March 12, 2026

Ambiguous definition of ESG investment leads to misunderstanding

“Are ESG investment assets declining?”
The question has surfaced repeatedly over the past one to two years.
So, what exactly is the definition of ESG investing?

The latest Japanese ESG indices and passive investment report, written in collaboration with SGX

Authored in collaboration with SGX, this quarterly report reviews the development of Japan's sustainability standards, the ESG performance of listed companies in Japan compared to market-specific indices, and the growth of index-linked SGX FTSE Blossom Japan Index Futures.

Key highlights from this quarter’s analysis:

  • ESG investment assets appear to be growing, but the ambiguous and broad definition of ESG may be misleading. It is important that ESG is a key factor in investment assets
  • Both the Blossom Japan and Blossom Sector Relative (SR) indices maintained long-term outperformance relative to their benchmark with strong quarterly performance led by ESG Factors
  • SGX FTSE Blossom Japan Index Futures remain the only active Japan ESG derivatives contract