External Ratings and Evaluation

The Nisshinbo Group strives for sustainability initiatives and has received evaluations and awards from Japan and overseas ESG evaluation organizations.

Status of ESG Index Inclusion

Nisshinbo Holdings Inc. has been selected for inclusion in Japan and overseas ESG indexes.

MSCI ESG RATINGS

MSCI ESG Research assigns MSCI ESG ratings to globally listed companies and some unlisted companies. Ratings assess industry-specific ESG risks and management relative to peers, which range from AAA (first-mover) to CCC (second-mover).

THE USE BY NISSHINBO HOLDINGS OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF NISSHINBO HOLDINGS BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.

Three ESG indices adopted by GPIF

FTSE Blossom Japan Sector Relative Index

The FTSE Blossom Japan Sector Relative Index constructed by FTSE Russell, a global index provider, is designed to be sector neutral with indices reflecting the performance of Japanese companies that are relatively good for environmental, social, and governance (ESGs) responses in each sector. In addition, to promote the transition to a low-carbon economy, particularly for companies with high greenhouse gas emissions, only the companies that are evaluated for their improvement efforts based on TPI management quality scores are included.

FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Nisshinbo Holdings Inc. has been independently assessed according to the FTSE Blossom Japan Sector Relative Index criteria, and has satisfied the requirements to become a constituent of the FTSE Blossom Japan Sector Relative Index. Created by the global index provider FTSE Russell, the FTSE Blossom Japan Sector Relative Index is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE Blossom Japan Sector Relative Index are used by a wide variety of market participants to create and assess responsible investment funds and other products.

MSCI Japan Empowering Women Index (WIN)

Nisshinbo Holding was selected for inclusion in the MSCI Japan Empowering Women Index (WIN), an ESG index developed by MSCI Corporation of the United States. The MSCI Japan Empowering Women Index (WIN) is a stock price index developed by MSCI (USA) for ESG investments. The index is constructed from data on gender diversity based on the Act on Promotion of Women’s Participation and Advancement in the Workplace and corporate disclosures.

THE INCLUSION OF NISSHINBO 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 NISSHINBO 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.

S&P/JPX Carbon Efficient Index

This index is one of the ESG indices selected by GPIF (Pension Investment Fund Incorporated Administrative Agency). It is a universe of TOPIX, which is a representative stock price index showing trends in the Japanese market. The index determines the weight of constituent stocks by focusing on the status of disclosures of environmental information and the level of carbon efficiency.

SOMPO Sustainability Indexes

This index is used for "SOMPO Sustainable Management," a responsible investment product for pension funds and institutional investors managed by SOMPO Asset Management Co., Ltd., which invests in companies with strong environmental, social, and governance (ESG) ratings. The brands are reviewed annually based on the results of the Bunano Mori (Beech Forest) Environmental Questionnaire and the ESG Management Survey conducted by the company.

External Ratings and Evaluation of the Nisshinbo Group's ESG Activities

CDP Climate Change 2022

CDP Water Security 2022

Nisshinbo Group

The CDP is an international NGO working in the environmental field. The CDP surveys more than 18,700 companies worldwide and assigns scores from A to D in more than 1,100 cities, states, and regions to assess how companies effectively responds to the issues of climate change, deforestation, and water security. The Nisshinbo Group received a "B" rating in Climate Change 2022 and a "B–" rating in Water Security 2022.

The Nikkei's 2022 SDG Management Survey

Nisshinbo Group

In the overall rankings of the 2022 Nikkei SDG Management Survey, which rates and evaluates companies on their ability simultaneously to improve corporate value and contribute to the SDGs, the Group was awarded a four-star rating.

The Nikkei SDG Management Survey consists of questions in four areas: SDG strategy/economic value, social value, environmental value, and governance. The survey defines SDG management as efforts to contribute to the SDGs through business activities in ways that lead to improved corporate value. The evaluation of companies draws on surveys of companies and publicly available data based on 21 evaluation indicators. This year, the fourth year of the survey, 886 companies participated in the survey, including companies listed on Japanese exchanges.

The Nikkei Smart Work Management Survey

Nisshinbo Group

The Nisshinbo Group was recognized with a three-star rating in the overall assessment of the "Sixth Nikkei Smart Work Management Survey," which selects advanced companies that are accepting the challenge of a productivity revolution through work-style reforms. This survey has been conducted by Nikkei Inc. since 2017. Targeting listed companies nationwide and leading unlisted companies, the survey define Smart Work Management as an initiative to maximize organizational performance based on three factors: the realization of diverse and flexible work styles, the structure to create new businesses, and the ability to develop markets. The survey is evaluated on a five-star scale. In 2022, 813 companies, including domestic listed companies, participated in the survey.

The Toyo Keizai CSR Company Rankings

Nisshinbo Holdings Inc.

In its latest assessment of CSR, the 2023 CSR Company Rankings, Toyo Keizai Inc. (hereafter, Toyo Keizai) rated Nisshinbo Holdings Inc. highly for the various initiatives being deployed by the Group. Toyo Keizai awarded the Group a ranking of AAA on the environment, corporate governance and a ranking of AA on human resources utilization, social services.

Conducted annually since 2005 by Toyo Keizai, the CSR Corporate Rankings draw on survey results to select a list of "trusted companies" from the perspectives of both corporate social responsibility (CSR) and finance, which are becoming increasingly complex. This 2023 CSR Company Ranking is the 17th.

SOMPO Risk Management the “Buna no Mori“ Environmental Questionnaire 2022

Nisshinbo Holdings Inc.

Nisshinbo Holdings Inc. received an overall rank of A in the evaluation results of the “Buna no Mori” Environmental Questionnaire 2022 conducted by Sompo Risk Management Inc.
The Buna no Mori Environmental Questionnaire analyzes and evaluates the status of a company's environmental management efforts. In order to evaluate companies based on the characteristics of each industry, the best-in-class method is used to select companies with relatively superior initiatives within each industry. Companies are classified into 27 unique industry categories based on the 33 industry categories of the TSE, and their environmental management is evaluated on a relative basis within each industry category. The top 25% of companies in each industry with relatively excellent environmental management systems are given an A ranking, companies in the 25th to 75th percentile are given a B ranking, and companies in the 75th percentile or lower are given a C ranking. Companies that score below a certain level or that have been downgraded due to scandals are given a D rank. In the Sompo Japan Green Open fund (nicknamed "Buna no Mori"), companies ranked A to C are considered as candidate stocks for investment.

Selected as a "Zero Emissions Challenge Company" by METI

Nisshinbo Holdings Inc. ., Japan Radio Co., Ltd., Nisshinbo Chemical Inc.

In collaboration with Keidanren, the New Energy and Industrial Technology Development Organization (NEDO), and the Ministry of Agriculture, Forestry and Fisheries (MAFF), METI is working on the Zero Emissions Challenge project, which lists the companies that are accepting the challenge of innovation aimed at achieving 2050 carbon neutrality and which provides investors with useful information.
The following initiatives were highly evaluated, and each of the initiatives selected as Zero Emissions Challenge Companies by the Ministry of Economy, Trade and Industry of Japan: Technology Development Project for Social Implementation of Marine Biodegradable Plastics by Nisshinbo Holdings Inc.; Project for Realization of Energy-Saving Society with Robots and Drones by Japan Radio Co. Ltd.; and Industry-Academia-Government Collaboration Problem-solving Research and Development Project about Advancement of Fuel Cells, etc. Technologies and Utilization Project by Nisshinbo Chemical Inc.

The Certified Health and Productivity Management Organization Recognition Program 2023

Nisshinbo Holdings Inc., Japan Radio Co., Ltd., Nisshinbo Micro Devices Inc., Nisshinbo Brake Inc., Nisshinbo Mechatronics Inc., Nisshinbo Chemical Inc., Nisshinbo Textile Inc., Nagano Japan Radio Co., Ltd., Ueda Japan Radio Co., Ltd., JRC Logistics Service Co., Ltd., Nagano Japan Radio Manufacturing Co., Ltd., Nisshinbo Micro Devices AT Co., Ltd., Nisshinbo Micro Devices Fukuoka Co., Ltd.

Nine companies were certified in the large corporate sector under the Certified Health and Productivity Management Organization Recognition Program, which is designed by the Ministry of Economy, Trade and Industry and selected by the Japan Health Council. Four companies were certified in the small and medium scale corporate sector under the Certified Health and Productivity Management Organization Recognition Program 2023.

Kurumin Certification as a Childcare Support Company

Nisshinbo Holdings Inc., Japan Radio Co., Ltd., Nagano Japan Radio Manufacturing Co., Ltd.

Kurumin Certification is a system to certify companies that meet certain requirements, such as formulating and implementing action plans to help employees balance work and child care, as a company that supports child rearing, based on the Act on Advancement of Measures to Support Raising Next-Generation Children. Nisshinbo Holdings Inc., Japan Radio Co., Ltd. and Nagano Japan Radio Manufacturing Co., Ltd. have been certified by the Minister of Health, Labor and Welfare (Kurumin certification).