Improvement in ESG practices of Japanese companies

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.

Track ESG Momentum in Japan

Our latest edition of the Japanese sustainable investment and futures report will help you better understand and track ESG momentum in Japan. You will discover how Japanese companies are leading the way in ESG score improvements—outpacing global peers—driven by GPIF’s strategic investments and FTSE Russell’s engagement.

Key highlights from this quarter’s analysis:

• Communication and engagement with FTSE Russell by Japanese companies on the FTSE Russell ESG Scores and FTSE Blossom Japan Index in GPIF’s ESG passive investment, has continued to increase. Average FTSE Russell ESG Scores are more improved compared to other regions
  
• Both Blossom Japan and Blossom SR (Sector Relative) indices reported underperformance relative to their benchmark, the FTSE Japan All Cap Index, for 2025/1-3. This was driven largely by the negative contribution from the ESG factor. Long-term performance however is still stable.
  
• SGX FTSE Blossom Japan Index Futures continue to remain the contract of choice for Japan ESG derivatives, with a market share of 98% (in terms of open interest in USD notional)