Selected for four ESG indices for Japanese stocks used by GPIF
Daiwabo Holdings Co., Ltd. is pleased to announce that it has been selected for the first time as a component of the FTSE Blossom Japan Sector Relative Index.
The FTSE Blossom Japan Sector Relative Index is an index built by global index provider FTSE Russell*1. The index reflects the performance of Japanese companies with excellent ESG practices in each sector, and is designed to be sector neutral*2. In order to promote the transition to a low-carbon economy, it includes only companies whose improvement efforts are evaluated by a TPI Management Quality Score*3, particularly regarding companies with high levels of greenhouse gas emissions.
As a result of this selection, we have now been selected as a component in four of the six ESG indices for Japanese stocks adopted by the Government Pension Investment Fund (GPIF), which manages public pension funds in Japan; the FTSE Blossom Japan Sector Relative Index, MSCI Japan Empowering Women (WIN) Select Index, S&P/JPX Carbon Efficient Index, and Morningstar Japan ex-REIT Gender Diversity Tilt Index.
Our Group has positioned ESG as an important issue that is essential to business continuity and growth, and the entire Group is strengthening its efforts. With the aim of becoming a company that can be trusted by stakeholders for a long time to come, we will work to continuously improve our corporate value by conducting business with social issues in mind.
- 1 FTSE Russell (registered trademark of FTSE International Limited and Frank Russell Company) certifies that, as a result of a third-party investigation, Daiwabo Holdings Co., Ltd. has satisfied the requirements for inclusion in the FTSE Blossom Japan Sector Relative Index and has become a constituent of said index. The FTSE Blossom Japan Sector Relative Index is widely used to create and evaluate sustainable investment funds and other financial products.
- 2 Sector neutral: In order to avoid industry bias, constituent stocks are selected in consideration of the industry ratio of the parent index, the FTSE Japan All Cap Index.
- 3 TPI = Transition Pathway Initiative: An assessment of the quality of management of greenhouse gas emissions and the risks and opportunities associated with the transition to low carbon.
- 4 The inclusion of Daiwabo Holdings Co., Ltd. in the MSCI index and the use of MSCI logos, trademarks, service marks, or index names in this release do not constitute sponsorship, warranty, or promotion of Daiwabo Holdings Co., Ltd. by MSCI or its affiliates. MSCI indices are the exclusive property of MSCI. MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.
■FTSE Blossom Japan Sector Relative Index
One of the UK-based global index provider FTSE Russell’s ESG indices, it is composed of Japanese companies with high ESG ratings within their industries.
■MSCI Japan Empowering Women (WIN) Select Index
An ESG index provided by the US-based MSCI Inc. that is constructed based on disclosed information on gender diversity from among the top 700 stocks by market capitalization (MSCI Japan IMI Top 700 Index).
https://www.msci.com/msci-japan-empowering-women-index-jp
■S&P/JPX Carbon Efficient Index
An ESG index developed jointly by the US-based S&P Dow Jones Indices and Japan Exchange Group, Inc. It targets TOPIX constituents, with the weight of each constituent being determined based on the level of carbon efficiency (carbon emissions per unit of sales revenue) and the status of disclosure of environmental information.
https://www.jpx.co.jp/markets/indices/carbon-efficient/index.html
■Morningstar Japan ex-REIT Gender Diversity Tilt Index
This index is for Japanese companies that meet the standards for gender diversity efforts set by the US company Morningstar. It is built using the Dutch company Equileap’s Gender Equality Scorecard evaluation method.