December 10, 2025

Driving ESG progress in Japan: Improved disclosure and growing investor support

Improved corporate ESG disclosure—combined with strong backing from local investors, asset managers, and service providers—is driving progress and creating opportunities

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

Authored in collaboration with SGX, this 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:

  • Since the FTSE Blossom Japan Index started in 2017, the FTSE ESG Scores of Japanese companies have improved:
    • The number of companies included in the index doubled in 2025
    • Country ESG score ranking has risen from 2021 to 2025
    • The background for rising ESG scores is also improving, creating investment opportunities for global ESG investors.
  • 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

Past quarterly editions

Research and Insights

Research

Driving ESG progress in Japan: Improved disclosure and growing investor support

Our latest edition of the Japanese sustainable investment and futures report will help you better understand and track ESG momentum in Japan.

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Scope 3 conundrum: how materiality filters can sharpen the focus

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Ascending from the plateau? What our global asset owner survey says about sustainable investment

Global asset owners are shifting from principles to pragmatism as sustainable investment adoption remains strong, with rising climate risk concerns and growing ESG integration.
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