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 12, 2024
Otsuka Holdings Co., Ltd. (Head office: Chiyoda-ku, Tokyo, Japan; President, Representative Director, and CEO: Tatsuo Higuchi) announced today that it has been selected for the second consecutive year as a constituent of the FTSE4Good Index Series, the FTSE Blossom Japan Index, and the FTSE Blossom Japan Sector Relative Index, which are all ESG (environment, social, and governance) investment indexes.
These investment indexes, created by the global index and data provider FTSE Russell, are designed to measure the performance of companies that demonstrate 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 inclusion in the FTSE Blossom Japan Index and the FTSE Blossom Japan Sector Relative Index, which measure the performance of Japanese companies with high ESG ratings, as criteria for its investment management.
The Otsuka group is promoting sustainability management that creates new markets based on social issues and simultaneously generates social value. This year, with the formulation of the 4th Medium-Term Management Plan, we had reviewed the materiality, which are key issues we prioritize and address, and identified the following four items: contributing to the health and well-being of people around the world, developing human capital at good work environments, creating more sustainable future with our business partners, and reducing our environmental impact. As a group, we are all working together to advance these initiatives. At the same time, we have introduced the FTSE’s ESG score as one of our performance-linked indicators for director remuneration with the aim of further promoting sustainable growth for our group.
Going forward, the Otsuka group will proactively pursue these efforts with the aim of achieving sustainable growth for ourselves as well as a sustainable society, in accordance with our corporate philosophy: “Otsuka-people creating new products for better health worldwide.”
Reference: https://www.otsuka.com/en/csr/hd_activity/evaluation.html