S&P DJI, JPX Launch ESG-Oriented Versions of Japan’s TOPIX 500 Index
Index provider S&P Dow Jones Indices (S&P DJI) and Japan Exchange Group (JPX) announced today the launch of the S&P/JPX 500 ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Score Tilted Index Series, a suite of indices aimed at offering exposure to improved ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. characteristics for Japan’s TOPIX 500.
The new index series offers a range of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. score tilting, with various levels of constituent weight changes away from the parent index weightings based on the desired level of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. score improvement.
S&P DJI stated that at each rebalancing, the indices’ constituents’ weights are tilted away from free-float market capitalization in a way that companies with higher or lower S&P DJI ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. scores are over or under-weighted, respectively. The indices employ scaling factors that, when applied to the weighting scheme provide magnitudes of tilting, with higher scaling factors implying that the tilted index would have higher S&P DJI ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. score improvement, as well as greater differences in constituent weights relative to the parent index.
Calculated over the past ten years, the index series on average achieves between 12% to 40% S&P DJI ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. score improvement with 0.5% to 1.5% annual tracking error against the TOPIX 500.
The S&P DJI ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Scores are derived from the S&P Global ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Scores and built from the S&P Global Corporate Sustainability Assessment. Additionally, the indices exclude those who are poorly aligned with the UN Global Compact principles, or those who are involved in ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. controversies.
Kiyota Akira, CEO of JPX said:
“JPX joined the Sustainable Stock Exchanges (SSE) initiative in December 2017. In recent years, JPX has supported listed companies in their voluntary efforts to disclose ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. information, including through publication of the Practical Handbook for ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Disclosure and the launch of the JPX ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Knowledge Hub in 2020. Under these circumstances, we are delighted to collaborate with S&P Dow Jones Indices to further promote ESG-focused activities through the provision of a new composite ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. index series.”
According to S&P DJI, the new index series addresses the need from individual and institutional investors to enhance ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. exposure while maintaining a broad and diversified universe to invest in, and also helps encourage Japanese companies to improve the tracking of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. performance against industry peers.
Dan Draper, CEO of S&P Dow Jones Indices said:
“S&P Dow Jones Indices is proud of its longstanding collaboration with the Japan Exchange Group. We are privileged to continue evolving and expanding our partnership with the exchange to respond to the growing awareness and appetite amongst global investors to incorporate environmentalEnvironmental criteria consider how a company performs as a steward of nature., socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. and governanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. principles in their decision-making processes. This exciting development underscores our joint commitment to help promote and advance sustainability in financial markets in Japan, Asia and globally from the lens of independent indexing.”
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