Japanese firms have long lagged behind their Western peers on gender equality. A U.S. crackdown on diversity may give them a chance to shine.
The spotlight is falling on Japan’s companies as U.S. President Donald Trump’s move to roll back measures emphasizing diversity, equality and inclusion looks set to divert environmental, social and governance (ESG) funds to alternative destinations. That’s the cue for the Asian nation after its companies boosted the number of female directors faster than their global peers last year.
Firms that prioritize governance reform are drawing funds such as Boston Common Asset Management as concern about U.S. tariffs sparks a hunt for assets that can withstand the rising global volatility. An MSCI index that has a bigger weighting on shares of Japanese firms committed to gender equality has outperformed the Nikkei stock average by over 10 percentage points in the last two years through Thursday.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.