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Since the introduction of Japan’s Stewardship Code in 2014 and the Corporate Governance Code in 2015, dialogue between investors and Japanese companies has become more common and the governance of many companies has improved. However, many challenges remain and progress in some areas has been slow.

Hyundai Motor has improved its board composition and skill sets, making progress from its historically dominant founding family, and acknowledging minority shareholder interests.

Nissan Motor manufactures and distributes cars and related parts. It also provides financing services. The company manufactures its products in Japan, the US, the UK and many other countries.

Samsung Electronics manufactures a wide range of consumer and industrial electronic equipment and products, such as semiconductors, personal computers, peripherals, monitors, televisions, as well as home appliances, including air conditioners and microwave ovens. The company also produces internet access network systems and telecommunications equipment, including mobile phones.

Samsung Electronics manufactures a wide range of consumer and industrial electronic equipment and products, such as semiconductors, personal computers, peripherals, monitors, televisions, as well as home appliances, including air conditioners and microwave ovens. The company also produces internet access network systems and telecommunications equipment, including mobile phones.

Panasonic is one of the largest manufacturers of electric and electronic products globally. Background At the beginning of our engagement, the company had a large board with 20 directors none of whom was genuinely independent. Eighteen directors were company executives and the other two, while being designated as outsiders, represented financial institutions with which Panasonic has shareholding and business relationships. The board members were also all Japanese men, demonstrating a clear lack of diversity. In addition, the company’s board introduced a takeover defence scheme, a so-called poison pill, and continued to renew it at its discretion without putting it to a shareholder vote. This is despite the fact that most other Japanese companies that have adopted poison pills have sought shareholder approval at their AGMs, although these typically attract a low level of support.

Golden Agri-Resources (GAR) is the world’s second-largest palm oil plantation company with nearly 500,000 hectares – including smallholders – of plantation in Indonesia. It has integrated operations focused on the production of palm-based edible oil and fat. In 2009, the company was accused by Greenpeace and other NGOs of contributing to deforestation and causing damage to biodiversity through operation of its palm oil plantations. This resulted in a number of its customers including Unilever, Nestlé, Kraft and Burger King cancelling their contracts. Although they made up less than 3% of GAR’s revenue, the incident tarnished the company’s reputation. What we did We commenced engagement with GAR in 2009. We focused on the objective of ensuring that all of its palm oil is certified in accordance with the respected Roundtable on Sustainable Palm Oil (RSPO), as well as putting together a credible strategy to address wider sustainability allegations, including the setting of stretching targets.