FTSE Blossom Japan Index Series

The FTSE Blossom Japan Index Series is designed to measure Japanese company performance demonstrating specific Environmental, Social and Governance (ESG) practices.

The indices are constructed so that industry or sector weights align with the Japanese equity market while aiming to maintain similar Industry Classification Benchmark (ICB) sector characteristics to the underlying universe.

We provide market participants with a benchmark solution that incorporates ESG considerations without deviating significantly from the design and performance of the traditional market capitalisation-weighted benchmark, the FTSE Japan All Cap Index. To minimise any industry or sector bias, the indices have been designed using an industry-neutral or sector-neutral approach.

There are two indices within the family, the FTSE Blossom Japan Index and FTSE Blossom Japan Sector Relative Index, that:

Facilitate ESG integration into the Japanese market to encourage better corporate sustainability performance and practices using FTSE ESG Scores.
Follow industry or sector weights to give a closer reflection of the Japanese equities market and to reduce tracking error, relative to the FTSE Japan All Cap Index.
Enable for company engagement to provide an established transparent reference in the capital markets and to encourage company disclosure and investment stewardship practices.

The indices can be used as performance benchmarks or as the basis for index-linked products including index-tracking funds, derivatives and Exchange Traded Funds (ETFs).

Useful link

Index-linked products

Index performance

FTSE Blossom Japan Index

310 Japanese securities, as of 19 June 2023.
Industry-neutral approach to minimise industry bias by matching weights with those of the underlying index.
The index selects Japanese companies with ESG Scores 3.3 and above.
Since 2017, the index demonstrates a clear ESG standard for market participants and companies to utilise in their stewardship and engagement efforts.

FTSE Blossom Japan Sector Relative Index

605 Japanese securities, as of 19 June 2023.
The sector has a sector-neutral approach to minimise sector bias by matching weights with those of the underlying Index.
It selects Japanese companies in the top 50% of each sector and with ESG Scores 2.0 and above.
The index supports climate transition to a low carbon economy by evaluating companies’ climate governance and climate change efforts with TPI Management Quality Score.

Key resources

Why FTSE Japan Blossom Index?

Comprehensive and representative

Modular construction

Rigorously maintained

Indices to guide the next phase of integration and stewardship of ESG considerations into investment approaches

Sustainable investing has become 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 Series is designed to identify and measure the performance of Japanese companies that demonstrate strong Environmental, Social and Governance (ESG) practices via the FTSE ESG Scores methodology. The indices are constructed to be industry- or sector-neutral compared with the Japanese equity market, represented by the FTSE Japan All Cap Index.

Facilitating ESG integration into the Japanese market – to support improved ESG outcomes and drive better corporate sustainability performance and practices using FTSE ESG Scores
Following industry or sector weights – to more closely reflect the Japanese equities market and to reduce tracking error, relative of the FTSE Japan All Cap Index
Company engagement – to provide an established transparent reference in the capital markets and to improve company engagement, disclosure and investment stewardship practices
Index uses – as performance benchmark or as the basis for index-linked products including index tracking funds, derivatives and Exchange Traded Funds (ETFs)