Japan Markets ViewESG Investment Survey 2025: What is the Desirable Approach to Disclosures?

 

QUICK ESG Research Center compiled the results of the “QUICK ESG Investment Survey 2025” in December 2025. This seventh annual survey, conducted from August 18 to October 10, 2025, targeted 276 Japan-based institutions that have either adopted Japan’s Stewardship Code or are signatories to the United Nations Principles for Responsible Investment (PRI). Responses were received from 69 institutions, including 43 asset managers and 26 asset owners. The highlight of this survey was the “desirable approach to disclosures.” We covered this topic and more in this monthly research report.

 

Executive Summary

1. Regarding the desirable approach to disclosures for corporate sustainability information, 53% (response selection rate, which represents the ratio of the number of responses to the number of valid responses for each question, same hereinafter) of respondents favored a “dual-report approach.” This involves consolidating disclosures centered on the Annual Securities Report (Statutory filing) and the Integrated Report (Voluntary disclosure). This result exceeded the 32% who favored a “single-report approach” by consolidating disclosures into the Annual Securities Report.
2. The investment methodology most commonly implemented was “ESG integration,” which incorporates ESG factors into investment analysis and decision-making. The second most common methodology was “Engagement,” which refers to constructive engagement, or purposeful dialogue between investors and companies, followed by “Exercise of voting rights” in third place. The ranking of these top three methodologies has remained unchanged for the third consecutive year.
3. The response “Our management resources and the target companies’ responses were sufficient, and we could carry it out with all the target companies” accounted for 45%. This figure is 13 points higher than the 2024 Survey. Among the engagement themes prioritized, the percentage for “Human capital” rose from 63% to 68%. Meanwhile, the rate for “Diversity and inclusion (D&I)” fell from 63% to 52%.
4. For the first time in two years, some respondents indicated a plan to “reduce the proportion of ESG investments in five years.” One of the three institutions that gave this response cited “Decline in client interest in ESG investments” as the reason. Considering the responses regarding ESG investment stances and policies, there appears to be a reactionary shift away from the “ESG investment fever” in some areas.

 

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