Kao Corporation has been selected to receive the 2019 Award for Excellence in Corporate Disclosure in the Cosmetics and Personal Care Industry, the highest award in the industry category, by the Securities Analysts Association of Japan (SAAJ). The Cosmetics and Personal Care Industry was added to the categories screened for the award, making Kao the first corporation to receive this distinction.
The Securities Analysts Association of Japan has established objective review criteria to determine the relative excellence of companies' disclosure based on its quality, quantity, timing, and other factors. In fiscal 2019, a total of 276 companies in 17 industries were screened for the award.
The review criteria consist of five areas: 1) management's involvement on investor relations, the function of an investor relations department, and basic stance of the company's investor relations, 2) disclosure in briefings, interviews, presentation materials, etc., 3) efforts toward fair disclosure, 4) disclosure related to corporate governance, and 5) voluntary disclosure conforming to industry circumstances.
Kao was evaluated the highest on its delivery of meaningful messages to investors about its future management policy, and the integration of financial and non-financial information and release of integrated reports leading to mid- to long-term enhancement in corporate value. Kao also received high evaluation in general for items 3) to 5) above, leading to the 2019 Award for Excellence.
The Kao Group is making a major shift towards ESG (Environmental, Social and Governance)–driven management as a new challenge to build a foundation enabling sustainable growth in 2025, 2030, and beyond. Kao announced its ESG strategy, the Kirei Lifestyle Plan, earlier in the year and is fully undertaking activities to implement this plan. Kao will proactively and fairly disclose information and deepen dialogue with a wide range of stakeholders including investors and analysts to build understanding for its activities.