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The Tokyo Stock Exchange Group selects ITOCHU as an ESG Stock
July 20, 2012
The Tokyo Stock Exchange Group, Inc. has selected ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) as one of the corporations that excels in ESG (Environmental, Social and Governance).
ESG stands for Environmental, Social and Governance. Corporations and it is thought that corporations that consider and respond to ESG issues appropriately, and that the existence of shareholders who assess these factors and make investment decisions resolve or improve environmental and social problems. This, in turn, is said to lead to the sound growth and development of the capital markets and contribute to shaping a sustainable society. Also, corporations that heed ESG-related issues are expected to show sustainable growth in their business and thus demonstrate improved investment performance.
This selection was conducted by the Tokyo Stock Exchange Group as part of the +YOU (Plus You ~ The Japanese economy along with each and every person ~ ) * initiative aimed at supporting the Japanese economy. The screening process, which covered more than 1600 companies listed on the First Section of the Tokyo Stock Exchange, involved picking out large-cap stocks as well as small-/medium-cap stocks that had a high ESG score from each of the 17 industries in the TOPIX-17 Series. Among this group, corporations that had the highest ROE (return on equity) and above the industry average were selected. As a result, ITOCHU was selected from the commercial and wholesale trade category.
In this selection, ITOCHU earned high marks for reinforcing its initiatives in the area of natural energy, such as wind power, solar energy and bioenergy, and incorporating businesses with which ITOCHU contributes to resolving social challenges into its basic corporate social responsibility policies. The Company also received commendation for its focus on cultivating global human resources.
Based on the corporate mission of being “committed to the global good,” ITOCHU will continue to contribute to forming a sustainable society by working to resolve social challenges on a global scale. In addition, it will promote strengthening its initiatives on hiring, cultivating and working with those who can contribute to global business development.
*+YOU (Plus You) ~ The Japanese economy along with each and every person ~ )
The stock market is rallying behind the Japanese economy in this project that aims to support Japan’s reconstruction efforts, cultivate corporations for Japan’s future and revitalize the capital markets.
The Tokyo Stock Exchange Group, Inc.: Viewing corporations in the context of ESG