Yokohama Rubber selected for ESG indices
The Yokohama Rubber Co., Ltd. has expressed pride in its inclusion in two stock indices that focus on companies with strong Environmental, Social, and Governance (ESG) practices – the FTSE4Good Index Series and the FTSE Blossom Japan Index. This is the 16th consecutive year that Yokohama Rubber has been included in the global FTSE4Good Index Series, and the company considers its continued selection further confirmation that its ESG activities and disclosure practices “meet the highest global standards.” It is also the fourth year in a row that Yokohama Rubber has appeared on the FTSE Blossom Japan Index.
The United Nations’ Sustainable Development Goals (SDGs) have assumed growing weight in corporate management and in equity investment in recent years. Although ESG commitment doesn’t necessarily appear on corporate balance sheets, it increasingly figures as a factor when investors appraise companies. ESG-linked stock indices are thus gaining influence when it comes to shaping equity investment.
The FTSE4Good Index Series and FTSE Blossom Japan Index are two of the many indices developed and maintained by global index provider FTSE Russell. Investors around the world use the former as a benchmark index for their ESG-focused investments. FTSE Russell established the FTSE Blossom Japan Index as an industry-neutral index that reflects the performance of Japanese companies that demonstrate strong ESG practices. It is one of four indices that Japan’s Government Pension Investment Fund (GPIF) uses to guide its ESG investments.
Yokohama Rubber states that a commitment to addressing ESG issues is central to its management strategy. “The company will continue striving to fulfil that commitment in working to achieve sustainable growth and to maximise corporate value over the medium and long terms.”