[Feature] New Common Sense of Corporate Value

Apple's market capitalization exceeded $3 trillion, and it became a hot topic. 98% of it is "non-financial capital" that is not stated in financial statements. Global institutional investors are now more interested in non-financial information such as climate change measures and human capital, and their importance in stock price formation has become extremely important. Audit firms that check the content of disclosure are also being forced to undergo drastic changes. How should we deal with the times when it is not possible to evaluate corporate value only with financial statements? Illustrated with plenty of case studies.

From the reporter in charge

My name is Hayato Umegaki and I was in charge of the special feature "New Common Sense of Corporate Value." When asked, "What impact will your company's business have if the global temperature rises by 4 degrees above pre-industrial levels by 2100?" do you From April onwards, the 1,841 companies listed on the newly established Prime Market will be required to answer questions like the one at the beginning. Certainly, in the last six months or so, I've been asked a lot by corporate executives and people in charge of IR that I've met through interviews, etc. I was. TCFD is an international framework for information disclosure on governance and risk management related to climate change. I'm ashamed to say that I don't know much myself, so I started creating the special feature by researching keywords related to TCFD one by one. However, it was an unexpected keyword that came up many times during the interviews with experts and government agencies that are promoting the creation of systems. It is a "business strategy". At first glance, the term may appear to have little to do with climate change, but it is not. Under the premise that climate change is no longer inevitable, companies are required to formulate long-term management strategies for the future and disclose the risks and profit opportunities that emerge in the process. In the second half of the special feature, we followed up on the seismic changes in the CPA industry. Due to repeated system changes and tightening of regulations, the burden on the site has increased. There is an accelerating tendency for auditee companies to move from major audit firms to second-tier firms and small and medium-sized firms. In addition, we also posted anonymous round-table discussions of corporate disclosure managers and certified public accountants, packed with the latest trends in corporate disclosure and the accounting industry. Please take a look at it. In the second half of the special feature, we followed up on the seismic changes in the CPA industry. Due to repeated system changes and tightening of regulations, the burden on the site has increased. There is an accelerating tendency for auditee companies to move from major audit firms to second-tier firms and small and medium-sized firms. In addition, we also posted anonymous round-table discussions of corporate disclosure managers and certified public accountants, packed with the latest trends in corporate disclosure and the accounting industry. Please take a look at it.

Reporter in charge: Hayato Umegaki In charge of the securities industry. Born in Hyogo prefecture. Spent junior high and high school years in Thailand and China before returning to Japan in 2014. Graduated from the Faculty of Economics, Kyoto University. When he was a student, he acted behind the scenes as a member of the school festival executive committee alongside the photography club. On days off, she checks out new products at bookstores and electronics stores. The manga I've been into lately is "The Marriage of Arata Natsume".

Contents

Feature New Common Sense of Corporate Value Part 1 Non-financial capital determines life and death Apple's "non-financial capital" is about 30 times that of the Sony Group [Special Interview] Hitotsubashi University CFO Education Research Center Director Kunio Ito "High ROE alone is not enough. No need to wait for TCFD and enhanced disclosure of human capital." Will institutional investors buy it? Enrichment of "Non-Financial Disclosure" is the Key to Dialogue with Shareholders Prime 1841 Companies Approaching Deadline Thoroughly Conquering Super-Difficult "Scenario Analysis" in 4 Steps What's Next for Climate Change! Learn from the examples of leading companies in disclosure that improve corporate value by disclosing human capital! 10 Years from Now: How to Effectively Demonstrate Earning Power Case 1 Pharmaceuticals [Eisai] ESG Value Revealed by the Yanagi Model [Interview] Eisai CFO Ryohei Yanagi “ESG and high profits can be compatible” Case 2 Retailing [MARUI GROUP] Example 3 Foods [Kirin Holdings] Strategic planning on the premise of a decrease in harvest volume Example 4 General trading company [ITOCHU] Strong commitment by top management Example 5 Chemicals [Sumitomo Chemical/Teijin] Impact Circumstances hidden in "minor" Case 6 Banks [three megabanks] Is it true that if disclosure is frequent due to external pressure on shareholder proposals, management will become short-term oriented? Quarterly Disclosure "Abolition" [Disclosure Manager's Honest Opinion Magazine Covered Roundtable] Part 2 Client companies outflow from major companies are increasing year by year. The history of corporate audits and the loss of trust that could not see through the window dressing of that large company that could create audit refugees [Original survey Audit fee ranking] Mitsubishi UFJ's largest is just under 5.7 billion yen Sakusa HD has the highest rate of increase [Original survey 4 Work-style reform at a large audit firm] Work streamlining has made great progress, but man-hours have increased, and if the other party is still a "black" executive, it cannot be promoted to partner! Revision of Laws to Solve "Spousal Issues" [A Certified Public Accountant's Anguish Covered Roundtable Discussion] Industry Report Department Stores on Consumption by the Wealthy People Difficult Problems in Revitalizing the Foreign Business Business Speculations of the "New Wealthy People" Inundated with Contemporary Art Deep Report Nakadai South Korea subsequently applied for TPP at a turning point [Interview] How to evaluate South Korea's application for TPP membership Satoshi Okuda, Professor, Institute of Asian Studies, Asia University R&D Dept. Manager Kim Ryo-hui "Participation application is inevitable. The issue is strategic autonomy." New President's Change: Flexibility Required for a New President｜Economic Views｜Transformation of “Elderly People” and Detrimental Effects of Old-age Pensions for Employees｜Katsuhiko Fujimori｜News Topics｜South Korean Presidential Election Shows the Sadness of the Middle-Aged Generation｜Keisuke Fukuda｜Discovery ! Growing Companies｜Management Solutions｜Corporate Quarterly Report Highlights｜Four companies in this issue｜A direct hit to the top｜A direct hit to the top Fujitsu President Takahito Tokita｜Focus Politics｜Farewell to ``Abe-like things'' needed now｜Jiro Yamaguchi｜China Dynamics | Rural Control Progressing with Orders for Food Security | Chisako Masuo | Caixin Opinion&News | | Jorge Castañeda | Inside USA | Battle between the Digital Yuan and the US Dollar | James Schoff | FROM The New York Times | Shrinking Bank of Japan's Balance Sheet | Takahide Kiuchi | Minority Opinions | The Reality of Society | Infection Explosion or Herd Immunity "Small World" is the Key | Masaro Hoshino | Topical Book | ONLINE｜｜From the editorial department｜｜Articles read in last week's issue