JPX Market Innovation & Research and Nikkei are collaborating to develop a groundbreaking stock index that emphasizes human capital strategy. This innovative index aims to spotlight companies excelling in managing their workforce as a strategic asset. Scheduled for launch in the middle of this year, the index is part of a broader initiative to enhance transparency and accountability in corporate human resource practices across Japan.
The new index will feature companies listed on the stock exchange that demonstrate superior human capital strategies. This move aligns with the Japanese government's recent mandate requiring listed companies to disclose their human capital strategies, effective from 2023. Companies must include detailed information on their human resource development policies, female manager ratios, and gender pay gaps in their securities reports.
To ensure the index is comprehensive and reflective of market needs, JPX and Nikkei plan to seek suggestions from various market participants during its development. This collaborative approach aims to incorporate diverse perspectives and create an index that truly represents firms that prioritize effective human capital management.
In recent years, the Japanese government has intensified efforts to promote transparency in corporate human capital strategies. By mandating disclosures, the government encourages companies to adopt more equitable and effective workforce management practices. The forthcoming index complements these efforts by highlighting firms that lead the way in this aspect.
The joint development of this index by JPX and Nikkei represents a significant market innovation. It underscores the growing importance of human capital management as a critical factor in evaluating company performance. By focusing on this aspect, the index aims to drive better management practices and inspire other companies to follow suit.
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