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FTSE Blossom Japan Index

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A new index to help investors with integration and stewardship of ESG considerations into their investment strategies 

Sustainable investing is becoming the new normal. In Japan, market participants are increasingly looking to incorporate sustainable investment approaches into their investment philosophy and strategies. To support this growing demand, the FTSE Blossom Japan Index is designed to provide market participants with a tool to identify and measure the performance of Japanese companies that demonstrate strong environmental, social and governance (ESG) practices. The index is constructed to be industry neutral compared with the Japanese equity market represented by the FTSE Japan Index. It uses the globally established FTSE4Good Index Inclusion Rules which are drawn from existing international standards including the UN Sustainable Development Goals.

The FTSE Blossom Japan Index:

  • Facilitates ESG integration into passive investment strategies.
  • Provides a performance benchmark and tool for the creation of index-tracking investments, financial instruments or fund products focused on sustainable investment.
  • Is designed to follow industry weights of FTSE Japan Index to give a closer reflection of the Japanese equities market and to reduce tracking error.
  • Includes companies meeting clear and transparent standards with respect to environmental, social and governance practices.
  • Provides an established reference as a transparent and evolving global ESG standard which investors can use for stewardship and corporate engagement.

 

Resources and materials

Index Information and Documentation

The FTSE Blossom Japan index is constructed using the globally established FTSE4Good Index Inclusion Rules which are drawn from existing international standards including the UN Sustainable Development Goals.

The FTSE Blossom Japan Index provides market participants with a benchmark solution that incorporates ESG considerations without deviating significantly from the design and performance of the traditional market capitalization weighted benchmark, the FTSE Japan Index. To minimize any industry bias, the index has been designed using an industry-neutral weighting approach