External Evaluations and Initiatives

This is an ESG-focused equity index provided by FTSE Russell, a global index provider. This index evaluates companies that demonstrate excellence in the ESG field and is widely used as a benchmark for sustainable investments.

This index is created by Morgan Stanley Capital International (MSCI) in the United States. It is constructed by selecting companies with excellent ESG ratings from the constituents of the parent index (MSCI Japan IMI Index), targeting the top 50% of companies in each industry.

This is one of the ESG equity indices jointly developed by S&P Dow Jones Indices in the United States and Japan Exchange Group (JPX). Using TOPIX, a representative stock index that reflects trends in the Japanese market, as its universe, this index determines the weighting of constituent stocks based on factors such as environmental information disclosure and carbon efficiency (carbon emissions per unit of revenue).

This index is managed by SOMPO Asset Management Co., Ltd., and approximately 300 companies with excellent ESG initiatives have been selected. It features a unique active management approach that combines ESG evaluations with equity value assessments. The index is utilized from a long-term perspective, primarily by pension funds and institutional investors.

The greenhouse gas (GHG) emission reduction target for 2030 has been certified as a Science Based Target (SBT) by the international organization "SBT Initiative" in [Month, Year]. This target is based on scientific evidence aligned with the goals set by the Paris Agreement.

In November 2021, we expressed our support for the final report, "Recommendations of the Task Force on Climate-related Financial Disclosures," published by the Task Force on Climate-related Financial Disclosures (TCFD) in June 2017.

We announced the "Partnership-Building Declaration" in support of the purpose of the "Council for Promoting Partnerships for the Future," whose members include the President of the Japan Business Federation (Keidanren), the Chairman of the Japan Chamber of Commerce and Industry, the President of the Japanese Trade Union Confederation (Rengo), and relevant ministers (Cabinet Office, Ministry of Economy, Trade and Industry, Ministry of Health, Labour and Welfare, Ministry of Agriculture, Forestry and Fisheries, and Ministry of Land, Infrastructure, Transport and Tourism).

We have received an 'A' rating in the MSCI ESG Ratings. MSCI ESG Ratings, provided by the U.S.-based MSCI, analyze how well companies manage ESG-related risks and evaluate them on a seven-grade scale, ranging from the highest rating of 'AAA' to the lowest rating of 'CCC.' This rating serves as a globally recognized benchmark for ESG investments.

In the CDP assessment for fiscal year 2024, we received a rating of 'B' for Climate Change and 'B-' for Water Security. CDP is an international non-profit organization that evaluates and discloses the strategies and initiatives of companies and local governments regarding 'Climate Change,' 'Forests,' and 'Water Security.' These initiatives are assessed on an eight-grade scale: A, A-, B, B-, C, C-, D, and D-.

In the 'Nikkei SDGs Management Survey: Smart Work Management Edition,' we were awarded a 3-star rating for fiscal year 2024. This survey evaluates leading companies that aim to maximize corporate value by fully utilizing human resources, accelerating investments in human capital, fostering innovation, and improving productivity. Companies are rated on a five-star scale based on three key factors: 'Human Resource Utilization,' 'Human Capital Investment,' and 'Technology Utilization.'

We were certified as a 'DX-Certified Company' under the Ministry of Economy, Trade and Industry's (METI) DX Certification System as of June 1, 2022. This certification recognizes our efforts to enhance and create new value for our customers by optimizing the entire group through initiatives such as the standardization of IT platforms and the development of a more employee-friendly environment through the use of digital technology.