External ESG Evaluations
JFE Holdings is highly regarded by ESG evaluation organizations in Japan and overseas. Particularly notable, it is a constituent of all the Japanese equity ESG indexes selected by the Government Pension Investment Fund (GPIF), the world’s largest pension fund.
FTSE Blossom Japan Sector Relative Index (Invested in by the GPIF)
JFE Holdings has been selected for four consecutive years as a constituent of the FTSE Blossom Japan Sector Relative Index, an investment index provided by FTSE Russell. This ESG index was adopted by the GPIF in March 2022. It refers to the ESG assessment made by FTSE Russell as a base and reflects management practices toward climate change risks and opportunities for some constituents that have high carbon intensity (GHG emissions per unit of revenue).
FTSE Blossom Japan Sector Relative Index (Invested in by the GPIF)
JFE Holdings is a constituent of the FTSE Blossom Japan Sector Relative Index, an investment index provided by FTSE Russell. It refers to the ESG assessment made by FTSE Russell as a base and reflects management practices toward climate change risks and opportunities for some constituents that have high carbon intensity (GHG emissions per unit of revenue).
MSCI Japan ESG Select Leaders Index (Invested in by the GPIF)
*THE INCLUSION OF JFE HOLDINGS, INC. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF JFE HOLDINGS, INC. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.
JFE Holdings has been selected for two consecutive years as a constituent of the MSCI Japan ESG Select Leaders Index, an investment index provided by MSCI Inc. The index is based on MSCI’s ESG research, which is used by over 1,000 companies around the world. This comprehensive ESG index reflects ESG risks to the market portfolio and is comprised of constituents with relatively high ESG evaluation within the industry.
MSCI Japan Empowering Women Index (WIN) (Invested in by the GPIF)
*THE INCLUSION OF JFE HOLDINGS, INC. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF JFE HOLDINGS, INC. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.
JFE Holdings has been selected for three consecutive years as a constituent of the MSCI Japan Empowering Women Index (WIN), an investment index provided by MSCI Inc. The index is constructed by multidimensionally calculating a gender diversity score of a constituent of the MSCI Japan IMI top 700 index and selecting companies from each industry that achieved high scores.
S&P/JPX Carbon Efficient Index (Invested in by the GPIF)
JFE Holdings has been selected as a constituent of the S&P/JPX Carbon Efficient Index, jointly developed by S&P Dow Jones Indices and the Japan Exchange Group. The weighting of constituents in the index is determined by the status of corporate disclosure for environmental information and the level of carbon efficiency, or carbon emissions per unit of revenue.
Morningstar Japan ex-REIT Gender Diversity Tilt Index (Invested in by the GPIF)
JFE Holdings is a constituent of the Morningstar Japan ex-REIT Gender Diversity Tilt Index provided by Morningstar, Inc. This index is based on the data and evaluation methods of Equileap and is designed to facilitate investment prioritizing companies that have established gender diversity policies embedded in their corporate culture and companies committed to providing equal opportunities for employees regardless of gender.
FTSE4Good Index Series
JFE Holdings has been selected for four consecutive years as a constituent of the FTSE4Good Index Series, an investment index provided by FTSE Russell. This comprehensive ESG index in general applies the same ESG assessment scheme as that used for the FTSE Blossom Japan Index. Constituents have high absolute ESG ratings and are screened from major stocks around the world.
MSCI ESG Leaders Indexes
*THE INCLUSION OF JFE HOLDINGS, INC. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF JFE HOLDINGS, INC. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.
JFE Holdings has been selected as a constituent of the MSCI ESG Leaders Indexes, an investment index provided by MSCI Inc., since 2018. The index is formed of major stocks around the world with high ESG evaluations within their industry, selected based on MSCI’s ESG research.
Evaluation Based on CDP 2022
Established in Britain in 2000, the Carbon Disclosure Project (CDP) is a nongovernmental organization that conducts ESG evaluations. It calls on companies to disclose ESG-related information by responding to CDP questionnaires to facilitate the ESG investment decisions of institutional investors. Currently, the CDP covers three environmental areas: climate change, water security, and forests, and companies are rated on an eight-point scale (from A to D-) for each area. The volume of information collected by the CDP has become one of the largest in the world, with currently over 1,101 companies in Japan responding to the questionnaires, which are widely used in various indexes by institutional investors and for socially responsible investment.
The JFE Group actively participates in CDP initiatives as a member of the CDP Reporter Service and responds to climate change and water security questionnaires every year. Our high rating reflects our complete disclosure of appropriate information for the CDP 2022 questionnaire.
CDP 2022 score: climate change: A-, water security: A-, supplier engagement: A-
White 500 Organization under the 2023 Certified Health and Productivity Management Outstanding Organizations Recognition Program
JFE Engineering was recognized as a White 500 organization, one of the top 500 companies selected under the 2023 Certified Health and Productivity Management Outstanding Organizations Recognition Program. Sponsored by Japan’s Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi, the program recognizes organizations that practice excellent health management, including large enterprises and small and medium-sized companies.
The company implements effective, ongoing efforts to improve employee lifestyle habits, such as instilling exercise routines, alleviating sleep-deprivation risks, and reducing smoking rates, based on an analysis of employee health risks. Furthermore, in March 2018, it established a health management system, headed by the president, as well as the JFE Engineering Health Declaration to disclose its health management initiatives internally and externally. These efforts have been highly regarded and led to this certification.
Under this program, JFE Engineering has been recognized as a White 500 company for three consecutive years and the fifth time overall, and as an Outstanding Organization for six consecutive years.
SOMPO Sustainability Index
JFE Holdings has been selected for 12 consecutive years as a constituent of the SOMPO Sustainability Index (former: SNAM Sustainability Index), which was launched by Sompo Asset Management Co., Ltd. The index, which comprises companies with highly regarded ESG ratings, contributes to investor asset formation by evaluating corporate value from a long-term perspective.
DBJ Employees’ Health Management Rated Loan Program
The DBJ Employees’ Health Management Rated Loan Program is the world’s first financing menu that bases loan conditions on DBJ’s proprietary system for rating health management for the purpose of selecting and evaluating companies based on their performance in this area.
JFE Holdings’ efforts in pursuing employee health management has been highly regarded, and it is rated as a top-ranking company under the program.
DBJ Environmentally Rated Loan Program
The Development Bank of Japan (DBJ) Environmentally Rated Loan Program uses a screening (rating) system developed by DBJ to evaluate environmental management and then assign a corresponding interest rate from three levels. This was the world’s first loan program to incorporate environmental ratings in its financing menus. In March 2016, JFE Holdings was rated as a top-ranking company that pursues excellent and advanced environmental initiatives resulting in outstanding environmental-management performance, based on which the company secured a loan under the program.
External Evaluations of Non-ESG Areas
Noteworthy DX Companies 2023
JFE Holdings was selected as a Noteworthy DX Company 2023 for actively promoting DX under the Digital Transformation Stock Selection (DX Stock) 2023 program, jointly sponsored by Japan’s Ministry of Economy, Trade and Industry, the Tokyo Stock Exchange, and the Information-technology Promotion Agency.
Over the years, the JFE Group has developed diverse businesses and now possesses a vast database of operational data that is among the best in the world. Combining this data as the source of value creation with cutting-edge AI, IoT, data science, and other technologies has enabled us to improve productivity and achieve stable production at our steelworks, biomass power generation plants, and other facilities. We have also been recognized for pursuing advanced initiatives on developing sites and human resource development systems for promoting DX.
The JFE Group positions DX as a key management strategy and will continue to provide new added value to external parties by taking on the challenges of innovating existing businesses and creating new ones, in addition to achieving groundbreaking improvements in productivity.
