From San Francisco: An American woman is revolutionizing diversity in Japanese corporate boardrooms (Forbes)

A recent Forbes interview features Tracy Gopal, CEO of Third Arrow Strategies and founder of the Japan Board Diversity Network (JBDN), discussing the critical role of diversity in corporate Japan. As a longtime advocate for stronger governance and inclusive board leadership, Tracy highlights why Japan must continue its efforts to diversify boardrooms, despite growing anti-DEI sentiment in the U.S.

The State of Board Diversity in Japan

Japan’s Corporate Governance Code, revised in 2021, set ambitious targets for gender diversity on corporate boards. Companies listed on the Tokyo Stock Exchange Prime Market must appoint at least one female director by 2025 and strive for 30% female board representation by 2030. However, Japan still lags behind Western markets, where women already hold 30-40% of board seats.

Tracy emphasizes that diversity isn’t just about representation—it’s a driver of economic growth. Companies with diverse leadership:

• Make better strategic decisions by incorporating varied perspectives.

• Improve risk management and governance effectiveness.

• Attract top global talent and enhance investor confidence.

Building a Global Talent Pipeline for Japanese Boards

Through JBDN, Tracy has cultivated a network of senior female executives and board members spanning Japan, the U.S., Europe, and beyond. The initiative provides:

• Board training and corporate governance education to prepare women for leadership roles.

• A global talent pipeline connecting highly skilled Japanese and non-Japanese professionals with board opportunities in Japan.

• Support for companies seeking diverse, globally minded directors to strengthen governance.

Tracy’s work has demonstrated that Japanese companies must look beyond domestic talent pools to remain globally competitive. Companies like Hitachi have already embraced this approach, leveraging technology, virtual meetings, and AI-powered translation tools to appoint directors from around the world.

Why Board Diversity Matters Now More Than Ever

Despite opposition to DEI initiatives in the U.S., Japan has strong economic incentives to pursue diversity. The country’s aging workforce, talent shortages, and growing international competition require corporate boards to adopt broader perspectives and global expertise.

As Tracy notes in Forbes, companies that embrace diversity in gender, skills, nationality, and experience will thrive in an increasingly interconnected world. Japan’s ability to attract top-tier global talent to its boardrooms will play a pivotal role in shaping the country’s corporate future.

Read the full article on Forbes.com