External Evaluations
Below is a summary of the evaluations and awards received from external organizations for Chugai’s activities and initiatives.
Our proactive initiatives have been evaluated from the standpoint of corporate sustainability in such areas as the environment, society and governance. Chugai will continue to fulfill its social responsibility as a healthcare company.
Inclusion in Major ESG Indices
Chugai has been continuously selected as a constituent of global ESG indices such as FTSE4Good Index series and MSCI ESG Leaders Indexes since 2003 and 2010, respectively. In addition, Chugai is listed for all five ESG indices used by the Government Pension Investment Fund of Japan.
ESG Indices of Global Equities
Dow Jones Sustainability Indices
DJSI is a leading ESG index developed by S&P Dow Jones Indices (USA). Companies are selected as a constituent annually based on an assessment of their economic, environmental and social sustainability.
Chugai has been recognized as a company with excellent sustainability. In 2020 Chugai was selected for the first time in the “DJSI World,” a global index that includes the top eight sustainable pharmaceutical companies in the world. The following year, in 2021, Chugai continued to be selected with the second highest score in the world in the same sector.
Chugai was also selected as a constituent of “DJSI Asia Pacific” for the seventh time and the forth consecutive year.
MSCI ESG Leaders Indexes
An index by MSCI (USA) that selects companies from around the world with excellent ESG ratings.
The sustainability of Chugai has been highly regarded in terms of ESG practices, as Chugai has been included in the MSCI ESG Leaders Indexes for 12 consecutive years.
In addition, we have received an “AA” rating, the second highest of the seven MSCI ESG ratings. That means that our risk tolerance is evaluated to be relatively high against various future ESG risks.
FTSE4Good Index Series
An index by FTSE Russell (UK) designed to measure the performance of companies that vigorously practice ESGs.
Chugai has been selected for FTSE4Good Index Series, a global ESG index, for 19 consecutive years.
Five ESG Indices Selected by GPIF
Chugai has been continuously included as a constituent stock of the following five ESG indices for Japanese equities since the initiation of ESG investment by the Government Pension Investment Fund (GPIF).
FTSE Blossom Japan
An index designed to reflect the performance of Japanese companies demonstrating excellent environmental, social, and governance practices. (commenced investment from July 2017)
FTSE Blossom Japan Sector Relative Index
An index designed to measure the relative performance of Japanese companies in each sector demonstrating excellent environmental, social, and governance practices. This is a general ESG index that screens stocks based on these ESG ratings as well as assessment of magnitude of environmental damage by companies, and companies’ management attitude toward climate change risks. (commenced investment from March 2022)
MSCI Japan ESG Select Leaders Index
An index created from the stocks of companies with relatively high ESG ratings in each industry from among the top 700 Japanese companies by market capitalization. (commenced investment from July 2017)
MSCI Japan Empowering Women Index (WIN)
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. (commenced investment from July 2017)
S&P/JPX Carbon Efficient Index
An index designed to measure the performance of companies in the Tokyo Stock Price Index (TOPIX) based on the level of environmental information disclosure and carbon efficiency. (commenced investment from September 2018)
- The inclusion of Chugai Pharmaceutical Co., Ltd. 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 Chugai Pharmaceutical Co., Ltd. by MSCI or any of its affiliates. The MSCI indices are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.
- As the result of a third-party audit, FTSE Russell (a registered trademark of FTSE International Limited and Frank Russell Company) hereby attests that Chugai satisfies the conditions of listing on the FTSE Blossom Japan Index and has been made a constituent stock of such index. The FTSE Blossom Japan Index was created by FTSE Russell, a global index provider, and has been designed to measure the performance of Japanese companies demonstrating excellent environmental, social, and governance (ESG) practices. The FTSE Blossom Japan Index is widely used in the creation and evaluation of sustainable investment funds and other financial products.
- As the result of a third-party audit, FTSE Russell (a registered trademark of FTSE International Limited and Frank Russell Company) hereby attests that Chugai satisfies the conditions of listing on the FTSE Blossom Japan Sector Relative Index and has been made a constituent stock of such index. The FTSE Blossom Japan Sector Relative Index is widely used in the creation and evaluation of sustainable investment funds and other financial products. https://www.ftserussell.com/products/indices/blossom-japan
Other ESG Indices
SOMPO Sustainability Index
This is an active index independently created by SOMPO Asset Management by combining ESG evaluation with equity valuation (fundamental value). ESG evaluations are conducted by SOMPO Risk Management, and 300 brands that exceed the criteria are certified. Chugai has been continuously selected as a constituent stock in recognition of its overall ESG initiatives since the index was developed.
Other Evaluations
Environmental Initiatives
CDP
CDP is an international NGO established in the United Kingdom to promote environmental information disclosure. CDP operates a global information disclosure system to help investors, companies, nations, regions, and cities manage their own environmental impact. The organization’s main activity is to encourage companies and local governments to take environmental measures through research, assessments, and disclosures of their environmental initiatives.
Chugai received an A rating through CDP’s questionnaires in 2021 for both climate change and water security, and has been recognized for excellent company on corporate environmental ambition, action and transparency worldwide.
SBT
The Science Based Targets initiative (SBTi) is a partnership between four organizations: CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). SBTi is promoting to set a Science Based Targets (SBT) to meet the Paris Agreement goal of limiting global warming to 1.5°C compared to pre-industrial levels.
In December 2021, the SBTi Secretariat granted Chugai SBT certification for the greenhouse gas reduction targets set forth in Chugai’s Mid-term Environmental Goals 2030, which demonstrates that the targets are consistent with the Paris Agreement.
Employee Empowerment Initiatives
Nadeshiko Brand
METI and TSE have jointly implemented the Nadeshiko Brand since FY2012, selecting listed companies who are outstanding in promoting the active participation of women.
In recognition of Chugai’s proactive approach to diversity, Chugai was selected as a Nadeshiko Brand in 2021 and 2022, as well as four consecutive years from 2015 to 2018.
- Please refer to the following link for details.
https://www.meti.go.jp/english/policy/economy/human_resources/index.html
New Diversity Management Selection 100
METI evaluates and recognizes companies which have delivered results by leveraging the capabilities of diverse human resources including women, the elderly, and foreign nationals.
In March 2018, Chugai won the New Diversity Management Selection 100 Award which METI uses to recognize companies that have successfully improved corporate value through diversity management.
- Please refer to the following link for details.
https://www.meti.go.jp/english/policy/economy/human_resources/index.html
“White 500” Health and Productivity Management Organization
Under the Health and Productivity Management Organization program, METI, in collaboration with the Nippon Kenko Kaigi, grants certification to large enterprises that demonstrate outstanding efforts in practicing health and productivity management.
The Chugai Group has established goals, policies, and priority items as it works to engage in more proactive, ongoing efforts to contribute to the well-being of its employees. By reaching these goals in the medium to long term, Chugai will achieve its vision for health and productivity management. In recognition of these efforts to date, Chugai has been certified as a “White 500” Health and Productivity Management Organization 2022 (Large Enterprise Category) following last year.
- Please refer to the following link for details.
https://www.meti.go.jp/policy/mono_info_service/healthcare/kenkoukeiei_yuryouhouzin.html
DX Initiatives
Digital Transformation Stock (DX Stock)
DX Stocks are selected jointly by METI and TSE with the aim of accelerating the digital transformation of Japanese companies.
Chugai has been selected as a DX Stock for three consecutive years since 2020 in recognition of its efforts across the entire value chain including reforming drug discovery and transforming the manufacturing process using digital technologies as well as initiatives of providing new value to healthcare professionals and patients.
In addition, Chugai was also awarded the DX Grand Prix in 2022 as a leading company in DX implementation.
Award
Chugai Receives First Prize in 23rd Nikkei Annual Report Awards
The Nikkei Annual Report Awards have been held each year since 1998 for the further enhancement and diffusion of annual reports issued by Japanese companies. Chugai started to publish an integrated annual report from “Annual Report 2012,” and has made various efforts to promote a better understanding of its unique strengths and corporate value among a wide range of stakeholders. As a result, we have won three Grand Prizes, four Second Prizes, and one Excellent Award, and have received a high evaluation for the eighth consecutive year since starting to publish the integrated report in 2012.
