Companies must go further than historical financial performance and look to “integrated reporting” as a means to help investors fully understand risks and opportunities, according to the chief executive of the International Corporate Governance Network (ICGN).
Kerrie Waring, the ICGN’s CEO, will make the integrated reporting call to open the ICGN-IIRC (International Integrated Reporting Council) conference in Tokyo next week.
The event will also celebrate the country’s governance reforms under Japan’s revitalisation strategy, while also exploring the creation of long-term value and how it contributes to building sustainable economies.
Waring will warn that “it is time to look beyond historical financial performance and also look at ‘integrated reporting’, which is vital in helping investors understand a company’s risks, opportunities and prospects for the future.”
The conference, hosted by the Japanese Institute of Certified Public Accountants (JICPA), alongside the Tokyo Stock Exchange, will see more than 300 representatives from global investors, corporates and professional advisors gather in Japan to explore corporate governance issues.
Governance and stewardship reforms
This latest gathering is particularly poignant as Japan has been deeply involved in reforming governance and stewardship since the country’s prime minister, Shinzo Abe, came to power in 2012.
Speakers will include finance minister Takao Ochi; Aiko Sekine, chairman and president of the JICPA; and Osamu Nagayama, the chief executive of Chugai Pharmaceutical, and chairman of Sony.
The conference will look at how management reporting can aid long-term value creation, enhancing long-term company value in Japan, how governance and reporting can support value creation, and how investors can promote ESG factors.
There will also be exploration of gender diversity in Japanese companies and how stewardship and investor engagement can improve.
Kerrie Waring will say that organisations engaged in promoting good governance are on a journey to help “ensure that future generations can thrive”.
“This is not without its challenges and we face a formidable task in meeting the UN’s Sustainable Development Goals—17 goals to transform our world which aim to ‘end poverty, protect the planet, and ensure prosperity for all,” she will say.
The ICGN-IIRC conference runs from 28 February to 1 March at the Mandarin Oriental Hotel, Tokyo.