Integrating ESG into core Japanese benchmarks

With strong global sustainable investment asset growth, investors are increasingly taking steps to integrate ESG into core investment benchmarks and therefore are looking for those that incorporate ESG philosophy and reflect a wide range of market exposures.

The FTSE Japan Blossom Sector Relative Index uses a sector-relative approach to reduce the deviation from the base index and identify a company’s relative ESG ratings in the business sector. The index also aims to address the climate transition by incorporating climate risk management criteria from the perspective of management quality. FTSE Russell’s index methodology helps incorporate ESG into investment strategies, while using corporate disclosures and transparent methodologies.

You can now read the full whitepaper at the link below