In the face of stagnating economic development in Japan, the Japanese government has focused in part on the role of women in the workforce. Women are a historically underutilized resource in Japan, and studies have indicated that their greater participation and advancement in the workforce could have substantial benefits for the Japanese economy. The Japanese government has set out explicit goals to increase women’s participation and promotion in the business world.
Institutional investors may have a vested interest in supporting women’s empowerment for economic and social reasons. Companies that encourage women’s workforce participation may be better able to withstand the challenges of a shrinking workforce by having access to a larger talent pool, and a stronger economy overall could benefit long-term portfolio returns. In addition, many observers, including the United Nations, view empowering women as a social good.
Source : MSCI