Abstract
This paper focuses on the quantity and quality of key performance indicators (KPIs) in ESG
activities, which collectively refer to environmental, social, and governance (ESG) activities, and
examines the content and comparability of KPIs from a balanced perspective. The research on KPIs
has so far focused mainly on non-financial research, and only a few studies have focused on ESGrelated
KPIs. In this paper, we examine KPIs in the ESG disclosure information of companies included
in the Nikkei 225 and JPX Nikkei Index 400. S (Society) were fewer than those of E (Environment)
and G (Governance). In terms of KPI disclosure rates, only G (Governance) and S (Society) had
disclosure rates of 90% or more, while E (Environment) had no items with disclosure rates of 90%
or more, and the rates were concentrated in the 30% to 40% range. In terms of KPI quality, about
90% of the E (environment) items were on a proportional scale, with only a few on a nominal scale.
On the other hand, about 20% of S (Society) and G (Governance) items were nominal. The number
of items in S (Society) remained unchanged. The changes in disclosure rates over time showed large
increases and decreases in 2018 for E (environment), 2018 and 2022 for S (society), and 2016 and 2020
for G (governance). From these results, it was confirmed that the disclosure of KPIs in ESG disclosure
information is not only a matter of corporate disclosure efforts, but also of time-consuming items such
as the establishment of relationships and systems in the supply chain and the recruitment and training
of human resources.
