Otsuka Holdings Selected as a Constituent of ESG Investment Indexes: FTSE4Good Index Series, FTSE Blossom Japan Index, and FTSE Blossom Japan Sector Relative Index
July 27, 2023
Otsuka Holdings Co., Ltd. (Head office: Chiyoda-ku, Tokyo, Japan; President and Representative Director, CEO: Tatsuo Higuchi) announced today that it has been selected as a constituent of the FTSE4Good Index Series, FTSE Blossom Japan Index, and FTSE Blossom Japan Sector Relative Index, all environmental, social, and governance (ESG) investment indexes. Notably, this is the second consecutive year of Otsuka Holdings’s inclusion in the FTSE Blossom Japan Sector Relative Index.
These investment indexes, created by the global index and data provider FTSE Russell, are designed to measure the performance of companies demonstrating strong ESG practices. They serve as a critical benchmark for investors when considering a company’s commitment to ESG as part of their investment choices. Japan’s Government Pension Investment Fund (GPIF), one of the world’s largest public pension fund management organizations, has adopted the FTSE Blossom Japan Index and the FTSE Blossom Japan Sector Relative Index as criteria for its investment management. Otsuka Holdings has also been selected as a constituent for other ESG investment indexes adopted by GPIF: MSCI Japan Empowering Women Select Index, Morningstar Japan ex-REIT Gender Diversity Tilt Index, and S&P/JPX Carbon Efficient Index.
The Otsuka group identified its material issues as society (health, people, quality in all we do), environment (carbon neutrality, circular economy, water neutrality), and governance in 2019, and is working together as a group to achieve its goals. The Otsuka group will continue to work actively toward its own sustainable growth and the realization of a sustainable society in line with its corporate philosophy, “Otsuka-people creating new products for better health worldwide.”
Reference
The ESG Investment Indexes in which Otsuka Holdings is listed （As of July, 2023）
■FTSE4Good Index Series
(https://www.ftserussell.com/products/indices/ftse4good)
The index series developed by the global index and data provider FTSE Russell in the UK, are designed to measure the performance of companies demonstrating strong ESG practices
■FTSE Blossom Japan Index
(https://www.ftserussell.com/products/indices/blossom-japan)
A comprehensive ESG index of Japanese companies, using the evaluation scheme of the FTSE4Good Japan Index, with stocks with high absolute ESG ratings neutralized in terms of industry weighting.
■FTSE Blossom Japan Sector Relative Index
(https://www.ftserussell.com/products/indices/blossom-japan)
An index is based on FTSE Russell's ESG assessment and also evaluates the management attitude of companies toward climate change risks and opportunities.
■MSCI Japan Empowering Women Index
(https://www.msci.com/msci-japan-empowering-women-index-jp)
An index is developed MSCI in the US, that calculates the gender diversity scores based on information disclosed under the Act on Promotion of Women’s Participation and Advancement in the Workplace and selects companies with higher gender diversity scores from each sector.
■Morningstar Japan ex-REIT Gender Diversity Tilt Index
(https://indexes.morningstar.com/gender-diversity-indexes-jp )
An index developed Morningstar in the US, is composed by the companies that have strong gender diversity policies embedded in their corporate culture and those that ensure equal opportunities to employees, irrespective of their gender.
■iSTOXX MUTB Japan Platinum Career 150 Index
(https://qontigo.com/index/imjppcyn/)
An index developed by Mitsubishi UFJ Trust and Banking Corporation and STOXX is composed by the companies with the highest platinum career score. A platinum career score is calculated for each company by evaluating three aspects of the company: long term view, active learning and social contribution.
■S&P/JPX Carbon Efficient Index
(https://www.spglobal.com/spdji/en/indices/esg/sp-jpx-carbon-efficient-index/)
An index developed by S&P Dow Jones Indexes in the U.S. is based on carbon emissions data from Trucost, one of the pioneers of environmental research companies.