JPX-Nikkei Index 400
Tokuyama has been selected for inclusion in the JPX-Nikkei Index 400, which is comprised of 400 companies that have high appeal for investors and meet requirements of global investment standards, such as efficient use of capital and shareholder-focused management perspectives.
FTSE Bloosom Japan Sector Relative Index
The FTSE Blossom Japan Sector Relative Index, which is one of the ESG indices used by Japan's Government Pension Investment Fund (GPIF), and is based on the FTSE Russell's ESG scores, just like the FTSE Blossom Japan Index. For companies with a high carbon intensity (greenhouse gas emissions per unit of sales), the FTSE Blossom Japan Sector Relative Index also evaluates the company's management approach concerning climate change risks and opportunities. Furthermore, the index includes companies with relatively high ESG scores within each industry, and the industry weighting is adjusted at the sector level. Tokuyama has been selected one of its constituent stocks.
S&P/JPX Carbon Efficient Index
Tokuyama has been selected for inclusion in the S&P/JPX Carbon Efficient Index, another of the ESG indices used by Japan's Government Pension Investment Fund (GPIF). As an S&P Dow Jones Index, it is based on carbon emissions data from Trucost, a pioneer in environmental assessment. The S&P/JPX Carbon Efficient Index uses a higher weighting for companies with high carbon efficiency (low greenhouse gas emissions per unit of sales) within the same industry and companies that disclose their greenhouse gas emissions.
External Evaluation of Products and Procurement
Green Gold Label (GGL)
As the global biomass certification scheme with the longest history (since 2002), Green Gold Label (GGL) covers the entire supply chain from production, processing, and transport, to final use for bioenergy. It is also a third-party certification recognized under the business planning guidelines (for biomass power generation, revised in April 2021) of Japan's Agency for Natural Resources and Energy. In order to reduce its greenhouse gas emissions, Tokuyama is pursuing the use of palm kernel shells as a standard biomass fuel for its onsite power plants. To also promote sustainable procurement from a compliance and environmental perspective, we have acquired Green Gold Label certification for the palm kernel shells that we use.
Participation in Environmental Initiatives
The United Nations Global Compact
The United Nations Global Compact is a voluntary initiative for companies and organizations to demonstrate responsible and creative leadership, act as good corporate citizens, and participate in the creation of a global framework for achieving sustainable growth. We signed the United Nations Global Compact on September 18, 2019.
See here for more details.
Task Force on Climate-related Financial Disclosures (TCFD)
Based on a resolution of the Board of Directors dated February 25, 2021, the Tokuyama Group supports the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The Group has been promoting initiatives to fight climate change based on four thematic areas identified by the recommendations: governance, strategy, risk management, and metrics and targets.
See here for more details.
Tokuyama joined this initiative to activate measues for the TCFD in April 2023.
GX League Basic Concept
Tokuyama has participated in the GX League since its inception in May 2023.
The GX League is a mechanism by which companies taking on the challenges of green transformation can work with governments, educational institutions, and financial institutions to achieve carbon neutrality by 2050. Via our participation in the league, we will set challenging GHG emission reduction targets and transition strategies, further strengthen our efforts to achieve them, and pursue the reduction of CO2 and other GHG emissions.
*GX: Green Transformation