Kurita Water is a leading provider of water treatment solutions, specialising in ultra-pure water, chemical wastewater treatment, and other water-related services. The company focuses on sustainability and innovation, offering comprehensive solutions that help industries optimise water usage and reduce environmental impact.
Investor objective: Supporting high quality management extends the company’s overall positive impact and long-term success.
Engagement objectives:
- Strengthen board independence, including consideration of an independent lead director.
- Improve gender diversity at board and senior management levels.
- Encourage broader governance enhancements to support long-term value creation and positive impact.
Activity
We initiated dialogue through a formal letter outlining its voting rationale and governance expectations following the company’s 2025 AGM. Kurita responded in July 2025 with a detailed explanation of its governance structure and diversity approach.
Outcome: Milestone 2 - the company shared detailed information on governance practices and diversity initiatives, demonstrating responsiveness to investor concerns.
Key points included:
- Transition to a nominating committee structure in 2023, with Independent External Directors now comprising 50% of the Board.
- Justification for an internal Chairperson, citing Mr Kadota’s experience as former president and his ability to oversee strategic transformation during a pivotal phase.
- Commitment to consider increasing external director representation in response to investor expectations.
- Gender diversity progress: 25% of Board members are female, with a broader target for women, foreign nationals, and mid-career hires to represent 40% of executive officers by FY2027.
Kurita also reaffirmed its five-year Medium-Term Management Plan, focused on creating social value and driving innovation, aligning governance improvements with strategic goals.
While Kurita has not committed to an independent Chairperson or majority external directors, it acknowledged these expectations and signalled openness to future changes. Progress on gender diversity is tangible, supported by a clear target for broader representation in senior roles.
The engagement remains open, with us continuing to monitor further steps toward board independence, delivery of diversity targets by FY2027, Alignment of governance practices with international best standards.
Overall assessment
Kurita has taken meaningful steps to strengthen governance and diversity, balancing investor expectations with its strategic transformation. Continued dialogue will focus on ensuring these commitments translate into measurable outcomes that support long-term value creation.
