• Chugai is included in all five ESG indices since the initiation of ESG investment by GPIF
• Chugai has been selected as constituents in global ESG indices, 20^th consecutive year by FTSE4Good Index Series and 13^th consecutive year by MSCI ESG Leaders Indexes
• Continued to obtain “AA,” the second-highest level in the MSCI ESG rating that evaluates ESG risk tolerance

TOKYO, July 13, 2022 -- Chugai Pharmaceutical Co., Ltd. (TOKYO: 4519) announced that it has been continuously included as a constituent stock in all indices of the Japanese equities for environmental, social and governance (ESG) investment selected by the Government Pension Investment Fund (GPIF) of Japan.

<Five ESG Indices Selected by GPIF>

• FTSE Blossom Japan Index (commenced investment from July 2017):
  • An index designed to reflect the performance of Japanese companies demonstrating excellent environmental, social, and governance practices.
• MSCI Japan ESG Select Leaders Index (commenced investment from July 2017):
  • An index created from the stocks of companies with a relatively high ESG rating in each industry from among the top 700 Japanese companies by market capitalization.
• MSCI Japan Empowering Women Index (WIN) (commenced investment from July 2017):
  • An index created from a selection of companies with excellent gender diversity practices in each industry from among the top 700 Japanese companies by market capitalization.
• S&P/JPX Carbon Efficient Index (commenced investment from September 2018):
  • An index designed to measure the performance of companies in the Tokyo Stock Price Index (TOPIX) based on disclosures of environmental information and levels of carbon efficiency.
• FTSE Blossom Japan Sector Relative Index (commenced investment from March 2022):
  • An index created based on the same ESG evaluation method used in FTSE Blossom Japan Index, with an assessment of magnitude of environmental damage by companies, and companies’ management attitude toward climate change risks.

  *Chugai is included in all five ESG indices since the initiation of ESG investment.

The sustainability of Chugai has been highly regarded in terms of ESG practices, as Chugai has been selected as a constituent in the FTSE4Good Index Series for the 20^th consecutive year and in the MSCI ESG Leaders Indexes for the 13^th consecutive year, both of which are major ESG indices. In addition, we have continued to receive an “AA,” rating, the second-highest of the seven levels in the MSCI ESG rating that evaluates ESG risk tolerance, indicating that our risk tolerance to various ESG risks that may occur in the future is relatively high.

Chugai’s basic management policy is “creating shared value between our company and society” and “realize advanced and sustainable medical care centered on patients.” Chugai will continue to strive for appropriate disclosure of information on the SDGs and ESG initiatives, create value for patients and society by leveraging innovation that only Chugai can provide, and contribute to solving social issues and building a sustainable society through our business activities.

[References]

External Evaluations at Chugai Sustainability website
https://www.chugai-pharm.co.jp/english/sustainability/evaluation/

Activity Reports at Chugai Sustainability website
https://www.chugai-pharm.co.jp/english/sustainability/activity/

Chugai Annual Reports
https://www.chugai-pharm.co.jp/english/ir/reports_downloads/annual_reports.html

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