In recent years, the importance of "human capital management" – which aims to unlock talent potential and enhance corporate value – has grown significantly. Starting in 2023, human capital information disclosure became mandatory for listed companies, and even unlisted firms are accelerating the alignment of their management strategies with talent strategies. However, many companies, while understanding the benefits of human capital management, struggle to objectively assess their current state and identify appropriate approaches.
Against this backdrop, DENTSU SOKEN INC. has launched " Rajinban," a human capital disclosure diagnostic tool. This two-part article features interviews with DENTSU SOKEN INC.'s Yukio Nakayama and Shungo Higashi, covering the development background and features of Rajinban, as well as the approaches companies should take toward human capital management today.
Human Capital: A New Value Standard for Companies
Q. Starting with the fiscal year ending March 2023, disclosure of human capital information became mandatory as part of sustainability reporting for listed companies required to submit securities reports. Could you share the current state of disclosure and its challenges?
Higashi: Human capital is the source from which companies generate value. Disclosing human capital information externally reveals how a company invests in its people and what management risks or challenges it faces regarding its workforce. Amidst a declining birthrate, aging population, and worsening labor shortages, the disclosed information highlights a company's value and future prospects—such as what initiatives it is taking for its valuable workforce and whether it is successfully developing successors.
While mandatory disclosure requires companies to provide basic information, I believe there remains a challenge in whether this information is truly valuable to investors. If companies fail to disclose the information investors seek, it becomes difficult to compete with leading Western firms, potentially leading to capital withdrawal. To avoid such risks, it is crucial to take a comprehensive view of human capital management, both domestically and internationally, and consider what measures are necessary and how to communicate them effectively.
DENTSU SOKEN INC. | Mr. Shungo Higashi
Nakayama: The amount of human capital information disclosed in securities reports varies significantly by company. In Europe and the US, some companies issue separate Human Capital Reports, disclosing information over dozens of pages, but in Japan, few companies have taken such extensive steps yet.The guidelines for human capital disclosure are based on the international standard ISO 30414. However, the International Organization for Standardization (ISO) itself originated in Europe. In Europe and the US, where people of diverse races and religions work together, diversity management is deeply rooted, and they are ahead of Japan in human capital management.
Q. What risks and challenges do Japanese companies currently face regarding human capital?
Nakayama: First, recruitment and turnover are major issues. Specifically, risks and challenges include failing to attract skilled talent through mid-career hiring, employees leaving shortly after joining, and veteran employees with over ten years of experience retiring, causing valuable know-how to flow out to other companies.
Higashi: Successor shortages are also a major risk and challenge. No matter how excellent the talent, the company's management situation is heavily influenced by the president. How will cultivated technologies be passed on? Is successor development happening? Demonstrating corporate sustainability also provides reassurance for investors.
Q. Are there other human capital metrics investors focus on?
Nakayama: Employee engagement is said to correlate with labor productivity. Therefore, investors also pay attention to engagement-related data such as paid leave utilization rates and telework implementation rates. For example, currently, if a company has many "AI talent" who can effectively utilize "AI," investors tend to perceive that "this company will grow." The key point is to disclose information that makes investors feel the "future."
Mr. Yukio Nakayama, DENTSU SOKEN INC.
"Rojinban" is a corporate health checkup
Q. In February 2025, DENTSU SOKEN INC. launched the "Rojinpan," a human capital disclosure diagnostic tool. What kind of tool is this?
Higashi: If I had to describe "Rojinpan" in one phrase, it's a corporate health checkup.Just as a comprehensive health check uses various tests to assess health and recommends lifestyle improvements based on the results, "Rojinban" diagnoses a company's human capital management based on the international standard ISO 30414. It visualizes how well the company is meeting the information disclosure expectations of investors and stakeholders. Furthermore, it is a tool that can also assess risks related to governance and other areas.
Few Japanese companies currently disclose information based on ISO 30414.Using the ISO standard as a foundation not only ensures the comprehensiveness of human capital disclosures but also allows verification of compliance with global disclosure standards, potentially attracting further investment from global investors. Conversely, if internal efforts are insufficient, it helps identify risks and leads to measures for strengthening governance. In this way, by analyzing disclosure maturity and risks, and providing solutions tailored to corporate risks, we have established a framework to support human capital management.
Q. How does "Rojinpan" analyze human capital management status?
Higashi: We establish checkpoints based on the indicators defined by ISO 30414. By answering these, we visualize compliance with ISO 30414 and the maturity of human capital disclosure through matrices and graphs.
First, we check whether necessary data is being collected, how that data is being utilized, and whether it is disclosed internally and externally. The "Risk Value and Maturity Matrix" highlights high-risk items in the upper-right quadrant, clearly showing the challenges a company should address now. For companies struggling with "understanding the importance of human capital management but not knowing where to start," it also serves to prioritize talent strategy initiatives.
Sample image of analysis results
Higashi: A key feature is that we provide not only risk and maturity analysis but also solutions to drive subsequent actions, such as support for obtaining ISO 30414 certification and risk management assistance.
Q. What makes the "Human Capital Compass" unique, and how does it facilitate next steps?
Higashi: The unique feature of the Human Capital Compass is that it not only visualizes human capital information but also analyzes latent risks and derives the next steps.
DENTSU SOKEN INC. has long provided a wide range of HR solutions, including the total HR solution "HUMAnalytics," HR strategy consulting services, and HR domain solutions. For example, if "Rojinban" identifies risks in the labor field, it can integrate with the unified HCM solution " POSITIVE." If employee literacy needs improvement in the security field, it can connect with the information security education platform " KnowBe4."Conversely, if many areas are strong, we can collaborate with Dentsu Inc. to support corporate branding and internal/external communications. Our strength lies in providing one-stop support through the entire Dentsu network.
During the Age of Exploration, charts and compasses guided ships. "Rojinban" is the compass guiding companies navigating human capital management toward their destination. The first step is assessment using "Rojinban" to understand your company's current position and challenges. This should prove highly effective even for SMEs where human capital disclosure is not yet mandatory. In Part 2, we'll explore case studies of "Rojinban" implementation and future service expansions.
After working on database and system design at an SIer, gained experience in business transformation and system consulting as a consultant. Engaged in integrated audits and developing ISO 30414-related business at a foreign certification body. Possesses deep expertise in disclosure practices, focusing on human capital disclosure with added branding elements, as well as cybersecurity disclosure. Also serves concurrently in the Economic Security Research Sector, initiating efforts on economic security and proactive cyber defense.
Engaged in AML/CFT and compliance-related duties at a financial institution. Subsequently involved in planning and operating group-wide risk management at an IT company. In the current role, incorporates an ERM (Enterprise Risk Management) perspective to support governance and human capital disclosure. This involves comprehensively, holistically, and strategically grasping, evaluating, and optimizing corporate risks from an organization-wide viewpoint to maximize value.
