Not Just the Right Thing, But the “Bright” Thing!

The 30% Club believes that genderbalance on boards and in senior
management not only encourages
better leadership and governance,
but diversity further contributes tobetter all-round board performance,
and ultimately increased corporate
performance for both companies
and their shareholders.

AboutWhat is 30% Club?
30% Club is a global campaign that started in UK in 2010 to improve
the gender balance at board and senior management level ofcorporations as it increases all-around corporate performance andpromote sustainable growth for the future. 30% Club has launchedin the following countries: United Kingdom, United Status, Australia,
Canada, Ireland, Italy, Turkey, GCC, Hong Kong, Malaysia, Japan,
South/East Africa, and Brazil.

30% Club has contributed to the dramatic increaseof FTSE-100 female directors.

30.6%
12.0%

12.6%

FTSE-100 female directors:(2018)(2010)

5.9%

Yearly average growth rate:(1999-2009)

35.0(2010-2018)

30.6

FTSE-100%of women directors

30.0

25.0

30% Club Started

20.0

15.0

10.0

12.6
6.9

5.0
1999

2000

2001

2002

2003

2004

2005

2006

200720082009201020112012

2013

2014

2015

2016

201720183

Imp o rt an c e

Why more womenin senior leadership?
Various studies show that diversity at the top of corporations
contributes to sustainable growthand improve long-term company value.

1

Better risk management/
Corporate governance:
Reduce the risk of “groupthink”
Less corporate fraud

2

Better utilization of the talent pool/
Innovative team:
Inclusion advances and more females at all layers of organization
Higher satisfaction by employees and lower turnover rate
Team with diversity exhibits better problem-solving an increased creativity

3

Better financial performance:Better ROE and other financial KPIs
“Insurance effect” in financial crises (stock price drops less andrecovers quicker)

44Enhancement ofcorporate reputation:

Ben e f i t s

Membership Benefits
1

By publically and internally announcing you are a member of
30% Club, you can show your commitment and leadership for
SDGs, ESGs, CSR. You can strengthen your company’s brandand appeal to labor market, shareholders, and your employees.

2

We will have various events throughout the year and you areentitled to participate in those events as a guest. You could
also participate as a speaker when appropriate and share yourcompany’s commitment.

3You will be entitled to leverage the initiatives that 30% ClubJapan offers. You could speed up the process of building
female pipeline at all level of your organization.

4You can expand your network with other companies’ CEOs/
chairs, not just domestically but also globally.

5

You can mention 30% Club membership in company disclosure
reports such as annual report.

Examples:
30% Club member companies disclose theirinvolvement with 30% club in their disclosure
reports in order to show their commitment forstrong corporate governance, sustainability,CSR, and etc..
1_AVIVA Annual Report 2017
2_Legal & General Annual Report 2017
3_Estée Lauder INC. Annual Report 20171235

“A good hockey player
plays where the puck is.
A great hockey player
plays where the puck isgoing to be.”—by Wayne Douglas Gretzky

It is leader’s responsibility to judge anddetermine the direction the company
needs to go and quickly make actions.
Diversity is not just a compliance matter,but an important part of business strategy
for sastainable growth.

Wayne Douglas Gretzky
Nicknamed “The Great One”, he has beencalled “the greatest hockey player ever”.
The above quote is widely used by many
prominent leaders, including Steve Jobs.

A p p ro ac hApproach of 30% Club:

Three Change Drivers

Commitment by
Top ofCorporations“IntegratedApproach”

30% ClubUnique Initiatives

Change in External Environment

Increase ofactivists

Global trends
towardsustainability

Political climate
forgender parity

Accelerate Changes
7

A pp ro ach

Commitment by
Top of Corporations
Membership is available only to CEOs and chairs who have authorityand resources to drive change within the organizations.
Set explicit targets at board and/or senior management level with a defined timeline.
(Optional) Set aspirational target to be 30% by 2030

Use your influence to bring about change within your organization.
Lend your name to the 30% Club campaign in your corporate capacity and signal toboth the public and to your organization that you support gender diversity as a business imperative.
Actively promote the 30% Club and its aims to other CEOs, Chairs and key influencers.

Integrated Approach
30% Club is a “platform” for various influential organizations/institutions to work together and resolve issues much more
efficiently and comprehensively.

Institutional
investors

Government

Media

Listed Companies’
Chairs/CEO

Executive search firms

8Professional firms

Universities

A p p ro ac h

Proven-to-Work
Unique Initiatives
30% Club offers two types of initiatives that tackle the issues ofdiversity within a organization.

Boardroom Initiatives

Pipeline Initiatives

Initiatives to directly improve female
representation on the board and seniorleadership.

Initiatives to broaden the female pipelineat all level of organizations.

Investor GroupChairs/CEO Activation
Lobbying to the government
Executive Search Firms, etc

Investor GroupThe 30% Club Investor Group co-ordinate
the investment community’s approach todiversity, in particular to explain theinvestment case for more diverse boards
and senior management teams.
Government Pension Investment Fund(GPIF) is one of the members of UK
Investor Group.

Cross-Company Mentoring
The Future Board
Best Practice Group
Business School Scholarship, etc

Cross Company
Mentoring Scheme
This is part of a series of 30% Club initiatives aimed at helping to develop abroader pipeline of women and ‘balancethe pyramid’ at all levels. Each participating organization defines the pivot point at
which it sees a divergence between
career paths of men and women, andinvites key women in this ‘danger zone’
into the mentoring scheme.

9Bu s i n e s s C as e

Diversity in senior leadership and financial performance

C as e 1

Likelihood of financial performance above national industry median by diversity quartile.

+21%

Profitability
55
45+27%

Value Creation

Exective team
N=991

23

18
4th

1st4th

1stSource: Delivering through Diversity, McKinsey & Company, January 2018

C as e 2 Diversity in senior leadership and long-term stock priceperformance
Companies with more women at the top achieve better stock price performance thanthose with less women at the top. Studies show that companies with more women inmanagement team perform better than those with more women on the board. Further
study shows, however, that presence of women on the board is positively correlatedwith the number of women in management team: the more women on the board, themore women in the management team. This indicates that diversity on the board
advances inclusion of women in organization.
Management team diversity and share price performance
650
550
450
350
250
15050
2009

2010
15%

201125%

33%

2012
50%

2013

All companies

2014

2015

2016

Source: The CS Gender 3000: The Reward for Change, Credit Suisse, September 2016

Board diversity and share price performance
150
100
500
2006

2007

2008

World - No women on the board

2009

2010

2011

World -1or more women on the board

2012

2013

2014

2015

2016

Source: The CS Gender 3000: The Reward for Change, Credit Suisse, September 2016180

Insurance Effects:
The share price of companies withmore women on the board drops
less and recovers more quickly in abear market.

160
1401201008060
Dec 05

Dec 06

No women on the board

Dec 07

Dec 08

Dec 09Dec 10Dec 11

1or more women on the board

Source: Gender diversity and corporate performance, Credit Suisse, August 201210

Bu s i n e s s C as e

C as e 3 Diversity in senior leadership and Inclusion in organizations
Studies suggest that presence of women in corporate leadership fosters inclusive
culture and promotes inclusion of women in mid to top layers.
Women on the Board and Japanese Women Workers
45%

42.1%

40%

AVERAGE, ALL COMPANIES
35%
Average Percentage of Women

30%
25%

33.4%32.9%
26.6%

25.8%

20%

18.4%

15%
10%

9.4%

5%

4.7%

7.4%

0%

New HiresNo women on the board

Work Force
1 woman on the board

Mid/Senior Management

2+ women on the board

Source: The Tipping Point: Women on Boards and Financial Performance, MSCI, December 2016

Inclusive company culture contributes to attraction of talented resources and lower
turnover rate.

86%

86% of female
millennials consider
a company’s inclusion
policies before
accepting jobs

83%

83% of millennials areactively engaged
when they believe
their organization
fosters an inclusive
cultureSource: Inclusion Playbook, Deloitte, 2017

Theory of Morality and Economy As One
Eiichi Sibusawa (1840–1931)
Called “Father of Japan’s Capitalism,” Shibusawa founded 500 banks andcorporations including the Japan’s first bank. He believed in the ideology that statesthat it is not unnatural that corporations pursue their financial benefits, however,there should be a moral purpose underneath and they should not forget their
responsibility for the prosperity of a county and all humankind.

11Ou r M i s s i o n30% Club supports
Japanese corporations
with structural reform
Today Japanese corporations are under tremendous pressure fromoversee/domestic shareholders and institutional investors for astructural reform as a number of issues that Japanese corporations
face today such as low ROE, weak corporate governance, and genderimbalanceare rooted deeply in the rigid corporate structure which
was built basing on the past successful business model.
Many corporations now promote diversity, however, without
addressing the root cause, the effect is temporary and limited.
One of the most important factors for a structural reform is tosecure diversity in a senior leadership and decision making bodies
as considering many different stakeholders and eliminating “groupthink” are very critical for a real change. It is also important thatdiversity in the senior leadership and decision making bodies reaches
30%, the critical mass which is required to affect decision making.
30% Club Japan supports Japanese corporations not only byaddressing the issues of diversity at the top, but also by broadening
femalepipeline at all layers of organizations for a sustainable change.
30% Club is a “platform” for various organizations such as institutional
investors, government, media, professional firms, executive searchfirms and universities to work together and addresses the issue much
more comprehensively and efficiently.

Co n t ac t
30% Club Japan Campaign Manager: Michiko Tadamatsu
jpdt30percentclubr@tohmatsu.co.jp
https://30percentclub.org/about/chapters/japan

12