the importance of gender diversity
in important decision-making bodies such as the Board of Directors
through events hosted by the Thought Leadership Subgroup. We alsoplan to continue to conduct a series of interviews with female directors
published in this report.
30 July 2021
The Thought Leadership Subgroup hosted a webinar entitled "How gender diversity
contributes to increasing corporate value”.
Facilitator
Yoshio Hishida
Investor Group Chair
President and Representative
Director, Sumitomo Mitsui Trust
Asset Management Co., Ltd.
Panelist
Ms. Masako Egawa
Distinguished Professor,
Graduate School ofManagement, Hitotsubashi
University
Ms. Miki Oikawa
Representative Director andPresident of POLA, Inc.
Ms. Akiko Koda
Director, Head of Executive
Office and Human CapitalManagement, Co-CAO,
Goldman Sachs Japan, Inc.

4

The 30% Club Thought Leadership Subgroup has interviewed six
women leaders so far and conducted four interviews in 2021.
In the interviews, we asked women leaders regarding issues andfuture prospects for promoting diversity at the board level as well as
throughout the company, and heard excellent advice for companies
and future female leaders.

Ms. Emiko Higashi(Managing Director, Tomon Partners)

It requires mindset changes for the entire
company if they really want to promote diversity
and promote employees regardless of gender.

The Investor Group is committed to sharing the challenges of improving awareness. We will take various opportunities to promote the importance of corporate value and gender diversity.

A Japanese and global perspective on the boardroom
Oasis Management’s Nasrine Ghozali interviews Emiko Higashi, Managing Director of Tomon Partners, about her perspective and experiences in the boardroom and throughout her career in investmentbanking, venture capital, and corporate strategy. Higashi, one of three
women among 300 managing directors during her time at Merrill Lynch,
has served on the boards of Stentor, Inc., ZEN Research, BUILD, KLA(NASDAQ), Rambus (NYSE), Takeda Pharmaceutical (TSE&NYSE), andSanken Electric (TSE). In addition, she has been involved in numerous
tech M&A transactions for clients including Cisco, DSP Communications,
Hyundai Electronics (Hynix), IBM, KLA-Tencor, and Xerox. From Tokyo
to Silicon Valley, Ms. Higashi shares openly about her professional
journey and path to the boardroom, covering challenges, successes,
mentors, views on Japanese corporate culture, and practical advice foraspiring board directors.

November 2020
Online media briefing on the Investor Group’s Annual Report, following the publication in October 2020

Gaining new members
The number of members of the Investor Group has increased to 28 asset managers and asset owners as of December 2021, which was only
four when it was first established. (Please see the page 20 for a list ofmember companies).

15

Female Leader
Interview Series

Activities of the 30% Club Japan Investor Group

Click here for the full interview
https://30percentclub.org/assets/uploads/UK/Interview_of_
Emiko_Higashi_final_J_disclaimer.pdf

Female Leader Interview Series*30% Club Japan website is under renewal as of March 2022.

16

Ms. Kathy Matsui

Ms. Anna Dingley(Former Vice Chairman of Goldman Sachs)(External Director, Nihon M&A Center)

Diversity is not optional; rather, it is essential for[the company’s] survival.

I think there is a very talented pool of potential
women directors in Japan, and companies haveto be creative in how to find them.

Womenomics and How to Nurture Female Employees
Chris Vilburn of Goldman Sachs Asset Management spoke with Ms.
Kathy Matsui, former vice chairman of Goldman Sachs, about thecurrent state of Japanese women’s empowerment, the key points tonurturing female employees, and why companies need to promote diversity. Ms. Matsui is a leader for women empowerment, having coined
the term “Womenomics” in her seminal report series beginning in
1999, and more recently published the book How to Nurture Female
Employees in 2020. Amidst a high unemployment rate among temporary and part-time employees due to the influence of COVID-19, Ms.
Matsui provides her views on the accelerating digitalization of work
and implementation of telework from the perspective of promoting
women’s advancement. She also talks about her early “Womenomics”
research, what has progressed during the 20 years up to “Womenomics
5.0” in 2019, and what remains to be done in Japan.

On Boardroom Diversity
Neuberger Berman’s Kei Okamura spoke with Ms. Anna Dingley, anExternal Director of M&A consulting firm Nihon M&A Center, regarding her role as the company’s first ever female non-Japanese external
director and how she performed her duties from the UK during the
pandemic. She also discusses her experience working with anotherfemale director to promote gender diversity within the boardroom aswell as throughout the entire company. She also shares tips on how
other Japanese companies can identify and attract talented female external directors. Ms. Dingley is the Founder and Managing Director of
consulting firm Japan Connect that advises companies on international business development in Europe and Japan. Ms. Dingley was previously on the Board of the Japan Society, UK and was also an Executive
Director in Equities at JP Morgan Securities in Tokyo. She was also theformer Business Development Director of Tokyo AIM –a joint venture
between the London and Tokyo Stock Exchanges. She currently lives
near London with her husband and young son.

Click here for the full interview
https://30percentclub.org/assets/uploads/UK/final_combined_
Vol3.pdf

Click here for the full interview
https://30percentclub.org/assets/uploads/UK/30__Club_Japan_
IG_-_Neuberger_Berman_interview_with_Ms_Anna_Dingley_
JPN.pdf

Ms. Yuko Kawamoto(Professor, Graduate School of Business and Finance, Waseda University)

If the Board of Directors is diverse, each director
perceives issues and risks differently.

You can read last year’s interviews here.

Diversity and Corporate Governance
Chris Vilburn of Goldman Sachs Asset Management discusses therelationship between board diversity and governance with Ms. Yuko
Kawamoto, a professor at Waseda University's Graduate School ofBusiness and Finance. Ms. Kawamoto started her career at the Bankof Tokyo (currently MUFG Bank, Ltd.), and after working at McKinsey& Company, she now serves as an external director of numerous companies including SoftBank Group. In the interview, Ms. Kawamoto also
speaks on the difference between having only one woman director on
the board and having multiple women directors, and how having diverse directors can have a positive impact on corporate governance.
She also provides some advice to corporates on how to promote diversity at the board level.
Click here for the full interview

Ms. Junko
Okawa(Professor Emeritus,
Hitotsubashi University)(Representative,
External Affairs, Japan
Airlines Co., Ltd)

Diversity on the
Board of Directors

Click here for the full interview

https://30percentclub.org/assets/uploads/UK/final_combined_
Vol4.pdf

17

Ms. Yōko
Ishikura

Female Leader Interview Series

https://30percentclub.org/assets/uploads/UK/final_combined_Vol1.pdf

Female Leader Interview Series

Building a Company
Where Women Can
SucceedClick here for the full interview
https://30percentclub.org/assets/uploads/UK/NEW_final_combined_Vol2.pdf*30% Club Japan website is under renewal as of March 2022.

18

5

Future Plans

Final remarks

The Investor Group Best Practices Subgroup aims to promote activities
that will increase corporate value by improving gender diversity.
Creating a Toolkit for Good Dialogue
We are considering the creation of a toolkit to share our know-how inorder to produce results in the collection of dialogue best practices
and to implement effective dialogue that brings awareness to bothcompanies and investors. The Investors Group of the 30% Club UK has
already published a toolkit for conducting more effective dialogue toachieve an increase in the proportion of female executives.
UK Investor toolkit for engaging boards on diversity
https://30percentclub.wardourdigital.co.uk/initiatives/investor-group

Best Practices Gender Disclosure from Investors’ Perspective
With regard to the disclosure on gender and diversity, various data
and formats are being reviewed and implemented by each company.
We plan to provide information on desirable gender-related disclosure
from the perspective of investors.

This is the second Annual Report of the Investor Group. Thanks to the great efforts ofeach member of the Best Practice Subgroup, we were able to have five best practices
dialogues as we did in the previous year. In addition to these introduced here, manyother dialogues provided good insights. We hope to continue to improve our dialogues
through the creation of toolkits and so on. The Thought Leadership Subgroup held a webinar in addition to the interviews with women leaders. The Investor Group will continue
to engage in activities that benefit stakeholders in the investment chain.
Best Practice and Reporting Subgroup

In this report, we continue to provide examples of best practices in board diversity dialogue, including not only board composition but also pipeline development. We hope
you can see how we are expanding our dialogue beyond board composition to include
pipeline development. Investor Group's activities have expanded to include more interviews with female leaders, webinars, and discussions with female independent directors.
We would like to welcome comments and feedbacks from companies and investors to
get more insights for our future activities.
I would like to once again thank all the members of the Investor Group for their daily
activities and for their great cooperation in this Annual Report.
Kaoru Kobu
Investor Group Vice Chair / Best Practices & Reporting Subgroup
Disclaimer: The English version is a translation of the original in Japanese and is for
information purposes only. In case of a discrepancy, the Japanese original will prevail.

30% Club Japan Investor Group Members(in alphabetical order as of December 2021)• Asset Management One Co., Ltd.
• BNY Mellon Investment Management
Japan Limited.
• Baillie Gifford & Co.
• BlackRock Japan Co., Ltd.
• Capital International k.k.
• Dai-ichi Life Insurance Company, Limited• Daiwa Asset Management Co., Ltd.
• Deutsche Asset Management (Japan) Limited• Federated Hermes• FIL Investments (Japan) Limited• Goldman Sachs Asset Management Co., Ltd.
• Government Pension Investment Fund (GPIF)• INVESCO Asset Management (Japan) Limited• J.P. Morgan Asset Management Japan Co., Ltd.
• Legal & General Investment Management
Japan• MU Investments Co., Ltd.
• Manulife Investment Management (Japan) Ltd.
• Mitsubishi UFJ Trust and Banking
Corporation• Neuberger Berman East Asia Limited• Nikko Asset Management Co., Ltd.
• Nissay Asset Management Corporation• NOMURA Asset Management Co., Ltd.
• Oasis Management Company• Resona Asset Management Co., Ltd.
• State Street Global Advisors (Japan) Co., Ltd.
• Sumitomo Mitsui DS Asset Management
Company, Limited• Sumitomo Mitsui Trust Asset Management
Co., Ltd.
• Wellington Management Japan Pte Ltd

C o n t ac t

30% Club Japan website

https://30percentclub.org/about/chapters/japan

30% Club Japan Twitter account@30percentclubJ1

Investor Group contact information

This Report and Best Practices

minoru.b.matsubara@resona-am.co.jp
hara_kyouko@smtam.jp
kaoru.kobu@invesco.com

Photo courtesy of Invesco (P6, P14)

19

Future Plans

Interviews withfemale outside directors,
thought leadership, etc.

Mayu.k.Nishimura@gs.com