The Company is highly rated for its sustainability initiatives and has been selected as a constituent of the following ESG indices.
Selected as FY2019 Semi-Nadeshiko Brand
In March 2020, the Company was selected for the first time as the Semi-Nadeshiko Brand under the joint Nadeshiko Brand initiative by the Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange (TSE).
METI and TSE jointly select outstanding listed enterprises that promote women’s empowerment from each industry as Nadeshiko Brands. Semi-successful enterprises are selected as Semi-Nadeshiko Brands regardless of industries.
MSCI Japan Empowering Women Index (WIN)
The “MSCI Japan Empowering Women Index” is composed of leading companies within their Global Industry Classification Standard (GICS) sector groups in terms of promoting and maintaining gender diversity selected from the constituents of its parent index (the MSCI Japan IMI Top 500 Index, which includes the top 500 securities in terms of market capitalization) based on MSCI Gender Diversity Scores. This ESG index is adopted by GPIF (Government Pension Investment Fund).
The Company has been selected as its constituent for two consecutive years in 2018 and 2019.
*The inclusion of J. Front Retailing 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 J. Front Retailing Co., Ltd. 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.
Certified as Health and Productivity Management Organization 2020
J. Front Retailing Co., Ltd. and a major operating company Daimaru Matsuzakaya Department Stores Co. Ltd. were certified as “Health and Productivity Management Organization 2020 (large enterprise category),” which was selected by the Ministry of Economy, Trade and Industry and the Nippon Kenko Kaigi under the Certified Health and Productivity Management Organization Recognition Program.
The Certified Health and Productivity Management Organization Recognition Program recognizes outstanding large enterprises, SMEs and other organizations engaging in efforts for health and productivity management based on initiatives for overcoming health-related challenges in communities or for promoting health-conscious activities led by the Nippon Kenko Kaigi.
Rated four stars in the 3rd “Nikkei Smart Work Management Survey”
In November 2019, the Company was rated four stars in the 3rd “Nikkei Smart Work Management Survey,” which recognizes excellent companies that work on productivity revolution through work style reforms.
The survey was initiated by Nikkei Inc. in 2017 covering listed companies and leading unlisted companies across Japan. It defines the initiatives that maximize the performance of the organization in three areas including diverse and flexible work styles, the systems that create new businesses and market development strengths as the “Smart Work Management.” Companies are evaluated in these three areas and the management foundation including corporate governance and rated out of five stars.
SNAM Sustainability Index
The “SNAM Sustainability Index,” launched by Sompo Japan Nipponkoa Asset Management Co., Ltd. in August 2012, is an investment fund for pension funds and institutional investors that invest in companies rated highly for their ESG performance.
The Company has been selected as its constituent for eight years running since its inception.
DBJ Employees Health Management Ratings
“DBJ Employees’ Health Management Rated Loan Program” evaluates and selects companies with excellent initiatives for considering employee health using DBJ’s proprietary evaluation system and sets loan terms based on the result of the evaluation. It is the world’s first financing menu incorporating “employee health management ratings.”
The Company has been assigned the Rating for its “advanced initiatives to Employees’ Health Management” in December 2018.
Signed a loan agreement for the “Positive Impact Finance”
In December 2019, the Company has signed a loan agreement for the “Positive Impact Finance” with Sumitomo Mitsui Trust Bank, Limited. It is a business loan with unspecified use of funds in an alignment with the Principles for Positive ImpactFinance*1 established by the United Nations Environmental Programme Finance Initiative*2.
Positive Impact Finance involves comprehensive analysis and evaluation of the environmental, social, and economic impacts (positive and negative) of corporate activities, and the provision of loans to support these activities on an ongoing basis. The greatest feature is to use as evaluation indicators and disclose the degree to which the company contributes to the achievement of corporate SDGs. The Company is the first retailer that signed this agreement.
The Company has received a third-party opinion from Japan Credit Rating Agency, Ltd. (represented by TAKAGI Shokichi, President)*3 concerning the compliance with the Principles for Positive Impact Finance of the evaluation procedures and the rationality of the evaluation indicators used to sign the agreement.
*1 Principles for Positive Impact Finance
This is a financial framework for achieving the Sustainable Development Goals (SDGs) formulated by the United Nations Environment Programme Finance Initiative (UNEP FI) in January 2017. By disclosing the contributions to the achievement of SDGs in KPIs and assessing the positive impact of these contributions and providing funds, the banks guide the efforts of funded companies to increase the positive impact and reduce the negative impact. As a responsible financial institution, the lending bank monitors the indicators to ensure that their impacts are continuing.
*2 United Nations Environmental Programme Finance Initiative (UNEP FI)
The United Nations Environment Programme (UNEP) is a subsidiary body of the United Nations established in 1972 as an implementing agency for the Human Environment Declaration and the International Environmental Action Programme. UNEP FI is a broad and close partnership between UNEP and more than 200 global financial institutions. Since its establishment in 1992, it has been working with financial institutions, policies and regulators to transform itself into a financial system that integrates economic development and ESG (environmental, social, and corporate governance) considerations.
*3 Please visit the website of Japan Credit Rating Agency, Ltd. for details.
Rated on the “A-” list of CDP climate change research 2019
In January 2020, the Company was rated on the “A-” list of the climate change research 2019 by CDP, a global NGO, for the first time. The climate actions of the Company, which defines contribution to a low-carbon society as one of its five materiality issues, including the efforts to obtain approval from the Science Based Targets (SBT) initiative and support for the Task Force on Climate-related Financial Disclosures (TCFD) were recognized.
“Silver” rating in the PRIDE Index
The Company has received a silver rating in the “PRIDE* Index 2019” that evaluates initiatives relating to LGBTs and other sexual minorities (hereinafter called “LGBT”). The “PRIDE Index,” which evaluates LGBT-related initiatives at workplaces, was launched by a voluntary organization “work with Pride” to help companies create LGBT-friendly workplaces in Japan.
The Group’s initiatives include clear statements on LGBT on the website and in the “Principles of Action” for employees and suppliers, employee training for a correct understanding of LGBT, the creation of an online community to raise internal awareness, and gender-free events held in department stores. The rating was awarded in recognition of these efforts.
*“PRIDE” stands for:
1. Policy: Action Declaration
2. Representation: LGBTA Network
3. Inspiration: Raising Awareness
4. Development: Human Resources Management Policy and Programs
5. Engagement/Empowerment: Social Responsibility and External Activities