KPMG Japan
CFO Survey 2021
December 2021

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Contents
Survey Methodology 02

Executive Summary 04
KPMG’s Specialist Insights 10
Business Strategy
Investment Strategy and Corporate Funding
Corporate GovernanceRisk Management
Tax
Comprehensive Reporting
Accounting and Finance

13
21
29
33
39
43
49

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Foreword
This marks the third KPMG Japan CFO survey since

The survey results indicate that CFOs now have

Companies are expected to redefine their purpose so

its launch in 2019. It has been a busy year for CFOs,a better understanding of how their response to

as to clearly reflect their commitment to this purpose

who have had to grapple with the prolonged impacts

sustainability issues impacts mid- and long-termin their SX initiatives. A simple response to system

of COVID-19 while paving the way to a new normal

corporate values. They also show polarized responses

requirements will not suffice. In order to truly achieve

for running their business and communicating with

with regard to how they analyze sustainability issues that

SX, companies need to identify which elements of

employees. We are extremely grateful for the time theyneed to be addressed, and the implementation status ofsustainability to prioritize according to their particularhave made to participate in this survey.

specific measures in the CFO agenda.

characteristics and environment, and then integrate

In 2021, a major challenge faced by CFOs has beenthat of redefining their corporate purpose in light of thethese elements into their corporate strategy andVarious rules and systems are now being introduced

decision-making.

Build Back Better agenda, and in anticipation of a steadywith the aim of urging action on pressing global

growth strategy for a post-pandemic era that continues

environmental and social issues, an initiative in which

to be complicated by COVID-19 variants.

Europe is taking a lead. In Japan, the Suga Cabinet

for companies tackling the complex challenges thatannounced in November 2020 its goal of reducing

continue to come their way.

This survey looks at how CFOs currently view

We hope that this report will provide useful insights

greenhouse gas emissions to net zero by 2050. Japan’ssustainability transformation (SX) as a means of making

Corporate Governance Code (revised June 2021) now

their business models more resilient, and how theyclearly states that companies listed on the Prime

integrate sustainability into their strategic decision-

Market should enhance the quality and quantity ofmaking with the aim of enhancing corporate value in the

climate-related disclosures. As a result, I am sure many

medium to long term. We also look at the challenges

companies in Japan have found themselves facing a

CFOs face in implementing SX.

wave of new legislation related to sustainability.

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan Chairman

Toshiya Mori

KPMG Japan CFO Survey 2021

1

KPMG Japan CFO Survey 2021

Survey Methodology

Survey period

Sep. 1 to Oct. 8, 2021

Breakdown of 461 companies by annual revenue

248*Consolidated revenues for the most recent ﬁscal year ended between
April 2020 and March 2021

115

Less than JPY 100 billion

Between JPY
100 billion and
JPY 500 billion

74

Between JPY
500 billion and
JPY 3 trillion

24

JPY 3 trillion
or moreSurvey contents

29questions relating to the impacts
SX* will likely have on the
CFO agenda

Number of valid responses

461

Breakdown of 461 companies by sector
Machinery & Materials

Building & Construction

60

listed companies
Consumer Goods

28
Food & Drink

41

Presentation of survey results as a ratio

Professional Business Services

Survey results as a ratio are rounded to the nearest
whole number and may not add up to 100 percent.

Transport, Logistics & Leisure

23

2

19

Chemicals

19© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

12
12
Telecommunications

Automotive

28

13

Asset Management

Software29

16

Power, Utilities, Gas & Oil

Banking

31*SX
Sustainability transformation refers to the integrationof sustainability into strategic decision-making,increasing business resiliency, and improving mid- andlong-term corporate value.

Pharmaceutical &Medical Devices
Electronics

Steel & Metals

18

General Trading Company

17

27

32

RetailIT Services

11

8
Capital Markets

5
Insurance

5
Media

4
Healthcare3

Survey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

Business
Strategy

Investment Strategy
andCorporate Funding

Corporate
Governance

Risk
Management

Tax

Comprehensive
ReportingAccounting and
FinanceIndustry classiﬁcation
Building & Construction
Construction services,
engineering & construction

Food & Drink
Agribusiness, food andbeverages, tobacco

Chemicals
Chemicals, chemical industry

Machinery & Materials
SoftwareInsurance

SoftwareInsurance

Electronics

IT Services

Capital Markets

Electric appliances, electronic devices

IT services

Capital Markets

Machinery manufacturing, construction
manufacturing, industrial manufacturing,rubber, glass, soil & stone, textile products,
pulp & paper

Automotive

Media

Asset Management

Automobile OEMs, automotive industry
suppliers, commercial vehicles

Advertising, television,
radio, movies, music,
publishing, newspapers

Consumer Goods

General Trading Company

Professional Business Services

Furniture, apparel, household goods

General trading company

Professional business services

Transport,
Logistics & Leisure

RetailReal estate, REIT,
asset management, leasing

Pharmaceuticals &Medical Devices
Brand-name drugs, generics,
medical devices manufacturing,
pharmaceuticals & medical devices
wholesaling, biotechnology, nutritional
supplements, medical research

Power, Utilities, Gas & Oil
Electricity, water supply, oil,coal, gas, mining

Steel & Metals
Steel, metal products,
nonferrous metals industry

Ground transportation, sea freighttransportation, air transportation,
warehousing, railroads, leisureGrocery retail, department stores,
other retail shops,
e-commerce, restaurants

Telecommunications

Banking

Wireline and wirelessBanking© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Healthcare Services
Hospitals, nursing facilities

KPMG Japan CFO Survey 2021

3

KPMG Japan CFO Survey 2021

Executive
Summary

The traditional CFO
HumancapitalCFO

The roles required of a CFO
are changing as the concept
of corporate values become
more expansive

roles

corporate value

Head of Sustainable Value
Headquarters,
KPMG AZSA LLC

Financial
capitalNaturalcapital*1

Financial
capitalManufacturing
capitalFinancial reporting

Value reporting

CFO roles cover only a small aspect of corporate
value based on ﬁnancial factors andLinking the changes in the quality or amount of eachtype of capital to corporate value will

do not adequately satisfy corporate
accountability.

enable more comprehensive reporting andencourage better decision-making bothinternally and externally.
Financial

Financial

Regulations aimed at achieving a sustainable
society are being introduced to push companies
to address environmental and social issues.
Companies will only be able to stay relevant inthis new environment if CFOs evolve from theirtraditional role of controlling financial capital to© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Non-ﬁnancial

one that encompasses comprehensive control ofa broad range of corporate capital, including nonfinancial capital (i.e., natural capital*1, social capital*2,
human capital, intellectual capital, manufacturing
capital and financial capital).

*1 Natural capital: Environmental resources including air, water, minerals, and ecosystems*2 Social capital: Trusting relationships, relationships with stakeholders, etc.

4Intellectual
capitalSocialcapital*2

Components of

Yoshihide Takehisa

The future CFO

Survey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

Many CFOs are beginning to see
non-financial factors as an essential
component of corporate value.
When asked what issues have significant impact on
corporate value now or in the future, a majority of CFOs
responded human capital management, climate change
and diversity, while over a third also responded intellectual
capital management.
This indicates that CFOs are becoming more aware of
the impact of sustainability initiatives to address theseissues on corporate value. This indicates that many CFOs
are becoming more aware that such sustainability initiatives
that traditionally did not appear on balance sheets are
essential components of corporate value.

Business
Strategy

Investment Strategy
andCorporate Funding

Corporate
Governance

Risk
Management

Tax

Comprehensive
ReportingAccounting and
Finance

Sustainability issues CFOs expect to have a significant impact
on their current or future corporate value (multiple choice)77%

Human capital management

69%

Climate change

53%

Diversity

34%

Intellectual capital management
Human rights

11%

Water consumption
and withdrawal

10%

Tax transparency including issues
regarding excessive tax reduction

3%

Biodiversity

2%

None in particular1%© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

5

KPMG Japan CFO Survey 2021

Executive Summary

Three roles
expected of CFOs
for SX* promotion

Three roles of the CFO

01 Partner

02 Enabler

03 Presenter

Value creation partner

Transformation enabler

Corporate value presenter

As a partner to the CEO, provide
information for decision-making
based on non-ﬁnancial factors

Promote and accelerate SX initiatives
by establishing frameworks andvisualizing information

Report corporate sustainability andgrowth initiatives to stakeholders,and provide feedback to management

CFO

Provide information

Conversation

Sustainable growth
CEO/Board of Directors

Human
capitalNaturalcapitalIntellectual
capitalFinancial
capitalSocialcapital*SX
Sustainability transformation refers to the integration ofsustainability into strategic decision-making, increasing
business resiliency, and improving mid- and long-term
corporate value.

6© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Manufacturing
capital

Stakeholders

Survey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

Business
Strategy

Investment Strategy
andCorporate Funding

Corporate
Governance

Now that the definition of corporate value isexpanding to include non-financial factors, CFOs willneed to adapt their role as they oversee a broader rangeof corporate activities.
CFOs play a significant role in the success of SX
and achieving sustainable growth for their company.
CFOs are expected to drive value creation, enabletransformation, and present corporate value in thecontext of SX.
Whether or not companies are able to achievesustainable growth will depend on the ability of CFOs
to redefine their own roles and demonstrate strong
leadership in promoting the company’s SX agenda.

for SX promotion (see page 50). We can see that CFOs
are embracing the increasing expectations for their roleof driving value creation. With regard to comprehensive
reporting covering both financial and sustainability
information, many CFOs view “selecting sustainabilityrelated metrics that should be monitored and setting
goals (50 percent)” and “connecting sustainabilityrelated measures with corporate value creation (47percent)” as major challenges (see page 44).
This shows that CFOs are beginning to recognize theirrole of supporting the CEO by setting and managing
sustainability-related metrics and goals aimed atenhancing corporate value.

1. Value creation partner

2. Transformation enabler

The CFO is expected to provide the CEO and boardof directors information including non-financial factors
to support their decision-making for increasing mid- andlong-term corporate value. For example, mid- and longterm strategies and planning need to consider ESG
factors from the viewpoint of the entire value chain,including suppliers and vendors. It is also effective for
CFOs to reevaluate and update decision-making rules,
including a framework for formulating strategies andstandards for investing in or exiting a business.
This survey revealed that many CFOs view mid- andlong-term strategies and planning including corporate
strategy (45 percent) and management plan (39 percent)as areas that are considered to be of greater importance

It is also the CFO’s role to monitor the execution ofstrategies and plans according to KPI (key performanceindicators) and establish a framework for making
necessary evaluations. Companies need to appropriately
control potential damage to corporate value through risk
management that takes into consideration the impact ofcorporate activities on the environment and society. The
CFO is also expected to take on the role of promoting
and accelerating SX initiatives through the visualizationof non-financial information, and its integration into
financial information-based corporate management.
The survey also shows that almost half of CFOs
recognize the need for the sustainability department
and risk management department to collaborate or© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

RiskManagement

Tax

Comprehensive
ReportingAccounting and
Finance

integrate as a risk management initiative in promoting
SX (see page 36). 77 percent of CFOs also feel that
improvements are needed in the current structure of theaccounting and finance department in order to achieve
SX (see page 52). Many CFOs show a willingness
to embrace SX by transforming the accounting andfinance department under their control to meet the newchallenges of integrating non-financial information.

3. Corporate value presenter
The CFO will also play an important role in reporting
SX initiatives and outcomes as well as engaging inconversations with investors and stakeholders.
We asked CFOs the level of impact they expect ESG
ratings to have on corporate funding other than ESG
bonds. More than half of CFOs believe either that there
will be considerable impact including a rise in funding
costs (46 percent ), or that there will be significant
impact if an ESG rating is not maintained (14 percent)(see page 26). To prepare for this rise in funding costs,
CFOs need to have conversations with stakeholders
including financial institutions and investors, andclearly communicate their sustainability initiatives andoutcomes. When asked about their involvement insustainability reporting, 63 percent of CFOs responded
that they will increase their involvement in the future(see page 45), showing a stronger commitment thanever before to the conversation with stakeholders intheir role of corporate value presenter.

KPMG Japan CFO Survey 2021

7

KPMG Japan CFO Survey 2021

Executive Summary

The priority given to
SX as a management
issue is key

Companies prioritizing SX as a management issue have a high level ofawareness and responsiveness
The following page indicates a big gap in the level
of SX awareness and responsiveness between
companies prioritizing SX as a management issue
and companies taking a wait-and-see approach as
they are still unsure of the impacts.

Approximately one third of the companies
surveyed regard SX as a top-priority management
issue and a prerequisite for their businessstrategy, demonstrating a high level of awarenessand responsiveness.

Which statement best reflects the positioning of SX
as a management issue? (Single choice)

Other

Taking a wait-and-see approachas the impacts are unknown

12%

Companies taking a
wait-and-see approach

Taking or planning to takeinitiative in the analysis
and evaluation of impacts

Positioned as a top priority
and a prerequisite for thebusiness strategy

2%Companies positioning
SX as a top priority

32%

27%
27%

8

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

While the magnitude of impacts is recognized,
prioritizing traditional issues

Survey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

Investment Strategy
andCorporate Funding

Business
Strategy

Corporate
Governance

Risk
Management

Tax

Comprehensive
ReportingAccounting and
Finance

There is a big gap in the level of awareness and response between companies positioning SX as a top priority andcompanies taking a wait-and-see approach
As you can see from responses to the questions
below, there is a big difference in the level of awarenessand responsiveness depending on how a company
positions SX as a management issue. Companies
positioning SX as a top priority and prerequisite for

their business strategy have a solid understanding ofsustainability issues. While there has been a polarized
response for some time, it appears the gap has further
widened due to the significant progress made bycompanies prioritizing SX in the past few years.

We can infer from the results that the priority of SX
as a management issue is key. How companies position
SX will affect the speed at which it is achieved, which inturn will affect the mid- and long-term corporate value.

Responses from top-priority companies
Executing strategies (30%)/
planning strategies (29%) toachieve SX

Increasing DX investments (69%)/
investments in environmental
measures(65%)/investments inhuman resources (55%)

Q.

Q.

What are your company’s
SX issues?

Understanding and evaluating
sustainability issues (62%)

How will you change yourinvestment strategy todrive SX?

Still undecided (51%)

They are associated (68%)

Q.

Are your risk management
activities designed andexecuted in association withkey sustainability issues?

They are not sufﬁciently
associated (76%)

Future tax impacts such as carbon
tax (53%)/ Measures to provide tax
incentives for investment (44%)

Q.

What tax-related measuresor considerations have you
implemented or do you
plan to implement inpromoting SX?

No considerations made or
expected to be made in particular(78%)

Fair amount of current involvement,
expected to increase (41%)/Sufﬁcient
involvement to date (26%)

Q.

What is the current level of
CFO involvement insustainability reporting?

None currently but plan to increase
involvement in the future (55%)/none
currently and do not expect any future
involvement (22%)

Responses of wait-and-see companies© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

9

KPMG Japan CFO Survey 2021

KPMG’sSpecialist
Insights
A roadmap to achieving SX
The survey asked CFOs what potential
impacts SX may have on their day-to-day
agenda. KPMG’s specialists provide theirinsights based on survey responses.

10© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the JapaneseCertified Public Accountants Law and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English
company limited by guarantee. All rights reserved.

13

Page

Business Strategy
Initiatives need to consider
regulations and policies thatencourage addressing
sustainability issues

Page

21

Investment Strategy
Establishing an integrated roadmap forinvestments in human resources,
environmental measures, and digitaltransformation to achieve SX

Corporate Funding
We are fast approaching a time whencompanies will be held accountable
for ESG discipline by markets andﬁnancial institutions

Survey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

Page

Page

33

Business
Strategy

Investment Strategy
andCorporate Funding

Corporate
Governance

Risk
Management

Risk Management
Developing a risk management
system capable of dealing withchanging sustainability issues

Page

49

Tax

Comprehensive
ReportingAccounting and
Finance

Accounting and FinanceTransforming the accounting andﬁnance department in response toexpanding CFO roles

29

Corporate Governance
Developing effective corporate
governance toward achieving SX

Tax

Page

39

Responding to increasing
expectations by addressing
tax governance as asustainability issue© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Page

43

Comprehensive Reporting
Committing to providing sustainability
information as a factor that impacts
corporate value

KPMG Japan CFO Survey 2021

11

KPMG Japan CFO Survey 2021

Spotlights
Introduction of Spotlights
The survey asked CFOs to share their views on the status of corporate funding amid ongoing impacts of
COVID-19, and on the introduction of KAMs (Key Audit Matters) from the ﬁscal year ended March 2021.

01

Change in response to climate change risk from 2020 survey results

02

Change in ﬁnancial measures amid COVID-19 from 2020 survey results

03
04

12

Companies are taking a more practical approach to climate change risk.

Interest has shifted from reviewing the level of cash and deposits to strengthening fundmanagement of subsidiaries and ﬁnancial governance.

Page

20

Page

28

Page

48

Page

51

Response to ﬁrst year following introduction of KAMs (Key Audit Matters)
Responses were mixed, with both positive views that KAMs allowed a deeper
understanding of ﬁnancial risks, and negative views that it took a considerable
amount of time.

Change in CFO roles from 2019 survey results
CFO roles are expanding, in the areas of “IT strategy and system planning” and“risk management.”© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG’s Specialist Insights
Business Strategy© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

13

KPMG Japan CFO Survey 2021

Business Strategy

Initiatives need to consider
regulations and policies
that encourage addressing
sustainability issues

Larger companies have a stronger
commitment to SX

The positioning of SX as a management issue
that best reflects your company (single choice)
Higher priority
in larger companies

16%
36%
64%

36%

88%

21%
29%
19%

1%

Less than
JPY 100 billion

Kaoru Mano

15%

33%
7%

3%

20%

1%

BetweenBetween
JPY 100 billion JPY 500 billion
andand
JPY 500 billion
JPY 3 trillion

8%

JPY 3 trillion
or morePositioned as a top priority and a prerequisite forbusiness strategy
While the magnitude of impacts is recognized,
traditional issues are prioritized
Currently taking or planning to take initiatives in the analysis
and evaluation of impacts
Taking a wait-and-see approach as the impacts are unknown
Other

Partner
KPMG FAS

14

4%© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Sustainability has recently been attracting publicattention in Japan, especially following then-Prime
Minister Suga’s 2050 Carbon Neutrality Declarationin October 2020, and it is now being addressed as amanagement issue at many companies. Europe has
been leading the rest of the world in pushing companies
to embrace sustainability through imposing regulations
and policies that encourage economically rational
decisions, such as a relatively high carbon tax.
Japan meanwhile lags behind in the establishmentof similar regulations and policies, where carbon tax
is still low compared to Europe. The survey revealed
that larger companies however place higher priority on
sustainability, with this trend increasing in proportion tocompany size.
Larger Japanese companies may be more sensitive tothis matter as they are likely to have global businesses
that are already affected by regulations and policies
in Europe. They also need to consider the economic
impacts of future regulations and policies imposed inJapan on their corporate performance.

Survey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

Business
Strategy

Investment Strategy
andCorporate Funding

Corporate
Governance

What is the most critical issue your company
faces in promoting SX? (Single choice)

Other 1%

21

13

%

Less than half of companies%

are at the stage of

Executingstrategies toachieve SX

Articulating andbuilding a sharedunderstanding of thecorporate purpose

RiskManagement

Tax

Comprehensive
ReportingAccounting and
Finance

A majority of Japanese companies are not yet
integrating SX into their strategies
While some companies in leading industries are ata stage of planning and executing SX strategies, 43
percent responded that they are still in the process ofunderstanding and evaluating sustainability issues. It
appears a majority of companies are still assessing thedirection of future regulations and policies, and theireconomic impacts on corporate performance.

integrating SX

21%

into their strategies

Planning strategies
to achieve SX

43%Understanding andevaluating sustainability issues© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

15

KPMG Japan CFO Survey 2021

Business Strategy

While there is a high level of concern regarding
BCP, governance risk, and carbon tax, trends
differ by industry

Concerns that may have a major impact on thecurrent business strategy (Multiple choice)

Supply chain disruption in the eventof an unforeseen situation (BCP)

54%

Governance risk including violationof laws and quality issues

Particularly high forindustries with amanufacturing process

52%

Particularly high inpharmaceutical andtelecommunications

Carbon tax which may impact
income and expenditure

45%

Green procurement which may impact
income and expenditure33%

ESG investment which may impact
corporate funding

21%

Human rights issues
in the supply chain
Other

16

Particularly high inenergy, automotive, andgeneral trading company

19%5%© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

There are differences by industry in CFO viewsof sustainability issues that may impact businessstrategy—in general, industries such as automotive,
machinery and materials, consumer goods andpharmaceuticals which have a manufacturing process
are concerned about potential disruptions in their
supply chain caused by unforeseen events, or their BCP,
while regulated industries such as pharmaceuticals
and telecommunications are more concerned about
governance risk. For energy, automotive, and general
trading companies, carbon tax and its impact on income
and expenditure are major concerns.

Executive
Summary

SurveyMethodology

KPMG’sSpecialist Insights

Business
Strategy

Investment Strategy
andCorporate Funding

Corporate
Governance

What is the status of reviewing and reorganizing the businessportfolio on the premise of SX? (Single choice)
By annual revenue

11%
38%

2%

4%

8%

30%

Less than
JPY 100 billion

8%

among larger companies and companies
for which SX is a top priority.

35%*Portfolio transformation

63%

38%
50%

PX* initiatives can be seenCompleted

39%

28%

18%

Between
JPY 100 billion and
JPY 500 billion

Between
JPY 500 billion and
JPY 3 trillion

25%

In progress4%

JPY 3 trillion
or moreUnder consideration
Not under consideration

By positioning of SX as a management issue

16%

2%

11%

9%

44%

46%

48%

41%

43%

32%

12%

84%

10%
Taking a wait-and-see Currently taking
While the magnitude of
Positioned
approach asor planning to take impacts is recognized, as a top priority
the impacts
initiatives in the analysis traditional issues
and a prerequisite
are unknown and evaluation of impacts
are prioritizedfor business strategy© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

RiskManagement

Tax

Comprehensive
ReportingAccounting and
Finance

Responding flexibly to changing sustainability
issues while considering the financial andnon-financial impacts
As a final question, we asked CFOs about therelationship between SX and PX (portfolio transformation)
which refers to the process of reviewing and reorganizing
the business portfolio on the premise of SX. Companies
with relatively large revenues are more progressivewith their portfolio review and reorganization, withhalf of companies with revenues of JPY 500 billion ormore responding that this has been completed or isin progress. More than half of companies prioritizing
SX responded “Completed” or “In progress.” These
responses suggest that larger companies or companies
building a portfolio based on multiple businesses are
more sensitive to future regulations and policies given
the greater impact they have on their business, andtherefore accelerate their initiatives.
While human capital management, climate change,and diversity are important issues cited in this survey(see page 5), the impacts of biodiversity, water
consumption and withdrawal, and human rights are
expected to increase in the near future.
A flexible response to changing sustainability issues
while considering the financial and non-financial impacts
on corporate management will continue to be requiredin the future.

KPMG Japan CFO Survey 2021

17

KPMG Japan CFO Survey 2021

Business Strategy
Se c tor In s i ghts

18

Koichi Iguchi

Yuji Ito

Automotive Partner,
KPMG Japan

Head of Consumer & Retail,
KPMG Japan

It is an urgent task for the automotive industry to define a specificapproach to addressing the shift to electrification

New initiatives to prepare for supply chain disruptions
caused by climate change

The survey clearly indicates that SX is a top-priority management concern in theautomotive industry, and that there is a growing awareness of the impacts of climatechange and environmental issues on corporate value. This stance is supported by thetrend among automotive companies of increasing future investment in the environment
rather than in M&A strategies. This trend is consistent with successive recent
announcements by automotive manufacturers of their shift to electrification with afocus on EV, in a move toward a decarbonized society.
On the other hand, there seems to be a low level of awareness regarding analysis
and evaluation of sustainability impacts, despite positioning SX as a top priority. Thismay be a reflection of the fact that while Japanese automobile manufacturers haveplans for a shift to electrification, concrete strategies will only gradually emerge.
The automotive industry is built upon a vast vertically integrated supply chain model; atransformation of the business model will disrupt the entire supply chain, and will be animmense undertaking. It is therefore clear why companies may want to take a wait-andsee approach although they have a sense of urgency regarding a shift to electrification.
However, an early agreement on a collective approach by the entire industry is expectedin view of the enormous impact on the supply chain, both upstream and downstream,that would be caused by a major change in direction such as a lateral division of labor.

In the consumer goods and retail industry, the percentage of CFOs who selected“supply chain disruption in the event of an unforeseen situation (BCP)” as a major
concern that may impact business strategy was higher than for other industries.
Food and beverage manufacturers in particular are concerned about the impactof natural disasters and mid- and long-term climate change on food ingredients,
agricultural products, livestock products and marine products, and their relevant
production and supply chains. The retail industry is also highly conscious of supply chain
disruption risk because of the role that their many stores will play as a regional lifeline in
the event of an unforeseen situation.
As an example of specific measures to address climate change risks affecting the
supply chain over the medium to long term, one climate risk initiative is the development
and quality improvement of plant-based meats that use no or almost no livestock. Suchplant-based meats are not prone to the impacts of climate change and may also reducegreenhouse gas emissions. Manufacturers, logistics companies and retailers have also
begun to collaborate on an approach to cope with natural disasters, whereby weather
forecasts and expressway information are incorporated into the analysis of internal datain order to formulate delivery plans based on a prediction of a disaster.

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Survey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

Business
Strategy

Investment Strategy
andCorporate Funding

Corporate
Governance

Risk
Management

Tax

Comprehensive
ReportingAccounting and
Finance

Satoshi Wada
Technology, Media & Telecommunications Director,
KPMG Japan

Human capital management is key toenhancing corporate value
In technology, media, and telecommunications,most companies cited human capital management asa major sustainability issue that may impact corporate
value in the future. This is consistent with KPMGInternational’s Technology Industry CEO Outlook 2020,
where “talent risk” was cited as a top obstacle to
growth. CFOs are aware that securing professional
talent is essential for keeping up with rapid technologicalchanges in the industry and enabling sustainable growthof corporate value.
Another industry
characteristic is thatmany companies areactively working tocreate an attractive
workplace that isinclusive and diverse.

Meanwhile, we also noted a difference among thetechnology, media and telecommunications industries
in the level of awareness regarding climate change,
an issue for which awareness levels are high acrossall industries. In the technology industry, awareness
was particularly high among electrical equipment
manufacturers. This may be because of the extent of
their global business, which is feeling the effects ofglobal environmental and carbon-neutral efforts thatare also impacting suppliers of giant IT companies. In
contrast, the awareness level was low in the media andtelecommunications industries. There are, however,growing expectations for new environmental initiatives
in these industries as well, such as the introduction ofgreen power in massive communication server groups
and data centers.

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

19

KPMG Japan CFO Survey 2021

Spotlight 1
Change in response to climate change
risk from 2020 survey results
Companies are taking a more practical approach toclimate change risk
Not a day goes by without the media covering the issueof climate change. Compared with survey results in 2020,
as measures related to this pressing topic that have been or
are planned to be implemented, more companies are now
addressing recommendations made by the Task Force on
Climate-related Financial Disclosures (TCFD). This is becoming
an urgent issue for companies that will be listed on the Prime
Market from April 2022.
The past year has also seen more companies taking
initiatives for “measuring and managing greenhouse gas
emissions and reduction” and the “decarbonization of electric
power sources.” CFOs are not only more cognizant of theseissues, but are shifting to the implementation of specific andeffective measures.
Companies are steadily beginning their corporatetransformation to address climate change risk.

Measures related to climate change risk thatare in progress or under consideration
Addressing recommendations by
the Task Force on Climate-related
Financial Disclosures (TCFD)
Measuring and managing greenhouse gas
emissions and reduction
and carbon management

25%

Setting climate change risk as a prerequisite forformulating medium-term plans and business strategies

26%

Decarbonization ofelectric power sources17%© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

23%

16%
12%

Measures for physical risks(closure of company sites and supply chain disruptions)

Reviewing company assets and business portfolio
for decarbonization

32%

22%
19%

Investments in renewable energies

Multiple-scenario analysis of the impact of
relevant regulations on your company

34%

30%

12%

Developing or investing in technology that contributes topreventing or mitigating climate change risk

Utilizing digital technologies such as blockchain
for carbon tracking

20

46%

18%

10%

16%

12%
10%
2%
2%

2021
2020

KPMG’s Specialist Insights
I nves t m ent S t r a t e g y a n d C o r p o r a t e Fu n d i n g© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

21

KPMG Japan CFO Survey 2021

Investment Strategy andCorporate Funding
Investment Strategy

Establishing an integrated
roadmap for investments inhuman resources, environmental
measures, and digitaltransformation to achieve SX
Corporate Funding

We are fast approaching a time
when companies will be held
accountable for ESG discipline bymarkets and financial institutions

How will you change your investment strategy
in promoting SX? (Multiple choice)54%

Increase investments in DX
Increase investments inhuman resources

48%

Increase investments inenvironmental measures

46%
31%

Strengthen R&D

21%

Strengthen M&A

15%

Still undecided

9%

No change from current policy

Other

2%

Daisuke Tsuchiya
Global Financial Management Director,
Financial Advisory Services
KPMG AZSA LLC

22© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Survey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

Business
Strategy

Investment Strategy
andCorporate Funding

Corporate
Governance

Risk
Management

Tax

Comprehensive
ReportingAccounting and
Finance

Investments in human resources, environmental measures anddigital transformation should be integrated
CFOs view investments in human resources,
environmental measures and digital transformation (DX)as top priorities, and plan to increase these investmentsin the future.
Japan’s Corporate Governance Code revised in June
2021 includes requirements for companies to address
sustainability issues, reorganize business portfolios
and reallocate management resources in addition toeffective oversight of such initiatives by the boardof directors, citing investments in human capital andintellectual capital as important pillars for achieving
these initiatives.
Global investments of up to 8,000 trillion yen are
required in order to realize the commitments stipulated
in the Paris Agreement as measures against climatechange. Major developed countries are introducing
policies toward carbon neutrality, and huge investments
are also expected in the private sector as companies
accelerate their own carbon neutral efforts. The possibilityof companies that do not adopt a net zero agenda being
pushed out of supply chains makes environmental
investments imperative for business continuity.

While DX tends to be seen as an extension of
traditional IT investments such as for improving
productivity, the actual aim of DX is for companies
to transform business models and gain competitive
advantages through the utilization of data and digitaltechnologies. DX, however, is not effective on its own—
it requires human resources capable of promoting andutilizing its potential. We also expect environmental
measures to increasingly make use of DX. An exampleof this would be the use of blockchain technology to
track carbon emissions.
CFOs have the role of accelerating investments
in human resources, environmental measuresand DX as an integrated initiative given theirstrong interrelationship.

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

23

KPMG Japan CFO Survey 2021

Investment Strategy andCorporate Funding

How the means of corporate funding will change in line with SX (Single choice)Consider equity ﬁnancing
as needed
Proportion of CFOs
considering
additional funding

Positioning of SX among
companies who responded“No change”

Other

4%

22%

9%

29%

30% 21%

Use interestbearing
liabilities

36%
No change

30%

No Make investments
within the range offree cash ﬂow

24

Taking a wait-and-see approachas the impacts are unknown
Currently taking or planningto take initiatives in the analysis
and evaluation of impacts

28% While the magnitude of impacts
is recognized, traditional issues
are prioritized

20% Positioned as a top priority anda prerequisite for business strategy© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

CFOs voiced the need for assessing impacts on
corporate funding
Funding measures are also required for making
investments. 30 percent of CFOs responded that theywould consider using interest-bearing liabilities or equity
financing as needed in line with SX developments,
while 30 percent responded that they would invest
within their range of free cash flow. Another 36 percent
responded that they would not be changing theirmeans of funding. The results show that a third of
all respondents are considering additional funding topromote SX, while two thirds plan to address SX but
without any additional funding.
Of companies that do not plan to change their meansof funding, however, in response to the positioningof SX as a management issue, 29 percent have juststarted analyzing and assessing the impacts of SX,
while 22 percent are still uncertain of the impacts.
This suggests that a number of CFOs are unsure of
the amount of necessary funding as SX is not clearly
linked to their management issues. Some companies
may be struggling to assess SX investments and theireffectiveness against a backdrop of drastic changes
happening in their environment at a rapid pace.

Survey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

Investment Strategy
andCorporate Funding

Business
Strategy

Corporate
Governance

Issued or considering theissuing of ESG bonds

Breakdown by annual revenue

1%

11%

49%
No plans to consider

4%

29%

Will consider if
there are ﬁnancial
beneﬁts

23%

33%

71%

50%
8%
8%

Less than
JPY 100 billion

JPY 3 trillion
or more* “Other” accounts for 0% in either case

8%

Tax

Comprehensive
ReportingAccounting and
FinanceA cautious and critical approach to the use of
ESG bonds including interest rate benefits

Will ESG bonds be utilized in line with SX? (Single choice)

Other 2%

Risk
Management

Issued or considering the issuing of ESG bonds
Will consider if there are ﬁnancial beneﬁts
Will consider even if there are no ﬁnancial
beneﬁts (i.e. expecting marketing effects)
No plans to consider
Other© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

While ESG bonds such as green bonds are a common
means of corporate funding, only 11 percent of CFOs
responded that they have issued or are considering
issuing ESG bonds. CFOs of smaller companies
were more likely to respond that they had no plans to
issue ESG bonds, which is indicative of the current
reality in which ESG bonds are mainly issued by larger
companies. 29 percent of CFOs responded that theywould “consider using ESG bonds if there are financial
benefits.” This may be due to the current lack of a clear
greenium (risk premium seen in green bonds) for ESG
bonds, which means that the difference in interest
rate levels from straight bonds is insignificant. The
management and disclosures required for ESG bonds
can also be more burdensome compared to normal
funding as restrictions are imposed on how funds canbe used, and usage needs to be traced and reported.
The results indicate that CFOs take a cautious andcritical position on the decision to utilize ESG bonds,
including interest rate benefits.

KPMG Japan CFO Survey 2021

25

KPMG Japan CFO Survey 2021

Investment Strategy andCorporate Funding

To what extent will ESG assessments and ratings affect corporate
funding excluding ESG bonds in the future? (Single choice)
Other

2%

A total of38%
No impact

46%
Considerable impact
including a rise infunding cost

14%

60

%

responded that ESG assessments
and ratings will either have:“Considerable impact including
a rise in funding cost”
or“Signiﬁcant impact if an assessment
or rating is not maintained”

Signiﬁcant impact if assessment or
rating is not maintained26© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Accountability for both financial and
ESG discipline
The survey results show that some CFOs are cautious
about utilizing ESG bonds. 60 percent of CFOs however
believe that ESG assessments and ratings also affectbank loans and corporate bond issuance. ESG was
first introduced as a way for institutional investors toassess the sustainability issues of companies they
were investing in from an ESG perspective in theirbusiness evaluation. However, bond investors also
integrate an ESG perspective into their investment
decisions. Banks are also accelerating the move toincorporate assessment of ESG business feasibility
into loan standards. As ordinary loans become greener,
the breaking down of barriers between ESG andordinary bonds seems inevitable. If a difference in
ESG assessment reflects a difference in eligibility forcorporate funding, CFOs will be held accountable not
only for financial discipline, but also for ESG discipline(compliance with basic sustainability policies establishedby the company) by the markets and financial
institutions. The scope of CFO accountability is expected
to further expand in the future.

Survey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

Business
Strategy

Investment Strategy
andCorporate Funding

Corporate
Governance

Risk
Management

Tax

Comprehensive
ReportingAccounting and
Finance

Se c tor I ns i ghts

Yuta Tanaka

Seiichi Ono

Financial Services Sector Director,
KPMG Japan

Energy & Infrastructure Director,
KPMG JapanThe financial sector taking ESG bonds
to new heights

Having deeper dialogue with investors and financial institutions, andmoving to the strategy execution phase

The survey results showed that a small percentage of overall respondents has
positive appetite for the issuance of ESG bonds. On the contrary, the financial sector(including asset management business) had a higher response rate for support of ESG
bond issuance relative to other sectors. A growing demand for investment in ESG
bonds such as green bonds and sustainability bonds may be an underlying factor, withmajor banks and insurance companies in Japan being expected by society to increase
ESG investments and financing. Bonds issued by banks and other financial institutions
include those for financing green projects or investing in eco-friendly products.
Meanwhile in the asset management industry, ESG bonds are likely to be issued fordeveloping properties that contribute to solving environmental and social issues such as
mitigating impact from natural disasters.
Financial institutions are expected to provide sufficient funding for corporate efforts
aimed at decarbonization in accordance with the Basic Guidelines on Climate Transition
Finance issued in May 2021. As the ESG bond market volume is expected to expand
due to an increase in the issuance of transition bonds, issuing companies will need to
be transparent about their use of funds, measuring and disclosing their contributions todecarbonization in order to prevent greenwashing.

World politics and economies are shifting to decarbonization, with carbon taxes in particularimpacting companies’ income and expenditure, and corporate valuations by investors andfinancial institutions are rapidly changing. In these circumstances, financial measures including
corporate funding will become a top-priority management issue for companies in the energy
and chemical industries.
The SX phase is shifting from formulating strategies to executing them, especially amonglarge companies, in a move to maintain and enhance corporate value. Another sector
characteristic is that many companies are increasing environmental investments as a strategic
option. It will become more important in the future to engage in deeper dialogue with investors
and financial institutions, and demonstrate a clear consistency between information disclosuresand strategies based on a long-term roadmap for business restructuring.
In the power, utilities, gas and oil sector, nearly half of CFOs responded that they arestrengthening financial governance and relationships with financial institutions in responseto the impacts of COVID-19. Companies are proactively making investments in renewableenergies, and there is a steady move from consideration of action to execution of action toward
transforming their business structure.
As for impacts on business strategy, companies in the chemical industry have concerns
about supply chain disruption, in addition to the impact of carbon tax on their income andexpenditure. Meanwhile, regarding their status on SX initiatives, many CFOs in the chemicalindustry are in the phase of understanding and assessing their own issues, and are making
demonstrable efforts to address SX by investing in DX and environmental measures andstrengthening R&D.

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

27

KPMG Japan CFO Survey 2021

Spotlight 2
Change in financial measures amid COVID-19 ascompared with 2020 survey results
Interest has shifted from reviewing cash and deposits to strengthening
fund management of subsidiaries and financial governance.
The impacts of COVID-19 on businesses were just becoming apparent whenthe 2020 survey was conducted, and many CFOs cited a “review of cash anddeposits” as a top priority in terms of corporate funding and managing cash.
One year later, the interest of CFOs, especially those of larger companies,
is shifting to “strengthening the fund management of subsidiaries” and“strengthening financial governance,” as more companies find a means ofsourcing urgent funding.
Flexible collection and utilization of subsidiary funds by headquarters isa key issue for strengthening the fund management of subsidiaries andimplementing effective group-wide financial governance. Companies in North
America and Europe tend to have stronger authority and governance over theirsubsidiaries, developing a group-wide optimal framework in which funds areconcentrated at headquarters by utilizing a cash management system (CMS)
and dividend payments to subsidiaries. In contrast, some Japanese companies
not only lack clear rules, but the rules currently in place are not well understoodby subsidiaries. This essentially leads to strengthening of the authority ofsubsidiaries, making flexible collection of funds by headquarters difficult.
Many companies believe it is essential to gain the understanding of theirsubsidiaries before introducing a group-wide optimization framework. Suchan introduction would require the formulation of standards supported by aclear rationale agreed upon by both headquarters and a subsidiary. Companies

28

Measures implemented or planned to be implemented withregard to corporate funding and cash (Multiple choice)Rank’20 ’21
33%

Strengthening the fundmanagement of subsidiaries

2 1

Strengthening ﬁnancial
governance

4 1

Strengthening relationships
with bank

3 3

26%

Reviewing levels of
cash and deposits

1 4

25%

Use of ROIC, CCC, CCR
and other indices

6 4

25%
21%

Newly setting and reviewing thecommitment line and other indices

5 7

Analyzing debt capacity by rating

9 8

Analyzing debt capacity byreviewing the business plan

8 9None in particular

7 4

Other

10 10

28%

14%

37%

33%

33%
40%

26%

7%
8%
5%

14%
17%

2%
3%

25%

2021
2020

will need to establish optimal levels of cash and deposits as well as capitalrequirements which serve as the basis for dividends for each subsidiary, in orderto gain their understanding and strengthen governance. There needs to be ashared understanding of the rationale behind these levels between headquarters
and a subsidiary.

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG’s Specialist Insights
C o r p o r a t e G ove r n a n c e© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

29

KPMG Japan CFO Survey 2021

Corporate Governance

Developing effective
corporate governancetoward achieving SXSX related principles added to Japan’s Corporate Governance Coderevised in June 2021 that CFOs find challenging (Multiple choice)
Setting goals and disclosing
the progress for ensuring the diversityof core human resources

55%

Proactively responding tosustainability issues at the board level38%

Appointing additional
independent outside directors

18%Disclosing skills matrix for directors

14%

Establishing a reporting line fromthe internal audit department
directly to the board
Practicing highly independent
procedures for appointing anddismissing Kansayaku

11%
9%
24%

None in particular

Other

2%

Tomoko Waku
Sustainable Value Japan
Partner,
KPMG AZSA LLC

30

54% among companies with revenuesof JPY 3 trillion or more

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Survey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

Business
Strategy

Investment Strategy
andCorporate Funding

Corporate
Governance

Risk
Management

Tax

Comprehensive
ReportingAccounting and
Finance

Developing effective corporate governance toward achieving SX
In June 2021, the Financial Services Agency and theTokyo Stock Exchange (TSE) revised Japan’s Corporate
Governance Code for the second time. Against the
backdrop of corporate transformations triggered by
the COVID-19 pandemic, the revised Code presents
governance issues that need to be addressed bycompanies toward achieving sustainable growth in
the medium to long term. These include addressing
sustainability issues, making the Board of Directors
more effective, and promoting diversity in core humanresources, all of which are also important elementsin the integration of sustainability into strategic
decision-making and making business models more
resilient through SX.
In light of this, we asked CFOs which principles added
to the Corporate Governance Code would be difficult toaddress in the survey. “Setting goals and disclosing thecurrent status (progress) for securing diversity in corehuman resources” was the top response at 55 percent,followed by “proactively responding to sustainability
issues at the board level” at 38 percent.
A high number of CFOs responded that they arechallenging due to the need to address them in themedium to long term while tailoring measures to theunique circumstances of their company.

On the other hand, the third highest response was“none in particular” at 24 percent. Among companies
with revenues of JPY 3 trillion or more, this was chosenby 54 percent, suggesting that larger companies aremaking more progress addressing these issues.
The purpose of the Corporate Governance Codeis for companies to pursue sustainable growth intheir corporate value. However, since the businessenvironments are changing at a rapid pace and areincreasingly difficult to predict, it is essential forcompanies to continue their efforts in the medium tolong term even after they have once complied with the
Corporate Governance Code. New risks will continue toarise in line with environmental changes, and companies
need to be prepared to address such risks appropriately
according to their individual circumstances.

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

31

KPMG Japan CFO Survey 2021

Corporate GovernanceCriteria that CFOs expect to be challenging for atransition to the Prime Market (Multiple choice)Enhancing the quality and quantityof disclosures regarding
the impacts of climate change
None in particularTradable share ratio/
market capitalization standards
Disclosures in English

32

46%
23%
19%
15%

Nomination and Compensation
Committee consisting of a majority
of independent outside directors

10%

Appointing additional independent
outside directors(over a third of overall directors)

10%

Use of electronic voting platform
for institutional investors

8%

71% amongcompanies withrevenues of JPY
3 trillion or more

There needs to be a discussion at the board level regarding the impacts of climate change on
mid- and long-term corporate value
Japan’s revised Corporate Governance Code also
clarifies requirements which will be specifically requiredof companies listed on the Prime Market. The Prime
Market will be positioned as the highest-tier market
replacing the current TSE First Section following a new
segmentation of the TSE market scheduled for April
2022. The full range of requirements for the Prime
Market have now been released, comprising issues
raised in the revised code and the TSE’s listing criteria.
In light of this, we asked CFOs which requirements
they expect will be difficult to meet for a transition to
the Prime Market.
46 percent of CFOs expect “enhancing the quality
and quantity of disclosures regarding the impacts ofclimate change” to be difficult. The second highest
response was “none in particular” at 23 percent, withlarge companies having a higher response rate—this is atrend similar to that for addressing new issues raised in
the Revised Corporate Governance Code.
Many companies in industries vulnerable to theeffects of climate change have already begun analyzing
the impacts of climate change and explaining them toexternal stakeholders.

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Meanwhile, we believe many companies in otherindustries will only start working on the analysis anddisclosure of climate-related impacts because of thePrime Market requirement. This is consistent with thehigh number of CEOs who responded that they arefacing increasing demands for reporting on ESG issues
in the KPMG 2021 CEO Outlook.
Climate change is expected to have a significant
impact on business in general, and on financial
systems in particular. This is why initiatives such as
TCFD are progressing on a global scale, and there isstrong demand for companies to disclose their climate
related strategy. The revised Corporate Governance
Code reflects this trend. Companies that have alreadystarted to analyze and disclose the impacts of climatechange will also be expected to further improve boththe quantity and quality of disclosures to meet global
standards that will become increasingly stringent. The
board needs to keep up with relevant information in atimely manner, and have broad and in-depth discussions
concerning the potential impacts of climate change
on corporate value and how to address them in themedium to long term.

KPMG’s Specialist Insights
R i s k Ma n a g e me n t© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

33

KPMG Japan CFO Survey 2021

Risk Management

Developing a risk
management system capableof dealing with changing
sustainability issues

Are your risk management activities
designed and executed in association withkey sustainability issues? (Single choice)

Companies withannual revenue of
JPY 100 billion or less

Other 5%

69%

54%

41%
They areassociated

They are not
sufﬁciently
associatedKeisuke Adachi
Partner,
KPMG Consulting

34

Despite organizations and activities dedicated to risk
management now being common, management often
voice concerns that their risk management may be
becoming a dead letter, and that they may not be having
the appropriate discussions about risks that are actuallyimportant to the company.

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Such concerns are growing stronger amid the current
trend of sustainability. There is a growing need to view
key sustainability issues as a risk management agenda,
and integrate them into the PDCA of respective risk
management activities.
We asked CFOs whether they associate risk
management with sustainability issues, to whichmore than half responded that the association was
not sufficient. This trend was particularly distinct forcompanies with revenues of JPY100 billion or less,indicating that responses to sustainability issues and thematurity level of a company’s risk management activities
vary depending on company or business size.
By industry, a lack of sufficient association appears
to be more prevalent in the Automotive and Electronics
industries, which face the significant changes anduncertainties in the business environment. This makes it
difficult for companies to keep up with rapid changes inenvironmental and social issues and to link them to theirrisk management, which usually involves identifying andaddressing key risks on an annual basis.
As the importance of addressing sustainability issues
grows, companies will need to reexamine their risk
management framework and ensure that dynamic
and emerging sustainability risks are integrated into
their management decision-making through risk
management system.

Survey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

Sustainability risks that are of particular concern
for business operations (Multiple choices)

Increase in disasters
due to climate change

60%

Delays indecarbonization efforts

54%

Violation of laws
and compliance

47%

Environmental pollution/
destruction of nature/
biodiversity

30%

Human rights
violations

11%

Tax issues

6%

None in particular

4%

Other

3%

Business
Strategy

Investment Strategy
andCorporate Funding

Corporate
Governance

Risk
Management

Tax

Comprehensive
ReportingAccounting and
Finance

Keeping up to date with changing sustainability risks
Sustainability management encompasses a wide
range of topics which continue to evolve in responseto changing social concerns. We asked CFOs to sharesustainability risks which were of particular concern for
their business operations.
Three concerns stood out in particular: An “increasein disasters due to climate change,” “delays indecarbonization efforts,” and “violation of laws
and compliance.”
Concerns about violating laws and compliance areexpressed regardless of company size or industry. This
reflects the overall awareness of code of conduct andlegal compliance that is now ingrained among CFOs andother management in Japanese companies.
While human rights violation is a topic that garners
growing attention, the number of companies that chose
this as a concern fell short of our predictions. The
response rate was relatively high from companies in© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

the consumer goods and retail industries. This suggeststhat efforts to address human rights issues have thus
far been limited to industries with a high sensitivity
to brands and consumer awareness. We expect
concerns regarding human rights issues will increase,including in the B2B manufacturing industry, in line with
developments in sustainability initiatives throughout
entire supply chains.
We expect concerns will also likely increase regarding
tax governance for preventing tax issues, as well as
biodiversity, particularly becoming increasingly importantamong environmental issues.
To promote sustainability management, companies
need to be sensitive to their business environment andsocial concerns while identifying risks associated withkey sustainability issues and aligning their understanding
risks with that of their stakeholders.

KPMG Japan CFO Survey 2021

35

KPMG Japan CFO Survey 2021

Risk Management

Initiatives related to the risk management
system that are particularly necessary
for SX (Multiple choice)Collaboration between or
integration of sustainability
department and risk
management department

48%

Addressing newsustainability risks
Developing a global
management system forsustainability risks

35%

Strengthening thecompliance system

33%

Clarifying the sustainability
risks owner

32%

Enhancing risk reports
to the board of directors

24%

Reﬂecting sustainability
themes in internal audits

23%

Other

36

41%

1%

Continuously upgrading risk management system is the key to sustainability management
To promote sustainability management, companies
need to establish a robust group-wide risk
management system capable of responding to various
risks that continue to evolve and expand. We asked
CFOs which initiatives are most important for their risk
management system.
The survey found that various issues are broadly
recognized. Large companies in particular have ahigh interest in strengthening and reorganizing theirsystems in a way that enables a group-wide response
to sustainability issues on a global basis. Interests
included collaboration between or integration of
their sustainability department and risk management
department, and building a global management systemcapable of responding to sustainability risks.
Only a small number of companies chose “reflecting
sustainability themes in internal audits” as an interest.
This may be because initiatives aimed to addressing
sustainability issues are currently work in progress,
front office (first-line) and corporate office (second-line)in the companies are still in the process of assessing
policies and specific measures. As the maturity
level of sustainability initiatives increases and group-© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

wide initiatives are implemented, internal audits, ormonitoring by an independent department, will be
required to evaluate the accuracy and appropriatenessof a company’s sustainability information, as well as theeffectiveness of its initiatives and operating systems.
Developing a risk management system is only the
first step. Companies will need to continue upgrading
their system to increase its effectiveness and facilitate
corporate decision-making according to each stage ofsustainability management.

Survey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

Business
Strategy

Investment Strategy
andCorporate Funding

Corporate
Governance

Risk
Management

Tax

Comprehensive
ReportingAccounting and
Finance

Se c tor I ns i ghts

Kazuya Kimura

Junichi Kurihara

Industrial Manufacturing Director,
KPMG Japan

Head of Life Sciences,
KPMG JapanThe manufacturing sector has concerns about delays indecarbonization initiatives

The life sciences sector focuses on a robust
compliance system and BCP

As sustainability risk in business operations, 73 percent of CFOs in the
manufacturing sector responded that they have concerns regarding a delay indecarbonization efforts, a higher percentage than the 54 percent overall. Companies
in the manufacturing sector have reason to be more sensitive to decarbonization risk
than in other sectors—any decarbonization delays in their manufacturing process could
result in the exclusion of their company from the supply chain as they would not be
deemed an appropriate business partner.
An increasing number of companies in the manufacturing sector not only view
decarbonization as a risk but also as an opportunity for growth by announcing
environmental goals for 2030 as a global commitment. Steady implementation of suchdecarbonization efforts requires management to provide clear CO2 emission reduction
targets and initiatives. Companies also need to integrate tools and infrastructure
into their business management process to visualize group-wide CO2 emissions andaccurately measure the achievement of CO2 reduction targets.
Another important initiative is to carry out a fundamental review of the company’sbusiness portfolio, and concentrate the company's management resources on
businesses with low CO2 emissions.

Life science companies have had a close association with the S (social) in ESG, given
their social mission of curing diseases, sustaining life, and improving quality of life. The
survey found that 63 percent of CFOs in the life sciences sector associate sustainability
issues with risk management, compared to 41 percent overall. Against a backdrop of
legal violations by generic drug companies and supply chain disruptions amid COVID-19,
this result reflects an industry need to strengthen risk management systems for social
issues including compliance and a stable supply chain.
In fact, more companies cited “violation of laws and compliance” as a concern forbusiness operations than in other industries. This response was especially notable
among medium-sized pharmaceutical companies, and medical device manufacturers
and wholesalers. 66 percent also cited “strengthening the compliance system” (33percent overall) as a particularly necessary risk management initiative for promoting SX.
Another industry characteristic is a trend toward focusing on the supply side as a risk
management initiative. 94 percent (54 percent overall) of companies in the life sciences
sector cited “supply chain disruption in the event of an unforeseen situation (BCP)” asa concern that may impact their business strategy. Companies are expected to reducethe dependence of their API supply system on other countries amid the COVID-19
pandemic, and shift to a system that ensures stable supplies.

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

37

KPMG Japan CFO Survey 2021

Risk Management
Se c tor I ns i ghts

Takuji Yamamoto
Financial Services Sector
Director,
KPMG Japan

Progressing with the integrated management of sustainability risk amidpressure from financial authorities
In the financial sector, the number of companies integrating sustainability strategies
into their risk management was higher than in other industries. A high percentage also
cited “violation of laws and compliance” as a relevant risk, which may reflect the public
nature of financial institutions.
Financial authorities focus on climate change as an ESG risk that impacts corporate
activities. For example, the Network of Central Banks and Supervisors for Greening the
Financial System (NGFS) has expressed its expectation for companies to integrate climatechange risk into their existing risk management framework linked to business strategies.
The FSA’s FY2021 Financial Administration Policy also states its plans to identify issues in
the utilization of scenario analysis based on a quantitative understanding of climate risk
by banks when providing loans, and to clarify points requiring monitoring to ensure risk
management related to climate change. Financial institutions are expected to promote
specific actions to meet the expectations of their stakeholders both in Japan and overseas.
Private financial institutions and institutional investors have been proactively expanding
their investments in the form of sustainable finance. Their risk management awarenessand actions as represented in financing trends may have a greater impact on the overall
economic and social system.

38© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG’s Specialist Insights
Ta x© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

39

KPMG Japan CFO Survey 2021

Tax

Responding to increasing
expectations byaddressing tax governanceas a sustainability issue

Akihiro Miura

Japan’s tax governance measures lag behindthose of global companies
There has been a tendency for companies to minimize
and optimize tax costs in order to maximize shareholder
value, especially overseas. However, the BEPS (Base
Erosion and Profit Shifting) Action Plan discussed at theOECD recently imposed restrictions on the excessive
minimization of tax costs. Managing and controlling tax
is becoming increasingly difficult in line with the growing
complexity of tax policies, organizational structures andtransactions of companies. At the same time, there is aheightened need for tax governance in response to theincreasing scrutiny of national tax authorities.
Global ESG rating agencies are also assessing tax
strategies and the payment status of income taxes byregion and country as well as the disclosure of effective
tax rates, suggesting that tax governance is recognized
as a sustainability issue.
Against this backdrop, we asked CFOs what theirstatus was regarding the establishment of tax policies
and standards and monitoring of tax information.
A comparison of results with the Global Tax
Department Benchmarking Survey conducted by KPMGInternational in 2018 reveals that there has been little
progress in the establishment and disclosure of tax

Partner,
KPMG Tax Corporation
Survey conducted by KPMG International (2018)*
Global Tax Department Benchmarking40© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Does your company have tax policies andstandards applying to risk tolerance and tax
judgments that are disclosed? (Single choice)Tax policies andstandards are
established and disclosed

15%
9% 39 1376%

Tax policies andstandards are establishedbut for internal use only

Tax policies andstandards are
not established2018
48
Survey conducted by KPMGInternational (2018)*

policies in Japan. An underlying factor for this is probably
the fact that Japanese companies in general have notpursued overly aggressive tax positions, and there
was therefore no urgency in actively pushing for theestablishment and disclosure of tax policies. However,
the increasing worldwide movement toward requiring
companies to appropriately handle tax payments andestablish and disclose their tax policies may lead to aheightened need for such polices in the future.

Executive
Summary

SurveyMethodology

KPMG’sSpecialist Insights

Which statement best describes the status
of initiatives for visualizing your groupcompanies’ tax information? (Single choice)
75% among companies
with revenues of
JPY 3 trillion or more

Other 5%

19%

24%

34%

17%

Implemented monitoring measures which include
overseas subsidiaries
Implemented monitoring measures which include
domestic subsidiaries only
While interested, no initiatives yet started
No plans to implement initiatives

Business
Strategy

Investment Strategy
andCorporate Funding

Corporate
Governance

Risk
Management

Tax

Comprehensive
ReportingAccounting and
FinanceStrengthening tax governance by visualizing tax information
There is a heightened risk of unexpected tax penalties
and other tax liabilities for group companies: BEPS 2.0,
a new framework for digital economy taxation, has been
under consideration for a few years led by the OECD; aminimum global corporate tax rate is being promoted;
and there is a possibility of stricter tax inspections in
response to various countries undertaking aggressive
fiscal stimulus as COVID-19 measures. Under suchcircumstances, the visualization of tax informationof group companies is effective for enhancing tax
governance, and we asked CFOs about where theystand in this respect. 24 percent responded that they
are implementing monitoring measures that include
overseas subsidiaries. Among larger group companies
that are more progressive in their overseas businesses,
this response was given by a much higher 75 percent.
While the survey found that larger companies witha higher exposure to overseas tax risks are making
progress in the visualization and monitoring of tax
information of their group companies, little progresshas been made overall. It is important for companies
to meet the growing expectations of strengthening
their tax governance at a global level in order to achievesustainable growth.

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

The co-operative compliance program is available
in Japan as a way to address tax governance issues,
whereby a taxpayer with a certain level of tax
governance enters into an agreement with the tax
authorities to voluntarily disclose any unclear tax issues
on a timely basis. This allows authorities to express theirviews on tax issues in a timely manner, and adjust thefrequency and depth of inspections accordingly. As aresult, taxpayers are able to reduce man-hours required
for tax inspections, while promoting tax transparency.

KPMG Japan CFO Survey 2021

41

KPMG Japan CFO Survey 2021

Tax

Consideration of tax measures or tax impacts inline with SX to date or in the future (Multiple choice)None currently andno plans in the future

41%

Future tax impacts,
including carbon tax

34%

Tax incentives for investment

33%

Impact of reviewing the roleof individual group companies
on transfer pricing

13%

Impact of reviewing supply chainsfrom the viewpoint of transfer pricing,customs duty and indirect taxes

11%

Other

2%
Companies for which
SX is a top priority

Future tax impacts,
including carbon tax
Tax incentives for investment

42

53%

Companies prioritizing the SX agenda are ahead in addressing and considering tax measures
Tax impacts of future changes in supply chain need to be considered carefully

To encourage companies toward carbon neutrality,
some countries are introducing tax incentives
for environmental investments such as theimplementation of production facilities that contributeto decarbonization. At the same time, carbon taxes andthe Carbon Border Adjustment Mechanism are being
introduced and considered, and companies are being
urged to review their supply chain, including changing
their production bases.
Despite these moves, 41 percent of CFOs responded
that they have not considered and have no plans
to consider relevant tax measures and tax impacts.
However, a higher percentage of companies that
position SX as a top priority responded that they are
considering the future impacts of introducing a tax relief
for environmental investments and a carbon tax, and are
actively working on tax measures as they progress with
their SX agenda.

44%© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

11 percent of companies plan to consider the impactof reviewing their supply chain on transfer pricing,customs duties, and indirect taxes. However, fromthe viewpoint of decarbonization, a change in supply
chain will lead to CO2 emissions resulting from energy
consumption associated with transporting products
and parts, as well as additional costs incurred due tothe Carbon Border Adjustment Mechanism. A new
supply chain will therefore probably lean toward “local
production for local consumption,” and differ significantly
from the supply chain models currently used bymultinational companies. A change in supply chain
will force significant changes in the design of transfer
pricing and customs duties imposed. These changes
are expected to become an important issue, especiallyfor companies in the manufacturing industry, and will
require careful preparation.

KPMG’s Specialist Insights
C o mp r e h e n s i ve Re p o r t i n g
including non-financial information© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

43

KPMG Japan CFO Survey 2021

Comprehensive Reporting

including non-financial information

Committing tosustainability information
as a factor that impacts
corporate value

Effective from the fiscal year ended March 31,
2020, an enhancement of disclosures of narrative
information is required in Annual Securities Reports. At
the same time, the importance of sustainability issues
is increasing. While climate change risk and othersustainability issues are expected to have a significant
impact on corporate value over the medium to longterm, they do not necessarily have an immediate impact
on corporate profits, making it difficult to translate thedegree of risk and the nature of corporate response intomonetary values. Information on sustainability issues
therefore tends to be reported as part of non-financial
information, rather than financial information.
On the other hand, with the increasing importance ofsustainability issues, questions are being raised about
why information on sustainability issues is not includedin financial information. How to integrate sustainability
information into financial information and provide
consistent reporting as a whole has become a major
theme in corporate reporting.

Challenges in preparing a comprehensive reportin which sustainability information is associatedwith financial information (Multiple choice)
Selecting sustainabilityrelated metrics that should bemonitored and setting goals

50%

Connecting sustainability measureswith corporate value creation

47%

Establishing a process and systemfor collecting necessary
non-ﬁnancial information
Lack of proactive discussions
regarding sustainability issues
at the board of director level

32%

Integrating sustainability
issues into the strategy

31%

Additional administrative
workload required

29%

There is no uniﬁed standard
for sustainability reporting

28%

Other

Tomokazu Sekiguchi
Sustainable Value Japan
Partner,
KPMG AZSA LLC

44© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

40%

2%

Survey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

Discussions at the management and board level arelacking despite an urgent need for practical measures
The survey questioned the challenges CFOs face inthe preparation of a comprehensive report which relates
sustainability information to financial information. In
response, 50 percent chose “selecting sustainabilityrelated metrics that should be monitored and setting
goals,” 47 percent chose “connecting sustainability
measures with corporate value creation,” and 40 percent
chose “establishing a process and system for collecting
necessary non-financial information.” This reflects anurgent need for many companies to implement practicalmeasures to enable their disclosure of quantitative
non-financial information. Against this background,some Japanese companies have recently adopted the
SASB standards, which identify industry-specific metrics(indices) for the disclosure of sustainability information.
As challenges cited by CFOs, 32 percent also chose“lack of proactive discussions regarding sustainability
issues at the board level” followed by “integrating
material sustainability issues in the strategy” at 31
percent. This indicates that while many companies
are promoting practical measures to enhance theirdisclosure of non-financial information, the management
and board of companies need to improve theirunderstanding of sustainability issues, and develop
strategies based on a prioritization of actions.

Business
Strategy

Investment Strategy
andCorporate Funding

Corporate
Governance

What is the current level of CFO involvementin sustainability reporting? (Single choice)

5% 14%

36%

27%
18%

Sufﬁcient involvement to date
Fair amount of involvement to date and expect future
involvement to increase
Fair amount of involvement to date and expect future
involvement to remain the same
None currently but plan to increase future involvement

Risk
Management

Tax

Comprehensive
ReportingAccounting and
FinanceCommitting to sustainability information as afactor that impacts corporate value
What is the level of CFO commitment to addressing
sustainability issues? Specifically, regarding theirinvolvement in sustainability reporting, the top
response was 36 percent, where CFOs have nocurrent involvement, but plan to increase involvementin the future. Only 14 percent responded that they
have sufficient involvement to date, while 5 percent
responded that they have no current involvement,
and do not plan to increase involvement in the
future. The results indicate that while there is limited
CFO involvement in sustainability reporting in many
companies, they are aware of the need to increase
their involvement.
Sustainability is now a top management issue,
and it is only natural that CFOs increase theirinvolvement in sustainability reporting given their roleof corporate reporting. Without CFO involvement,
the efforts of management and employees toenhance corporate value may not be appropriately
communicated to stakeholders.

None currently and do not expect future involvement© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

45

KPMG Japan CFO Survey 2021

Comprehensive Reporting

including non-financial information

CFO views on using assurance services
for improving the reliability of sustainability
information (Single choice)

12%
48%
40%

How companies should increase the reliability of sustainability information in the futureWith the heightened importance of sustainability
issues, sustainability information is being consideredin the decision-making of many organizations—more
investors are integrating sustainability and financial
information to make investment decisions. Individual
consumers are also now questioning how companies
are contributing to sustainability issues.
All such decisions are based on information
disclosed by companies. The reliability of informationis therefore crucial, and there is a growing need forproviding assurance regarding non-financial informationin the same way as for financial information. In fact,
the European Commission’s draft for a Corporate
Sustainability Reporting Directive published in April 2021
proposes expanding the scope of sustainability reporting
and requiring independent third-party assurance ofreported information.

Would consider using for the entire report, including
non-ﬁnancial information
Would consider using some non-ﬁnancial indicators,
such as CO2 emissions
No need for assurance services46© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

In light of this, we asked CFOs about their views
on potential demand for assurance services regarding
their information disclosures. 48 percent responded
that there is no need for assurance services, while 40
percent showed interest in third-party assurance forsome non-financial indicators such as CO2 emissions,and 12 percent for the entire report including nonfinancial information. While we cannot say at present
that a majority of respondents feel the need for thirdparty assurance regarding their non-financial information,
many more CFOs appear to have a keen interest in
improving the reliability of their information compared tojust a few years ago.

Survey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

Business
Strategy

Investment Strategy
andCorporate Funding

Corporate
Governance

Risk
Management

Tax

Comprehensive
ReportingAccounting and
Finance

Se c tor I ns i ghts

Atsushi Nagata
Automotive Partner,
KPMG Japan

SX initiatives and timely disclosures are key management issues that affectbusiness continuity
The automotive industry is facing an urgent need to address sustainability issues
including carbon neutrality, and the survey results also show that awareness of relevant
corporate reporting is on the rise.
The survey found many challenges for companies in the automotive industry: they are
lagging behind in the integration of sustainability issues into their strategies to enhance
corporate value; proactive discussions at the board level are lacking; and while they
have established metrics for monitoring, they do not have any standards to integratethem into the reporting. As for improving reliability of sustainability information, CFOs
have a relatively high level of awareness regarding the use of assurance services.
Companies need to place sustainability reporting on the board agenda again andactively engage in conversations with stakeholders.
The challenges mentioned above, if not addressed, may impact corporate funding andstock prices, which will have a direct impact on business operations. Companies in theautomotive industry need to formulate medium-term management plans by backcasting
based on a long-term vision, while considering sustainability management initiatives
and timely disclosures as a pillar of management issues for their business continuity.

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

47

KPMG Japan CFO Survey 2021

Spotlight 3
Response to first year following introduction of KAMs
(Key Audit Matters)
Responses were mixed, with both positive views that KAMs allowed adeeper understanding of financial risks, and negative views that it took aconsiderable amount of time
Key Audit Matters (KAMs) are required to be included in the auditor’s report fromthe audit of financial statements for the fiscal year ended March 31, 2021. KAMs areintended to shed light on audits, referred to as a black box by some stakeholders,
and to enhance the informational value of the auditor’s report. There are also
expectations for KAMs to stimulate communication between users of financial
statements and management, and among management, Kansayaku, and auditors.
In this survey, about half of CFOs shared the view that KAMs have led to a deeper
understanding of the company’s financial risks and to deeper communication withthe auditor and Kansayaku or Audit Committee members. Many CFOs also felt
however that it led to more man-hours resulting from meetings with the auditor.
Concerns have been voiced that KAMs will become meaningless in the audit offinancial statements for the fiscal year ending March 31, 2022—with this being thesecond year of application, KAMs statements are expected to be routine and carriedover from the first year.
KAMs are meant to serve as a catalyst for enhancing audit quality by stimulating
communication with stakeholders on key audit matters, and it is a medium forenabling external parties to understand the value of audits. Therefore, there are
expectations for the communication of KAMs descriptions to become more effective.

48

What effects did KAMs introduction haveon your company? (Multiple choice)
Deepened our awareness ofthe company’s ﬁnancial risks

49%
57%

Deeper communication with the auditor
Deeper communication with the Kansayaku
or Audit Committee members

23%

More detailed evaluation of
the quality of audit services

11%

Stricter approach by the auditor to
the transparency of information disclosures

12%

More hours required due tomeetings with the auditor

30%

More hours required due tointernal coordination including
those with management

9%

Other

7%

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG’s Specialist Insights
Ac c o u n t i n g a n d F i n a n c e© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

49

KPMG Japan CFO Survey 2021

Accounting and FinanceTransforming theaccounting and financedepartment in response toexpanding CFO roles

Noboru Katori
Director,
KPMG AZSA LLC

50

Developing a new process and system thatencourages decision-making from a mid- andlong-term perspective
As ESG investment becomes common to investors,
companies are facing the management issue ofenhancing corporate value by taking ESG into account.
Companies are required to break away from the current
management which focusing on financial informationand move to new management that integrates ESG
factors into their strategies and decision-making, which
are then appropriately evaluated.
We asked CFOs which areas they consider to be ofgreater importance for promoting SX. The top response
was corporate strategy, followed by others related or
required to long-term growth of the company.
To enhance the corporate value in the medium andlong term, accounting and finance department will face
the challenge of providing a basis for judgment andinsights to management by obtaining relevant nonfinancial information for assessing sustainability issues
and setting goals, and developing business strategies(forexample, reflecting ESG factors in business evaluation
indicators). CFOs will need to establish rules for
identifying, obtaining, quantifying, and visualizing nonfinancial information necessary for long-term (or midand long-term) decision-making, and the operational© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

CFO roles that are considered
to be of greater importance inpromoting SX (Multiple choice)Corporate strategy

45%

Business plan

39%

Finance strategy

38%
33%

IR
Risk management

31%

Business strategy

31%

Investment andloan decisions

23%

Budget management

10%

IT strategy andplanning

9%Internal audit andinternal control

4%

Other

2%

Survey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

process and IT system infrastructure necessary for
implementing these rules.
The response rate for “investment and loan decisions”
was lower than expected, at 23 percent. This may be
because this role is considered important in current
role regardless of the promotion of SX. Decarbonization
initiatives, such as investments in improving energy
efficiency, will require a large amount of capital. In
order for companies to make appropriate decisions
from the perspective of sustainability, mechanisms andinformation that encourage investment decisions by not
only a short payback period, but also mid- and long-term
impacts on the environment and society.
CFOs also view strengthening investor relations
activities as important (33 percent). Investors wantcompanies to integrate non-financial information,such as climate change risk, into their current financial
disclosures, and companies need to improve theirreporting and engage in more conversations withinvestors as their finance strategy. Moreover, theawareness of employees also needs to change inorder to achieve SX. Enhancing the disclosure of nonfinancial information will encourage all employees tobecome more aware of this challenge and transform theorganization which employees think themselves and act.

Business
Strategy

Investment Strategy
andCorporate Funding

Corporate
Governance

Risk
Management

Comprehensive
ReportingTax

Accounting and
Finance

Spotlight 4
Current CFO roles

Comparison of CFO roles to 2019
survey results
CFO roles are expanding, mainly in theareas of “IT strategy and planning” and“risk management”
CFO roles now include “IT strategy andplanning” and “risk management” for morecompanies, with responses increasing by 15
percent to 37 percent, and by 13 percent to 41
percent, respectively, when compared to the
CFO survey conducted in 2019.
More CFOs are responding to the DX
agenda with the aim of fundamentallytransforming their business using digitaltechnologies, and effectively applying thisnew approach to management.
As a background to the increase in “riskmanagement,” CFOs now recognize the extent
to which non-financial information, including
ESG factors, impacts corporate value, andthat they are now responsible for the risk
management of non-financial information in
addition to financial information.

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

95%
96%

Finance strategy

79%
80%

Budgetmanagement

71%
62%

IR
Investment andloan decisions

61%
61%

Business plan

59%
48%

Corporate
strategy
Riskmanagement
IT strategy andplanning

42%
40%
28%
22%

37%

Business strategy

26%
17%

Internal audit andinternal control

25%
27%

Other

3%
8%

41%

2021
2020

KPMG Japan CFO Survey 2021

51

KPMG Japan CFO Survey 2021

Accounting and FinanceAn urgent need for reviewing the structure and capability of the accounting and finance department
The accounting and finance department needs to do
more than just improve the current accounting capabilitiesof their members to achieve SX—they also need to beable to measure, evaluate, and analyze sustainability
information. The structure, business processes and IT
systems of the department should be able to adapt to theenvironmental changes resulting from SX.
We asked CFOs how prepared their accounting andfinance department is for promoting SX. 7 percent
responded that their current structure and capability
was sufficient, while 77 percent feel the need for some
improvements. 16 percent have yet to assess thismatter. The survey also found that 59 percent have yet
to begin improvement initiatives, including those thathave yet to assess their readiness.
Companies listed on the Prime Market in Japan, which
is being created by a new segmentation of the TSE
market scheduled for April 2022, will be expected todisclose the impacts of climate change on their businessperformance. There is also discussion, led by the FSA,
on the subject of potentially expanding information
disclosures in Securities Reports.

52

It is time for action. Companies need to understandand visualize how sustainability issues including climatechange affect them, and implement solutions based on
clear objectives and targets. The accounting and financedepartment of a company needs to have the functionof collecting, quantifying, analyzing and reporting nonfinancial information related to sustainability in addition
to the existing financial information.

Statement reflecting the current accounting and finance department structure
and capability in terms of promoting SX in the future (Single choice)

16%

7%

26%
Some improvement
needed, andimprovements
being implemented

10%

33%
Some improvement
needed, but improvements
not yet implemented

8%© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Current structure and capability is sufﬁcient
Some improvement needed,
and improvements being implemented
Drastic improvement needed,
and improvements being implemented
Some improvement needed,
but improvements not yet implemented
Drastic improvement needed,
but improvements not yet implemented
Have not evaluatedSurvey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

Investment Strategy
andCorporate Funding

Business
Strategy

Areas of improvement that have been or are being addressedin the accounting and finance department for promoting SX
Awareness-raising among department
membersinvestments in DX
Identifying and securing necessary talent

35%
25%

Reviewing the organization and segregation of duties

18%

Maintaining operation rules and regulations

21%
24%

Redesigning the business process27%

Maintaining IT systems

32%

Not yet started
Other

2%

Future talent and skills required for the accounting
and finance department (Multiple choice)
64%

Management perspective

44%

Communication and conﬂict resolution skills

39%

Data analysis skills

33%

Logical thinking skills

27%

Understanding and utilization of non-ﬁnancial information
Knowledge regarding sustainability

25%

Ability to identify emerging risks

24%
21%

IT literacy
Leadership
Other

14%
1%

Corporate
Governance

Risk
Management

Tax

Comprehensive
ReportingAccounting and
Finance

Fostering talent capable of thinking and acting from a management perspective
When we asked CFOs about improvement initiatives they implemented in theiraccounting and finance department, many had a focus on talent, citing “raisingawareness among department members” and “identifying and securing necessary
talent” as areas of improvement.
Raising awareness for the promotion of SX does not happen overnight—in addition
to the disclosure of non-financial information, it involves transforming decision-making
standards and rules themselves, for example, by introducing an internal carbon pricing
system for formulating strategies, evaluating investments, and managing risk. Another major
challenge will be fostering and recruiting talent capable of handling the expansive role of theaccounting and finance department.
As the roles of the accounting and finance department change, so do the skills requiredof their talent. The accounting and finance department needs to understand the company’ssustainability issues and provide relevant non-financial information to management in order
to secure an active involvement in the mid- and long-term decision-making for SX.
Many CFOs were of the view that “a management perspective,” “communication andconflict resolution skills” and “data analysis skills” are necessary in the future, all skills that
apply universally to accounting and finance departments.
Our survey confirmed the importance of talent who are capable of analyzing andidentifying issues for the company’s sustainable growth from a long-term and strategic
perspective, coming up with solutions together and persuading relevant parties incollaboration with other departments, and leading the implementation of solutions throughcollecting, evaluating, and providing information, including non-financial information.
However, fostering talent with a management perspective is not easy to do based on thecurrent training method, and companies should consider utilizing an intrapreneurship or
hiring people with management experience from outside.

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

53

KPMG Japan CFO Survey 2021

Accounting and Finance

Promoting DX to streamline existing operations andaddressing expanding roles

Areas that require digitalization for the future
SX promotion (Multiple choice)Accounting and
Finance operations

54%
41%

Budget management
IT strategy and planning

33%

Business strategy

29%

Business plan

26%
19%

Risk management
Internal audit andinternal control

15%

Finance strategy

14%

Corporate strategy

14%

Investment andloan decisions

54

11%

IR

5%

Other

1%

In addition to SX, digital transformation (DX) is also important for sophisticating
the management system and enhancing corporate value. Digital technologies are
essential for promoting SX, which involves the collection, management and analysis
of sustainability information. They may be applied, for example, to a wide range
of operations including the collection of information on CO2 emissions and ESG
information within a supply chain, and KPI monitoring related to ESG.
Regarding areas requiring digital technologies for promoting SX, the top responses
were “accounting and finance operations” and “budget management.” These differ
from the CFO roles that are considered to be of greater importance, which were
“corporate strategy,” “business plan” and “finance strategy.”
CFOs now need to support the CEO’s decision-making by providing an analysis of
information relating to impacts on the environment and society based on a new levelof awareness. In order to do this, CFOs should utilize digital solutions to make accountclosing and budget control—which involve an aggregation of past data—more efficient,and allocate resources to areas that will expand due to SX.
DX is also expected to be employed to advantage in areas related to mid- andlong-term decision-making including “corporate strategy,” “management plan” and“business strategy.” While CFOs still appear cautious about using digital technologies
in these areas, the ability to identify sustainability risk including climate change risk andsupply chain risk and reflect them in strategic decision-making in a timely manner, will
make it possible to achieve greater sustainability for their business.

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Survey
Methodology

Executive
Summary

KPMG’sSpecialist Insights

Business
Strategy

Investment Strategy
andCorporate Funding

Corporate
Governance

Risk
Management

Tax

Comprehensive
ReportingAccounting and
Finance

Se c tor In s i ghts

Shoichi Yamamoto

Takeshi Kurata

Consumer & Retail Partner,
KPMG Japan

Head of Transport, Logistics and Leisure
KPMG Japan

Using digital technologies to promote business transformation and support
business strategy

Companies need to shift from a wait-and-see mindset to getting ahead of
the game with SX in order to stay competitive

As areas requiring digitalization more than ever before in order to achieve SX, 40
percent of CFOs in the consumer goods and retail industries cited “business strategy,”a higher percentage than the overall 29 percent. In particular, food and beveragecompanies are more conscious of changes in customer needs and behaviors driven bydigitalization. As a result, they are increasingly aware of the need to reduce food loss
and develop biodegradable packaging and plant-based alternatives.
Digital technologies are already being applied. For example, there has been a move
to make demand forecasting more sophisticated across the value chain by using digitalsolutions to minimize “mottainai,” or wastefulness. This includes food wastage instores, excess inventory at the manufacturing and distribution stages and excessiveorders of raw materials associated with these factors. The new market environment
has also facilitated the provision of information and two-way communication withcustomers via digital means. This has led to a growing demand for consumers to beable to make purchases through digital channels in line with the information madeavailable to them. Companies in this industry need to develop their business strategies
in response to such changes in the business environment.

The transport and logistics industry has suffered some of the biggest blows of
COVID-19. Inbound demand that drove growth has evaporated, and with teleworking
becoming the new norm, it is difficult to expect a recovery in demand. Many industries
in this sector require large capital investments, and a finance strategy for business
continuity is imperative. In the transport and logistics industry, CFOs responding that
“corporate strategy” is a role for which they are currently responsible was 15 percent
lower than the overall response, while “finance strategy” was 14 percent higher as arole which will become more important in the future.
Meanwhile, there is a stronger tendency to take a wait-and-see approach to themuch-discussed topic of SX than in other industries, in terms of its positioning as amanagement issue, and the implementation of specific initiatives and tax measures.
This may be because there is uncertainty about demand recovery, and therefore theimmediate focus is on strengthening the financial aspect. In addition, this sector
accounts for a smaller share of total CO2 emissions in Japan compared to energy andmanufacturing and is therefore associated more with energy use than CO2 emission.
A rise in demand for clean energy and a surge in carbon taxes may make it difficult
for supplies to be secured at expected prices in the future. Companies in this sector
will need to come up with effective business strategies while monitoring the trends ofleading companies in their industry in order to stay competitive.

© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

55

KPMG Japan CFO Survey 2021

Contact us
Business Strategy

Investment Strategy andCorporate Funding

Risk Management

Comprehensive Reporting

Kaoru Mano

Daisuke Tsuchiya

Keisuke Adachi

Tomokazu Sekiguchi

Partner, KPMG FAS
kaoru.mano@jp.kpmg.com

Director, KPMG AZSA LLC
daisuke.tsuchiya@jp.kpmg.com

Partner, KPMG Consulting
keisuke.adachi@jp.kpmg.com

Partner, KPMG AZSA LLC
tomokazu.sekiguchi@jp.kpmg.com

Automotive

Financial Services

Industrial Manufacturing

Automotive

Koichi Iguchi

Yuta Tanaka

Kazuya Kimura

Atsuchi Nagata

Partner, KPMG FAS
koichi.iguchi@jp.kpmg.com

Director, KPMG AZSA LLC
yuta.tanaka@jp.kpmg.com

Director, KPMG AZSA LLC
kazuya.kimura@jp.kpmg.com

Partner, KPMG AZSA LLC
atsushi.nagata@jp.kpmg.com

Consumer & Retail

Energy & InfrastructureLife Sciences

Yuji Ito

Seiichi Ono

Junichi KuriharaPartner, KPMG FAS
yuji.ito@jp.kpmg.com

Director, KPMG FAS
seiichi.ono@jp.kpmg.com

Partner, KPMG Consulting
junichi.kurihara@jp.kpmg.com

Technology, Media &Telecommunications

Satoshi Wada
Director, KPMG Consulting
satoshi.wada@jp.kpmg.com

Finance

Takuji Yamamoto
Corporate GovernanceDirector, KPMG AZSA LLC
takuji.yamamoto@jp.kpmg.com

Tax

Akihiro Miura
Partner, KPMG Tax Corporation
akihiro.miura@jp.kpmg.com

56

Noboru Katori
Director, KPMG AZSA LLC
noboru.katori@jp.kpmg.com

Consumer & Retail

Shouichi Yamamoto
Partner, KPMG AZSA LLC
shouichi.yamamoto@jp.kpmg.com

Tomoko Waku
Partner, KPMG AZSA LLC
tomoko.waku@jp.kpmg.com

Accounting and Finance© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG globalorganization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Transport,
Logistics & LeisureTakeshi Kurata
Principal, KPMG Consulting
takeshi.kurata@jp.kpmg.com

Keeping in touch(Illustrative disclosures/disclosure checklists)

KPMG Japan CFO Survey 2019 (Japanese version only)
Dilemma of CFOs in Japan and Pressing challenges
https://assets.kpmg/content/dam/kpmg/jp/pdf/2019/jp-cfo-survey-2019.pdf

KPMG Japan CFO Survey 2020
COVID-19 (Special Edition)
https://assets.kpmg/content/dam/kpmg/jp/pdf/2021/jp-en-cfo-survey2021.pdf

KPMG 2021CEO Outlook
Plugged-in, people-first, purpose-led.
https://home.kpmg/xx/en/home/insights/2021/08/kpmg-2021-ceo-outlook.html© 2021 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants
Law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved.

KPMG Japan CFO Survey 2021

Contact us
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1-9-7 Otemachi, Chiyoda-ku
Tokyo, 100-8172
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© 2022 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants
Law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International
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