MHI Group pursues ESG and other sustainability-related activities and works to disclose relevant information. Those efforts have led to MHI being recognized in a variety of ways by outside institutions. (As of November 15, 2021)
Status of Inclusion in ESG Indexes (Note)
MHI Group has been highly rated by a number of global ESG assessment organizations, and we have been selected for inclusion in ESG indexes both in and outside Japan.
- “ESG” is an acronym for Environment, Social and Governance. ESG is an investment index that acts as an important investment decision-making factor in judging a company not only in financial terms, but in terms of whether it takes environmental and social issues into consideration.
Dow Jones Sustainability Index (DJSI)
DJSI is a stock price index selected by S&P Dow Jones Indices of the U.S. It is used to assess the sustainability of the world's major companies from economic, environmental and social perspectives. The Asia Pacific Index is selected from among leading companies in the Asia-Pacific region. MHI has been selected for the fifth consecutive year for inclusion in the DJSI Asia Pacific Index.
We have been selected for the third year in a row for inclusion in all of the ESG investment indices used by Japan's Government Pension Investment Fund (GPIF), which is the largest pension fund in the world.
FTSE Blossom Japan Index
The FTSE Blossom Japan Index is a comprehensive index covering all aspects of ESG, offered by FTSE Russell, a wholly owned subsidiary of London Stock Exchange Group that specializes in compiling investment indexes. About 500 companies are selected for inclusion in the FTSE Japan Index universe, which is a weighted average market capitalization index comprised solely of companies in and outside Japan representing strong ESG practices.
MSCI Japan ESG Select Leaders Index
A comprehensive index developed by MSCI of the U.S., the universe of which consists of the top 500 companies by market capitalization from among those comprising the MSCI Japan IMI. This weighted average market capitalization index gives priority to those companies with the highest performance based on MSCI's ESG ratings.
MSCI Japan Empowering Women Index (WIN)
Developed by MSCI of the U.S., the universe of this index consists of the top 500 companies by market capitalization from among those comprising the MSCI Japan IMI. Those companies in the top half with high gender diversity scores for promoting roles for women in their respective industries are selected for inclusion in this index.
S&P/JPX Carbon Efficient Index
This index was developed jointly by S&P Dow Jones Indices and the Tokyo Stock Exchange. Its universe comprises TOPIX, the leading stock price index and barometer of market trends in Japan, and constituent companies are weighted based on their disclosure of environmental information and on carbon efficiency (the level of carbon emissions per unit of revenue).
Sompo Asset Management's Sompo Sustainability Index
The Sompo Sustainability Index is an investment index that draws on environment (E)-related corporate research conducted by Sompo Risk Management Inc. and social (S)- and governance (G)-related corporate research conducted by IntegreX Inc. to generate composite ESG scores. The index comprises companies with above-average ESG performance, as determined through composite scoring.
MHI has been selected for this index on a continuous basis since 2012.
External assessment of sustainability
CDP Climate Change 2020 Score B
CDP, an international non-profit organization, conducts global assessments of companies' efforts in terms of climate change and water security. There are nine levels of scoring: A, A-, B, B-, C, C-, D, D- and F (declined to answer or no response). MHI received a score of B in the CDP Climate Change 2020 assessment.
Silver rating from EcoVadis
EcoVadis of France assesses the sustainability of corporate supply chains, and operates a shared platform for evaluating and monitoring suppliers. It conducts wide-ranging research and assessments covering the environment, labor and human rights, ethics, sustainable procurement and other issues.
In 2020, MHI was awarded a Silver rating--the second highest after the top Gold score --for the second consecutive year.
MHI Obtains “Eruboshi” Mark Certification
Based on the Act on Promotion of Women's Participation and Advancement in the Workplace (the “Act to Promote Women's Participation”), the “Eruboshi” certification is granted by the Minister of Health, Labour and Welfare of Japan to those companies making outstanding contributions under certain standards for promoting women's participation.
In July 2020, MHI obtained a three-star rating, the highest of three possible levels. This certifies that MHI has fulfilled the screening criteria for all items concerning elements of the workplace environment that make it easier for women to demonstrate their ability.
MHI Obtains “Kurumin” Mark Certification
Companies that have formulated action plans for supporting employee child rearing based on the Japanese law: the Act on Advancement of Measures to Support Raising Next-Generation Children, enacted in April 2005, and that have been recognized for their results, receive the “Kurumin” mark certification. MHI obtained this certification in 2007.