S&P/JPX Carbon Efficient Index

Our Sustainability

JPX promotes sustainability initiatives on several fronts. Besides formulating Japan's Corporate Governance Code, offering ESG-related ETFs, it has launched an infrastructure fund market and a new platform for green and social bonds. In December 2017, JPX joined the UN's Sustainable Stock Exchanges (SSE) initiative, a network of exchanges around the globe that aim to promote sustainable investment and increase corporate transparency and long-term performance in terms of ESG matters. In order to promote ESG initiatives throughout the corporate group, in July 2018, JPX established a Sustainability Committee that directly reports to the Group CEO.
In line with JPX's sustainability initiatives, JPX also develops and calculates ESG-related indices. On September 25, 2018, JPX released a brand-new index "S&P/JPX Carbon Efficient Index" focusing on environmental information.
For more information on JPX's sustainability initiatives, please see the following page.


ESG investment

In Japan, as part of the growth strategy under the Japan Revitalization Strategy, Japan's Stewardship Code and Japan's Corporate Governance Code were released in February 2014 and June 2015 respectively. The principles in the Codes should be applied in a manner suited to each individual investor or company's specific conditions and situations. In Japan's Stewardship Code, relevant factors are set out that may be considered by institutional investors when monitoring a company in order to increase the medium- to long-term value of investee companies, including "risks arising from social and environmental matters" in addition to "governance" at the investee companies.
Against this backdrop, the Government Pension Investment Fund (GPIF), with the largest pension assets in the world, signed the United Nations backed Principles for Responsible Investment (PRI) in September 2015. This has acted in Japan as one catalyst for increased awareness and interest in incorporating information related to the Environment (E), Social (S) and Governance (G) into investment, or so called "ESG investment".

Source:Ministry of the Environment Government of Japan(On the Release of the ESG Working Group Report)

S&P/JPX Carbon Efficient Index

Index Objective

The S&P/JPX Carbon Efficient is designed to measure the performance of companies in the Tokyo Stock Price Index (TOPIX), (the “underlying index”), while overweighting or underweighting those companies that have lower or higher levels of carbon emissions per unit of revenue.

Constituent Selection and Weighting

Constituent Weighting Table

For more information, please visit the S&P website

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