30% Club Japan
Investor GroupANNUAL REPORT 2020/21

Introduction

CONTENTS

1234

About 30% Club Japan 
30% Club overview
30% Club features
Establishment of 30% Club Japan
30% Club Japan’s goals and current achievements
Major activities and the role of the Investor Group

This report describes the activities of the 30% Club Japan Investor
Group during the first year since its establishment. The Investor Group,
which is comprised of institutional investors, is one of 30% Club Japan’s
working groups and has been active since 30% Club Japan’s official
launch on May 1st, 2019. The number of current members has increased
to 24 (as of the end of September 2020), and we have grown into anorganization with significant influence. Members of the Investor Group
believe that the structure of corporate boards and the leadership teamof investee companies is important for sustainable growth of corporate value, and also that leadership teams with diversified views andperspectives can make better decision. We expect that Japanese companies will be able to enhance their potential for sustainable growth ofcorporate value by focusing first on gender diversity. In this report, we
present the Investor Group’s activities over the past year, with particular focus on the “Best practices of engagement activities”. In addition,interviews with female directors are also included. In these interviews,
the relationship between gender diversity and corporate value is discussed from the perspective of female directors.

2

About 30% Club Japan Investor Group 
3Overview
Goals
Strategies and major activities for improving of gender diversity
Constructive dialogue - Engagement
Investor Group Activity Report Collect and share engagement best practices
Create Thought Leadership report and white paper
Raise awarenessAcquire new members

6

INTERVIEW 
Ms. Yoko Ishikura/Ms. Junko Okawa

12

Future Plans 16

We hope that institutional investors will be able to use the best practices described in this report for their day-to-day engagement.

APPENDIX
Current status of diversity in Japanese companies
History of gender equality in Japan
Data on the current state of diversity in Japanese companies

Introduction1

1

About 30% Club Japan
30% Club overview
The 30% Club was founded in 2010 in the United Kingdom and is a
global campaign to increase the proportion of female directors on
corporate boards and other key decision-making bodies in order toachieve sustainable growth of corporate value. Only the top executivesof companies that agree with the purpose of the 30% Club (presidents,
chairmen and board chairmen) can be members. It is now extended to
15 countries, and the number is increasing every year.
The 30% Club takes its name from the principle that 30% is theminimum number of people, or “critical mass”, required to influence
decision making,

1. Percentage of Female Directors(2016–2020)

2

30% Club features
The 30% Club chapters have made a significant contribution to increasing the percentage of female executives in the countries in which they
operate, and the success factor is the “integrated approach”. It aims
to achieve gender equality more effectively and efficiently through an
integrated approach, in which the various sectors with a common objective that are critical to achieving gender equality work together ina mutually reinforced manner. In addition to corporates, the 30% Club
works with financial institutions (especially institutional investors), media, universities, governments, professional services firms (consulting
firms, law firms, etc.) and executive search firms.

20%

21.3%

19.1%
TOPIX100

14.7%

15%

13.0%

12.9%

13.9%
10.5%
10%

7.8%

8.0%

4.8%

5.4%

3.4%

3.7%

4.1%

2016

2017

7.0%
4.4%

5%

0%

2018

9.5%

7.2% TOPIXMid400

5.2%

6.3%

All listed
2019

2020

2. Number of companies without
Female Directors: (2016–2020)
35

30

30

about the direction of our new goal.

Strategy and main activity of improving gender diversity
As the Investor Group, in order to improve gender diversity of Japanesecompanies, it is important to first recognize that gender issues exist,
and then to discuss about solutions through constructive dialogue (engagement). Depending on the situation in the future, we may consider
to disclosing the percentage of female directors promoted internally,female executive officers, or female new graduates/mid-career employees, or setting the target levels of each KPIs.
In addition, the Investor Group will contribute to the improvement ofgender diversity in companies sending message about the importanceof gender diversity publicly, through the publication of the Thought
Leadership Report or white papers, and any awareness opportunities
at presentations or events.
The main activities of the Investor Group are as follows:*For the member list, please refer to the 30% Club Japan web page.

Goals and achievements of 30% Club Japan
Percentage of female directors at the TOPIX top 100
companies to be 30% by 2030*“Directors” refers to board directors and auditors.

Collect and share engagement best practices

Percentage of female directors at TOPIX 100
as of the end of July 2020: 12.9% (2.4% increase over the previous year)

Create Thought Leadership report
and white paper

Companies without female directors, 8 companies

24

25

30% Establishment of Club Japan
In Japan, Ms. Michiko Tadamatsu of Deloitte Tohmatsu Consulting LLC
founded the Japan Chapter, which officially began its activities as 30%
Club Japan on May 1st, 2019. In July of the same year, Mr. Masahiko
Uotani (President and CEO, Shiseido Co., Ltd.) became the first chair.
The number of members increased from 30, as of its launch, to 58 as ofthe end of September 2020.

*Chart 1 Reference26(-7 over the previous year)

Raise awareness

20

15

15
10

8

5
0%

2016

2

2017

2018

2019

2020

Main activities and the position of the Investor GroupThe 30% Club Japan implements its initiatives through the “working
group”. Four working groups are currently active: the TOPIX Presidents’
Association, the Investor Group, the Media Group, and the University
Working Group. The Investor Group is particularly influential and has
been active in many 30% Club countries.
About 30% Club Japan

Investor Group overview
The Investor Group is a working group of institutional investors. The
Investor Group aims to maximize shareholders’ value by enhancing
the medium- to long-term corporate value of its investee companies
through the improvement of gender diversity.
Institutional investors who participate in the Investor Group promotestewardship activities based on the belief that improving diversity willcontribute to sustainable growth of corporate value.
Members agree to the Statement of Intent and shall be expected
to take any action, in its sole discretion, in accordance with its own
policies and procedures, including those relating to confidentiality obligations and antitrust laws.
Goal of the Investor GroupAs well as 30% Club Japan, the Investor Group started with the goalof increasing the percentage of female directors at the TOPIX top 100
companies to 10% by 2020 and 30% by 2030. *We are currently discussing

25%

30%Club Japan

30% Club Japan
Investor GroupAcquire new members

30% Club Japan Investor Group3

Investor Group Principles – constructive dialogue and engagement
Role of Institutional Investors
In the investment chain, investee companies and institutional investors share common goals: achieving sustainable growth of corporate
value and long-term investment performance, which are based on awin-win relationship. Based on such relationship and mutual trust,
we believe that one of the important roles of institutional investors is
to engage in constructive dialogue and to discuss various measuresin order to realize sustainable growth of corporate value through the
improvement of gender diversity.
Principles of Engagement
The principles, which describe the Investor Group’s basic concept ofengagement are as follows. Click here for full text
The Investor Group aims for 30% female representation on boardsof directors and in executive management as critical mass to influence decision making and expand sustainable corporate value.
However, Japan is experiencing a severe shortage of talented human resources with business-level experience, and we recognizethat the state of each company and industry is different. Therefore,
it is important that companies first recognize the advantages of diversity, and that senior management in each organization consider
the appropriate level of diversity pragmatically for their company.
To investee companies that do not demonstrate diversity, each institutional investor may deepen the discussion with investee companies through its individual engagement opportunities based onsuch investor’s policy or framework.
Members of the Investor Group will share engagement issues anddiscuss about solutions with investee companies through engagement activities, and explain the importance of gender diversity.
The Investor Group will endeavor to make each company’s engagement more advanced by sharing and discussing ideas, engagement results and know-how regarding the appropriate levelof diversity, to the extent allowed by law.
Public institutions are to engage the activities within the restrictions on laws and regulations.

4

30% Club Japan Investor Group3

Engagement Case Study

Activity of the Investor Group
1) Collect and share engagement best practices
The Investor Group aims to fill the gap between the current situationand the goal through constructive dialogue with investee companies.
By introducing best practices of engagements with companies, wehope that both institutional investors and companies can realize better dialogue and sustainable growth of corporate values. We also set
multiple milestones for sharing engagement examples and manage
the progress of each engagement case. Through these activities, eachmember company aims to accumulate know-how in diversity-related
engagement, and contribute to solving diversity issues at various stages, as well as achieving sustainable growth of corporate value.
We also invited Professor Tetsuo Kitagawa (Emeritus Professor of
Aoyama Gakuin University; Research Professor at Graduate School ofManagement, Tokyo Metropolitan University), to set up a study session.
Also, we met female independent directors of the Japanese Institute ofCertified Public Accountants, in order to exchange views and to deepen understanding of the importance of board diversity.
The Investor Group has gathered dozens of diversity related engagement examples. These were all very instructive, and we would liketo introduce five of them on this report. We chose those five cases
which achieved improvement in diversity through engagement overa certain period and gave us new perspectives worth sharing broadly
among institutional investors.
Five engagement examples selected as best practices include thefollowing characteristics:

Discussed gender diversity on consecutive
engagement opportunities
Encouraged pipeline development to expand
female managers at companies
Confirmed company-wide positive impact
through diversity improvement
Strong commitment to diversity improvement
by top management

Steel Company A

Service Company B

Awareness of issues by asset management companies

Awareness of issues by asset management companies

Company A is a group holding company in the steel industry that isincluded in TOPIX Mid 400. Company A has been actively engaged
in dialogue with investors and disclosure of non-financial information. The top management has committed to promoting gender
diversity including support for women’s career development and to
making firm-wide efforts. In particular, in the steel industry, where
the ratio of female employees is lower than that of other industries
and the business environment is rapidly changing, Company A has
positioned the promotion of diversity to maximize the potential of
its employees as an important management issue, and it has listed
diverse hiring as a key measure in its mid-term management plan.
As a result, Company A achieved the goal of promoting women to
managerial positions one year ahead of schedule.
On the other hand, at the general meeting of shareholders held
previous year (June 2019), a female audit & supervisory board member was appointed for the first time in the company’s history, but
the board did not include any female directors. Therefore, from theperspective of enhancing corporate value, constructive dialogue
was held with the aim of realizing a more diverse board of directors
and management team.

Company B is a large service company included in TOPIX Core 30.
It has created a corporate culture in which employees are hired
based on their abilities regardless of gender and is highly focusedon human resource development and employing various working
styles. Despite its female president in the past, the Company has
not recently appointed any women to the Board of Directors. An
asset management company engaged with the Company B and advised that it would be useful to promote board diversity to further
increase in its corporate value, to increase the ratio of female managers, who become candidates for female directors and to enhance
information disclosure, including publication of information such as
positioning of gender diversity in ESG.

Content of dialogue and comments from the company
A dialogue with the Senior Vice President of Company A was conducted on the diversity of the board and its support for women’s
careers at a regular ESG engagement meeting.
At last year’s general meeting of shareholders, a woman witha wealth of experience and knowledge in finance and accounting
who had served as an executive officer of a group operating company was appointed as an audit and supervisory board member ofCompany A, which improved the diversity of the board. Although
no women directors were included in its board at the time of the
dialogue, Company A explained that it would positively consider theappointment of a woman director, as it is increasingly encouraged
to do so by investors from the perspective of improving diversity inmanagement in addition to the appointment and remuneration ofboard members.
A dialogue was also held on the progress of Company A’s efforts
to support women’s careers. Company A has achieved an early increase in the number of women in managerial positions by actively hiring female employees, including at manufacturing sites, andenhancing childcare and nursing support systems that far exceed
statutory requirements, such as the opening of nursery schools in
the office; and the implementing training and educational activities through the establishment of the Diversity Promotion Section
at each group operating company. Company A also said that the
improvement of heavy physical work from the viewpoint of womenis also beneficial for senior male employees. The asset managementcompany advised that the company should be highly evaluated for
its initiatives on various measures to promote women’s career advancement that will serve as a model for other companies and that
it would continue its efforts in the future.

Results and the Future

Content of dialogue and comments from the company
A dialogue was held with the CFO, executive officers, and IR ofCompany B on company-wide gender diversity initiatives as wellas those at the Board of Directors. We (the interviewing investment
management company) explained our aforementioned perception
and confirmed the top management’s policies and initiatives forboard diversity. Company B responded that it had committed topromoting a woman to the board of directors because it recognized the importance of deliberately promoting women as a part ofstrengthening board diversity, that it understood the need to raise
the ratio of women in managerial positions in order to further develop diversity, and that it would aim to further promote and develop
the pathway of female employees’ careers.

Results and the Future
Company B elected one female director at its general meeting ofshareholders in June 2020. In Japan, a delay in the development offemale candidates for directors internally has become a problem,and outside directors are the mainstream for the appointment offemale, but Company B has promoted female executive officers tointernal directors. At the same time, the ratio of outside directors
was also raised, significantly improving board diversity. Company
B’s approach to this issue is highly commendable.
On the other hand, in order to realize the further gender diversitythat 30% Club Japan aims to achieve, it is necessary to continuously
increase the number of female managers who are eligible for director candidates. The percentage of women in managerial positions at
Company B stands relatively high at 40% for the Group as a wholeand 25% in Japan, which is the driving force behind the promotionof women internally. Nevertheless, there is still a 10 point difference
between percentage of female employees and that of managerial
positions in Japan ((1) Group: 49.5% of employees, 40.2% of managers; (2) Domestic main: 46.3% of employees, 25.2% of managers).
The company aims to equalize the ratio of male to female among
employees with that of managerial positions. If its efforts to ensure
the continuity and feasibility of initiatives, such as setting targets
for the ratio of female in managerial positions and enhancing disclosure of numerical values and policies, are ensured as the next step,
we believe that diversity will become even more useful as a means ofraising corporate value, and we intend to continue dialogue with them.

The first female outside director was elected at Company A’s shareholders meeting held in June 2020. The newly appointed female
outside director has experience as an outside audit and supervisoryboard member or outside director at other companies, and possesses a high level of expertise, abundant experience, and deep insightin a wide range of fields in employment and labor, including promotion of women’s career advancement and talent management. Asa member of the nomination committee, she is expected to further
enhance the diversity of its board and promote the career advancement of women at Company A.

6

Activity of the Investor GroupEngagement Case Study

7

Food Company C

Electric Appliances Company D

Awareness of issues by asset management companies

Awareness of issues by asset management companies

Company C is a leading global food company included in the TOPIX
Large 70 index. Since the early 2000s, the Company has been active
in its efforts to prevent women employees from leaving the workforce, and has actively promoted diversity. While the results of such
efforts are clear in the Company’s reporting including the corporatewebsite, the company had an all-male board at the time of dialogue.
A company’s long-term growth is largely dependent on the decisions made by members of the board and senior management.
Investors also believe that diverse perspectives and opinions are
essential for good decision making as a group, and therefore our dialogue aimed to push the company to appoint women to the board.

Company D is a leading Japanese electronics manufacturer, whichis included in TOPIX Core 30. In the past, there has not been sufficient dialogue with investors, but current management is activein dialogue with investors as well as in disclosure of non-financial
information. However, the efforts are still in progress regarding diversity, and no women are included in the board of directors or audit
committees. The asset management company initiated dialogue,
believing that discussions about a diverse board of directors would
be helpful for further expansion of Company D’s corporate value.

Content of dialogue and comments from the company

The dialogue was held with the president of Company D about thediversity of the board of directors. Although the company has not
set specific targets, it is aware of the importance of the diversity inthe board of directors, and it has not been possible to find an appropriate candidate until now. Company D has been trying to continue
their efforts, and we have received a response from the president
that Company D intends to make a proposal to the shareholders
meeting as soon as the candidates are found.
We also discussed the advancement of female employees.
Company D is in a situation where there is much room for improvement regarding the advancement of female employees, partly due
to the difficulty caused by the electronics industry. According to
the president, Company D is aware of the issues, has set targets
for the ratio of the number of female employees and the numberof female managers, and is working to create an environment inwhich women can work comfortably. In addition to these efforts,
the asset management company requested that Company D pushfemale employees’ advancement through the introduction of careerdevelopment programs for women, and expanding information disclosure such as KPIs.

In addition to noting that Company C’s group company has appointed a woman director, the Company gave us a detailed explanation ofissues and countermeasures already in place. The Company has set
long-term goals to increase the number of women managers and is
working to create an organizational culture that promotes women’sdevelopment and performance. The Company also recently highlighted and further communicated both internally and externally theimportance of “diversity” for its business.
We welcome the Company’s efforts that focus on both career development (bottom up approach) and organizational culture reform(top down approach). Increasing the number of women managers
will increase the pool of talented and diverse director candidates.
Although it is not easy to measure organizational culture, we believethat a culture of diversity and inclusion is key to building a strong
and innovative organization and being sensitive to the needs ofboth internal and external stakeholders.

Results and the Future
At the shareholders meeting in March 2020, two women candidates
were elected to the board. Whilst the “one and done” approach toappointing women directors is not a problem unique to Japanesecompanies, Company C is a good example of a company that avoided
such tokenism by appointing two women to its board from the outset.
30% Club Japan’s expectation of 30% women representation isbased on the understanding that a sub-group’s degree of influenceincreases when the size of the sub-group reaches the critical mass
threshold of 30%. Although the Company’s appointment of two
women is not sufficient in this regard, this is an important step towards a more diverse board given there is a significant difference ininfluence between one and two. We look forward to continuing the
dialogue, with the expectation that further progress will be made,including the ongoing development of women leaders within thecompany who will become future board candidates.

Content of dialogue and comments from the company

Results and the Future
At the general shareholders’ meeting held in June 2020, one female
director and one female corporate auditor were appointed. Also, thediversity of the board of directors has greatly improved, with one
foreign director appointed internally. We commend the company
for its efforts.
However, out of the total 12 board members, only one is female,which is less than the target of 30% Club Japan. We believe that
there is room for improvement to promote company-wide diversityand disclose non-financial information, and as an asset managementcompany we would like to continue our talks to further expand corporate value while also supporting other improvements.

Information andCommunications Company E
Awareness of issues by asset management companies
Company E is one of Japan’s leading system integrators to be
adopted in TOPIX Mid 400. Company E, which is developing its
business globally with a vision of becoming a partner trusted bycustomers over the long term. The company strongly recognizes theimportance of respecting diversity. From around 2006, top management began initiatives to recognize the importance of diversity,
the need for ways of working and the utilization of diverse humanresources, including work-life balance. This is because Company E
believes that it is important to cultivate, stimulate, and further growcreativity that can be accepted globally by respecting diversity inorder to combine all kinds of IT-related services and provide thebest services for customers on a global basis. In addition, Company
E recognizes that the ratio of female managers in Japan is lower
than that of overseas offices. Amid these circumstances, the company has always been aware of the need to make greater use of
women and has created various systems to support women as acompany. In addition to the importance of further communicating aclear message to the outside world in the future, the managementof the company held a dialogue based on the belief that it would
be useful to have discussions by a diverse board of directors froma top-down perspective and to play a role centered on directors,

effective in business operations and system development. It has
been made possible by the support of various people. In otherwords, the gathering of people who understand the importance of
teamwork leads to recognition, promotion, enlightenment, and empathy for diversity. However, we believe that we are in the process ofimproving our disclosure of non-financial information, including thehistory that we have developed over a long period of time, and wewould like to continue dialogue with investee companies.

Content of dialogue and comments from the company
A dialogue was held with the Vice President of Company E on board
diversity. Although no specific targets have been set, the importance of board diversity has been recognized. In 2012, a female auditor (lawyer) was appointed for the first time. Opinions that differedfrom previous viewpoints were very meaningful, and this led to anincrease in the number of female directors. Currently, Company E isa “Company with Supervisory Committee”, with two female officers
and one foreign national. Emphasizing the participation of womenin executive officers, the number of female officers has increased
annually to three.
We also discussed the activities of female employees. Company
E is always aware of and promotes company-wide initiatives. The
company is working on various KPIs from the perspective that it isessential to increase the number of female managers to increase
the number of female executives, and to support the career planning, management and training of female employees to increase thenumber of female managers. As an asset management company, we
have mentioned that it would be appreciated if such efforts and thedisclosure of KPIs, etc., could be expanded.

Results and the Future
Company E recognizes that the IT industry has a low gender bias
and can play an active role if it enhances its technical capabilities
and expertise. Customers are less resistant to female engineers andare often treated fairly if their technical skills are high. Therefore,
as a company, management considers and provides a system thatenables women to develop their technical skills even during life
events, so they can return to the company and develop their careers. Behind the establishment of such a cycle is the fact that the
Human Resources Division is made up of a large number of people
with experience in the field.
Therefore, opinions from the field are reflected in HR policies.
Since this system has historically been based on a system in which
employees are recruited from the workplace, it is clear that initiatives such as diversity have been spreading smoothly. Many people
say that the reason why women have returned to E company andbecome more active is because of teamwork. Teamwork is one ofthe values of Company E, and it is necessary for team work to be

8

Activity of the Investor GroupEngagement Case Study

92) Create Thought Leadership report and white paper
The Investor Group publishes Thought Leadership Reports and White
Papers to communicate the importance of gender diversity at important decision-making bodies such as the Board of Directors. We alsoplan to develop a series of interviews with female board directors thatwere published in this report.
3) Raise awarenessThrough the opportunities raising awareness noted below, the Investor
Group has tried to communicate the importance of gender diversity.
We would like to increase such opportunities to broaden awareness ofgender diversity.
The following activities have been carried out in the past.
May 2019
Briefing session for media
November 2019 Participation in Global Compact Network Japan
March 2020
Interviews with the Investor Group membersby the Nikkei ESG
4) Acquire new members
As of the end of September 2020, the number of members of theInvestor Group, which was only four companies at the time of its establishment, has been increased to 24 asset managers and asset owners.
See page 17 for members of the investor group.

10

Activity of the Investor GroupIN T E R V I E W
As part of Thought Leadership sub-group activity of the 30% Club,
Goldman Sachs Asset Management (GSAM) interviewed two female leaders
about promoting diversity on the board of directors and within the entire company.

Diversity on the Boards of Directors
Yoko Ishikura
GSAM Ishikura-san, you started your career asa freelance interpreter and are now a Professor
Emeritus at Hitotsubashi University. You havealso served as an outside director at several
companies. Could you speak about your career
path so far?
Ishikura I still introduce myself as a “free agent”(laughs). This is why I do not have any title on
my business card. I have repeatedly said that
we are now in the age of individuals, and there
is little meaning in titles such as “so-and-so at
such-and-such company.” Probably because
I have changed jobs so many times, I do nothave a sense of belonging. The turning point in
my career was visiting the U.S. when I was acollege student. That experience expanded myworld, and since then I have worked as a freelancer. Later, I went to business school and felt
like getting involved in business. Around thattime, companies had just started to hire outside
directors, so the timing may have been key.
GSAM When you first became an external director, female directors were far more uncommon than today. What difficulties and issues did
you face?
Ishikura I first served as an outside director at
Avon Products, and then at the former Japan
Post Corporation, Mitsui O.S.K. Lines, Fujitsu,
and others. At that time, there was a trend toinclude female directors, and I did not feel uncomfortable about being the only woman on
the board. Maybe I am not so concerned about
whether directors are men or women. The reason why women’s participation is needed in
the workplace is because companies must innovate, and innovation requires diverse ideas.
In other words, one of the factors to generate many different ideas is gender. However,Japanese companies characteristically devote12

themselves to the “How to” details, and consider hiring women to be the purpose in andof itself. When they look back and think about
why women are needed in the workplace, theyoften cannot identify an answer. Women themselves also must not merely rehash what men
have done; we need to think differently.
GSAM Could you tell us how you share yourideas and goals with directors at a board meeting in order to lead a company in the desired direction? Also, could you share with our readers
any tips and the philosophy that you value as aleader? Moreover, why do you believe diversity
on Boards of Directors is important?
Ishikura I value my uniqueness. For example, I
make it known to the executives if their direction
differs from global trends. Since the company’s
internal matters are well understood by thoseinside, I give them input from a different perspective. In recent years, both men and women are required to have unique experience,
assets, knowledge, and skills (on the Board of
Directors). I think the oversight function is effective due to that diversity.
GSAM Regarding the need for diversity andunique opinions on the Board of Directors, whatcaused the genesis of that idea and what was
the turning point?
Ishikura I would guess the most powerful factor must have been the investors. In some companies, investors requested independent directors, which led to changes in the compositionof the board. There were also voluntary efforts
by companies. The Abenomics reforms werebacked with the intention to increase foreign
investment, and some companies realized thatthey needed to improve and started making
changes. I think Kathy Matsui of Goldman Sachs
Securities also made a lot of effort in this area.

INTERVIEW

GSAM Do you have any advice for companies
that are having difficulties in finding excellent
female directors?
Ishikura When choosing a successor in a company, regardless of the position, female candidates should always be included. Many years
ago when companies began effort to makethe board diverse, I recall Kitashiro-san of IBM
Japan always required that candidate list includes women. We need to have a mindset ofalways including, always searching for the best
women candidates.
GSAM What kind of system or structure is desirable for companies to promote the exchangeof diverse opinions regardless of race or gender?
Ishikura A human resources system where hiring and evaluation is based upon the type of job
and output is especially important. In addition,
the entire company must be determined to taketime to hold discussions in a free and open-minded manner. This consequently requires the top
management to listen to others’ opinions. It is
the same as digital transformation, and it is difficult to do well from the start, so trial and error
is important. Meanwhile, it is also important for
employees to acquire skills and expertise sothat they can do well anywhere as individuals.

Diversity on the Boards of Directors

The reason why women’s
participation is needed in
the workplace is because
companies must innovate,
and innovation requires
diverse ideas.

Yoko Ishikura

Professor Emeritus, Hitotsubashi University
Professor Ishikura received a Master of Business Administration fromthe University of Virginia, Darden School of Business and a Doctor of
Business Administration from Harvard Business School. She has served
as a manager at McKinsey & Company Inc.; professor at the Schoolof International Politics, Economics, and Business at Aoyama Gakuin
University; professor at the Graduate School of International Corporate
Strategy, Hitotsubashi University; and professor at the Graduate Schoolof Media Design, Keio University. She currently serves as an outside director of Shiseido Company Limited, Sekisui Chemical, and TSI Holdings.
She also serves as a strategic advisor to Avatarin and a trustee of the
Nagamori Culture Foundation. Professor Ishikura is a member of theWorld Economic Forum’s Expert Network.

13

INTERVI E W

We must think of aframework for nurturing
female managers who areseen as candidates for
department managers,
officers, andtop management.
Awareness will be built
in the process.

Building a Company
Where Women Can Succeed
Junko Okawa
GSAM Okawa-san, you started your career asa cabin attendant and then became the first female representative director of Japan Airlines(JAL). Which of your skills and experience doyou think were evaluated by the company?
Also, what motivated you to rise to your current
position?
Okawa I became a director of the company
immediately after we experienced bankruptcy.
At that time, the mission of management was
to determine what needed to be reviewed andwhat reforms to pursue. I think a key factor inaccomplishing this mission was frontline experience. People working on the frontline can offer
clues or tips for solving problems and come up
with new ideas that can only be gained throughfirsthand experience. Putting their feedback to
use was vital for rebuilding JAL. Moreover, until then, the position of General Manager of the
Cabin Attendants Division was assigned to male
employees without any experience as a cabin
attendant. The role expected of me was to conceive new concepts and ideas that could not bederived through conventional logic-based discussions and to ensure that JAL moved forward.
I assumed the position with a strong sense of
responsibility and commitment to this mission.
GSAM When you were faced with challenges inyour career, how did you overcome them? Did
the company support you in achieving worklife balance?
Okawa To balance work and family life, I built
a supportive network of friends and family. As acabin attendant, I worked irregular hours which
involved staying overnight. Until my child turned
one, I used the company’s system of working
shorter flight hours and chose flight patterns
without an overnight stay. In the meantime, I
prepared myself in my work and personal life
to return to international flight duty. Although
it was not a normal child-rearing environment,
I was encouraged by my child’s nursery school

14

principal, who said that each person can havehis or her own style of childcare.
GSAM Could you tell us about JAL’s programs
to support female employees in developing
their careers and acquiring skills?
Okawa The JAL D&I Lab (formerly known as
JAL Nadeshiko Lab) is JAL Group’s program
to address diversity and inclusion across organizations through a bottom-up approach.
In this program, one to two employees fromeach Group company voluntarily join the Lab
to conduct research in groups on themes related to diversity for about nine months. In
addition to research, they share their findings
and suggestions with the entire JAL Group anddeliver presentations at an annual convention
to approximately 200 employees. The convention is attended by the directors including thePresident and Chairperson of the company.
GSAM How can women make their voices
heard in the workplace? What do you think female employees should do to demonstrate theirabilities more effectively? What part can you
play in achieving this?
Okawa In this age of ambiguity and uncertainty, a sense of security through homogeneity ismerely staying the same, which in fact means
going backwards. A strong message from top
management will drive diversity forward. I would
like for us to understand different personality
types and help every employee grow. During aflight, for example, ten cabin attendants eachserve the passengers differently and their synergy effects determine whether overall cabin
service is good or not. I would like to give themconfidence that their individual diversity plays asignificant part in our service.
GSAM In Japan, where the ratio of female directors is low, what do you think is needed interms of awareness and environment for women
to more easily become a director?
Okawa Nowadays, more women are managers

INTERVIEW

than ever before. Still, the number of women indepartment manager positions, one rank before
promotion to an officer, is extremely low. This
imbalance is reality. Therefore, we must think ofa framework for nurturing female managers whoare seen as candidates for department managers, officers, and top management. Awarenesswill be built in the process. I also feel that weneed to rethink excessive consideration given
to women workers by men, with the exceptionof special individual cases. Considerations suchas “I don’t think you can handle this” or “I don’t
want to trouble you with this” can stop women from getting ahead. Even if men do not say
anything, women can sense their intentions andlose confidence, which in turn impedes diversity. I hope that both men and women speak
frankly and openly.
GSAM How is board diversity changing in JAL
management? What positive effects do you
think diversity has had on board meetings?
Okawa The situation is not ideal yet, but theboard members speak more freely than before.
As a female director with only frontline experience, my ideas and opinions may have been

Building a Company Where Women Can Succeed

considered unusual at first. But JAL was in aserious situation immediately after bankruptcy
and management was forced to make difficult
decisions. There were times I had to fight alone
based on my firsthand experience. The directors eventually realized that the success of ourmeasures lay in sensitivity or intuition to see situations as they are, and not in logical reasoning.
This led to promoting diversity in the board.
GSAM Do you have any advice for other companies on how to develop female talent and increase
the ratio of female managers and directors?
Okawa A bottom-up approach such as the
JAL D&I Lab alone is not sufficient to get positive results. Top management must declareand demonstrate their commitment to diversity. It should not be left to directors who are
enthusiastic about it, but instead understoodby all directors that diversity is an integral partof management strategy. I feel that repeatedmessages on diversity by top management arenecessary in internal communications.
Junko Okawa

Special Director, Japan Airlines Co., Ltd.
Junko Okawa joined Japan Airlines Co., Ltd. in 1977. After serving as apurser in the International Cabin Attendant Department, instructor in
the Cabin Attendant Training Department, and other positions, she became head of the In-Flight Service Department in 2006. She assumed
the post of head of the Cabin Service Planning Department in 2007 andintroduced quantitative evaluation of services. In 2010, she became the
Executive Officer and General Manager of the Cabin Attendant Division,
the first woman and the first employee who was previously in a cabin
attendant position to do so. After becoming Director, Senior Managing
Executive Officer, and General Manager of the Cabin Attendant Divisionin 2013; Director and Senior Managing Executive Officer in charge of
the Corporate Brand Promotion Department in 2014; Representative
Director, Senior Managing Executive Officer, and General Manager of theCommunications Division in 2016; and Vice Chairman in 2018; Okawa hasserved in her current position since April 2019.

15

4
AP PENDIX

Future Plans
Message from 30% Club Japan Investor Group Best Practices Subgroup

The Investor Group will continue to gather and share best practices.
Based on the best practices shared among member companies, wewill hone our skills and establish discussion points of gender diversity,
aiming to realize further efficient engagement. In addition, we would
like to contribute to the improvement of gender diversity of Japanesecompanies by sharing those engagement best practices widely. We
hope that the improvement of gender diversity will lead to sustainablegrowth of corporate value for Japanese companies in the future.

Data on the current status of diversity
at Japanese companies

The improvement of the status of women is being realized throughvarious efforts. The history of major laws and regulations on gender equality are as follows.

In Japanese companies, the proportion of women in leadership
positions is gradually improving but is still at a low level, which isconsidered as a very serious issue.
In 2003 the government set a target of achieving women in
leadership positions in all sectors of society to be at least 30%
by 2020, but the current status falls largely short of the goal
and the target was postponed. The fifth Basic Policy Plan for
Gender Equality Promotion in July 2020 stated that during the2020s, efforts will be made to achieve 30% as early as possible.
Furthermore, taking 30% as a milestone, the percentage of women in leadership positions will exceed 30%, and by the 2030s, thegoal is to create a society in which everyone can work regardlessof gender, and in which there is no gender bias among those inleadership positions, according to the Cabinet Office.
According to the Global Gender Gap Report by the World
Economic Forum, Japan was ranked 121st out of 153 countries in
2020. Although Japan is among developed countries, its ranking
in the economic field is low at 115th in the report. This is due to thefact that women are lagging behind in senior leadership positionsin the companies and that the average wage of women is lower
than that of men.

Gender equality specified in the Japanese Constitution
International Women’s Year, Establishment of
Headquarters for the Planning and Promotion of
Policies Relating to Women(Later Headquarters for the Promotion of Gender Equality)

1985

Adopted Convention on the Elimination of
All Forms of Discrimination against Women
Enforcement of the Equal Employment Opportunity Law
Enforcement of the Act on Child Care Leave
Establishment of Council for Gender Equality
Enforcement of Basic Act for Gender Equality
Enforcement of the Act on Advancement Measures to
Support Raising the Promotion of Support for
the Development of the Next-Generation Children
Enforcement of the revised Equal Employment
Opportunity Law
Enforcement of the Act on Promotion of Women’sParticipation and Advancement at Work
Revised Corporate Governance Code - specified
that companies should promote diversity of
personnel, including the active participation of women

1986
1992
1994
1999
2003-05

2007
2015
2018

Proportion of women in
leadership positions
0

Japan

10

20

30

34.5

Sweden38.6

Norway35.6

UK
Australia
Singapore
12.5

37.9

Philippines
20.3
employees

16

Department manager level inprivate companies

38.4

Director level inprivate companies

15

51.5

Leadership positions

11.2

Gender Gap Index 2020 Japan ranks
121st out of 153 countries

Economy

10

6.6
5

4.6
2.0 1.30Disclaimer: 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.

Investor Group members as of November 2020
• Asset Management One• Invesco Asset Management• Wellington Management Japan• MU Investment Advisory• Oasis Management Company• Goldman Sachs Asset Management• J.P. Morgan Asset Management• State Street Global Advisors• Dai-ichi Life Insurance• Daiwa Asset Management• Deutsche Asset Management• Nikko Asset Management• Nissay Asset Management• Neuberger Berman• The Bank of New York Mellon• Government Pension Investment Fund (GPIF)• Nomura Asset Management• Hermes Investment Management• Fidelity Investment Trust• BlackRock Japan• Sumitomo Mitsui DS Asset Management• Sumitomo Mitsui Trust Asset Management• Mitsubishi UFJ Trust and Banking Corporation• Resona Asset Management• Legal and General Investment Management JapanC o n t ac t

Sector chief level inprivate companies

47.1

This report was published thanks to the support from all the members of the Investor
Group Best Practices Sub-Group, and companies involved in the engagement process.
Also, I would like to express my gratitude to Ms. Ishikura, Ms. Okawa, and many others
who contributed to this report.

18.3

Education

Germany

（%）
20

48.3
47.6

46.9
40.7
47.0
36.3
46.6
29.4
46.7
38.7
45.3
34.5
42.5

US

Malaysia

（%）
60

50

44.2

14.9

FranceKorea

40

Historical ratio of
female managers

Politics

1946
1975

Acknowledgements

In addition, I would like to express my deep gratitude to Kaoru Kobu of Invesco AssetManagement and Kyoko Hara of Sumitomo Mitsui Trust Asset Management for leading
all the projects around this report. I would like to express my sincere gratitude to all of
you for your cooperation in publishing this report. We experienced several trial and error
process; however, I hope this report will help you in your future activities.
Minoru Matsubara, Leader of Best Practices Subgroup, Resona Asset Management

Current status of diversity in Japanese companies

History of gender equality in Japan

This is the first Annual Report issued by the Investor Group. Each member of the Investor
Group made a significant contribution to the collection of best practices, which is themain content of this report. In order to further improve engagement activities, we will
strive to create Annual Reports that are useful to a variety of stakeholders, including
listed companies and institutional investors.

1989 1993 1998 2003 2008 2013 2018

Source: Gender Equality Bureau,
Cabinet Office

HealthJapan scoreaverage score2006 score2020 score

Global Gender Gap Index

80 0.645

121 0.652

Economic participationand opportunity

83 0.545

115 0.598

Educational attainment

60 0.986

91 0.983

Health and survival

1 0.980

40 0.979

Political empowerment

83 0.067

144 0.049

Source: World Economic Forum

Future Plans/APPENDIX

30% Club Japan Website

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

30% Club Japan Twitter Account@30percentclubJ1

Investor Group contact information

Report and Best Practices

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

Other Investor Group related
Mayu.k.Nishimura@gs.com