Evaluation by Society
ESG investments are on the rise—that is, when investors not only consider financial analysis in making investment decisions, but also non-financial information related to the environment, society, and governance, in order to conduct investment which promotes companies’ sustainable growth from a mid-to long-term perspective (sustainability). The following showcases some of the high performance evaluations which Sojitz has received from external organizations.
Awards & Commendations
SAM Sustainability Award
Sojitz has been selected for a Silver Class Sustainability Award by USA company S&P Global for three consecutive years.
Since 2004, Swiss company RobecoSAM has assessed the corporate sustainability of roughly 3,000 major companies worldwide, awarding “Gold Class,” “Silver Class,” and “Bronze Class” awards to the best companies in each industry sector. With the acquisition of RobecoSAM’s ESG evaluation business by S&P Global Inc., the assessments are performed by S&P Global as of 2020.
CDP
CDP is a non-profit organization based in London and jointly run by institutional investors. CDP collects data from major companies across the world regarding environmental strategies and countermeasures against greenhouse gases emitted by these companies. CDP then analyzes this data and announces the results each year. Sojitz received a rating of A− (“Leadership level”) with regards to climate change consecutively in 2019 and 2020.
Internet IR Award
Daiwa Investor Relations Co. Ltd. evaluates and grades the standards
by which listed companies disclose information online (IR sites)
each year, granting awards to the top companies. This award is one
of the longest-running awards in Japan and is often upheld as a
benchmark for determining the quality of IR sites. Sojitz has received
the top award for five consecutive years now, coming in 2nd
place overall. (In 2020, Sojitz was one of only seven selected out
of 3,883 nominated companies.)
Nadeshiko Brand
This award, conferred jointly by the Tokyo Stock Exchange and the
Ministry of Economics, Trade, and Industry each year, recognizes
listed companies which excelled at empowering women in the workplace.
Sojitz has been selected as a Nadeshiko Brand company for five
consecutive years since March 2017.
Indexes
The Dow Jones Sustainability Indices (DJSI)
FTSE4Good Index Series and FTSE Blossom Japan Index
For four consecutive years starting in 2018, Sojitz has been selected as a constituent of the FTSE4Good Index Series and the FTSE Blossom Japan Index, which are indices provided by global index provider FTSE Russell*1. These are both widely used by investors, as indices composed of companies which excel in their response to environmental, social, and governance (ESG) issues. The FTSE Blossom Japan Index has also been selected by the Government Pension Investment Fund (GPIF) as an index for ESG investment.
*1 Fully-owned subsidiary of the London Stock
Exchange. Creates and manages indexes, as well as provides related
financial data on a global scale.
"FTSE Russell confirms that Sojitz
has been independently assessed according to the index criteria,
and has satisfied the requirements to become a constituent of
the FTSE Blossom Japan Index. Created by the global index and
data provider FTSE Russell, the FTSE Blossom Japan Index is designed
to measure the performance of companies demonstrating strong Environmental,
Social and Governance (ESG) practices. The FTSE Blossom Japan
Index is used by a wide variety of market participants to create
and assess responsible investment funds and other products."
MSCI Japan Empowering Women Index (WIN)
Sojitz has been selected as a constituent of the MSCI Japan Empowering Women Index (WIN) for five consecutive years since 2017. This index was created by U.S. company MSCI Inc. and is another ESG index selected by the GPIF for ESG investment. Index figures are calculated using data disclosed under the Act on Promotion of Women’s Participation and Advancement in the Workplace, with constituents comprised of those companies which earn a high gender diversity score.
The inclusion of Sojitz in any MSCI Index, and
the use of MSCI logos, trademarks, service marks or index names
herein, do not constitute a sponsorship, endorsement or promotion
of Sojitz by MSCI or any of its affiliates. The MSCI indexes are
the exclusive property of MSCI. MSCI and the MSCI index names
and logos are trademarks or service marks of MSCI or its affiliates.
SOMPO Sustainability Index
For nine years running, Sojitz has been a constituent of the SOMPO Sustainability Index, an index set up by Sompo Japan Insurance Inc. The SOMPO Sustainability Index was first established in August 2012, and it is reviewed annually based on Sompo Risk Management Inc.’s Buna-no-Mori (“beech forest”) environmental survey, as well as on the social and governance evaluation conducted as part of the company’s ESG management survey. The Sompo Sustainability Index is used in Sompo Asset Management Co., Ltd.’s Sustainable Management investment product.
What is SOMPO Sustainable Management?
SOMPO Sustainable Management is an ESG (environmental, social, governance) investment product launched by SOMPO Asset Management Co., Ltd. in August 2012. Unlike general active investing in which a fund manager evaluates and selects stocks to invest in, SOMPO Sustainable Management utilizes a buy and hold approach to invest in stocks with strong ESG evaluations from research firms. The weighting of stock holdings is determined based on its own SOMPO Sustainability Index, a proprietary active index composed of approximately 300 companies. Currently, this product is used by several pension funds and institutional investors.