Over the past twenty years, the integration of ESG (environmental, social and governance) factors into investment decisions has spread widely across global capital markets. Governance reforms and the development of stewardship codes in many jurisdictions have stimulated dialogue between companies and investors, helping to enhance market transparency and efficiency. In addition, the emergence of international disclosure standards such as the Task Force on Climate-related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB) has strengthened the information infrastructure that underpins ESG, creating an environment in which investors can more appropriately assess companies’ medium- to long-term profitability and risks.
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This article was originally published by Nikkei Financial on December 8th 2025. The translation was provided by the publisher.