Nikkei 225 Climate Change
1.5°C Target Index

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Contributing to lowering GHG emissions,
rediscovering the appeal of Japanese stocks『Nikkei 225 Climate Change
 1.5°C Target Index』

What is the Nikkei 225 Climate Change 1.5°C Target Index?

  • This index is based on the Nikkei
    Stock Average (Nikkei225)

    It consists of issues selected from these 225 stocks.

  • Targeting a carbon-free society
    by 2050

    To contribute to accomplishing a carbon-free society,
    this index has standards for the exclusion of certain companies
    and adjusted weight of constituents.

  • Stock index to incentivize companies

    This index places emphasis on companies
    with low levels of greenhouse gas (GHG) emissions.

  • Aligned with the goals of the Paris Agreement

    The Paris Agreement established the goal of limiting global
    warming to no more than 1.5°C above the level
    before the start of the industrial revolution.

Customize the Nikkei 225 to Climate Change Edition

1Companies with sales involving fossil fuels above a designated level are excluded

Coal (1% or more)
Oil fuels (10% or more)
Natural gas, electricity generation (50% or more)

  • Companies where coal and coal-related services are at least 1% of earnings
  • Companies where petroleum fuel and related services are at least 10% of earnings
  • Companies where natural gas fuel and related services are at least 50% of earnings
  • Companies where electricity generation with a GHG emission intensity of more than 100g CO2e/kWh is at least 50% of earnings
  • Companies with businesses involving controversial weapons and tobacco
  • Companies with businesses that violate the UN Global Compact
  • Companies with businesses that violate the OECD Guidelines for Multinational Enterprises

2The perspective of ESG is
used to exclude certain companies

Weapons
Tobacco
Established Norms

3The weight of the index constituents is
adjusted based on levels of
GHG emissions

Nikkei 225

Nikkei 225 Climate Change 1.5°C Target Index

Constituents with low GHG emissions

Stock A

Stock B

Increasing its weight in the index than the Nikkei 225.

Decreasing its weight in the index than the Nikkei 225.

Constituents with high GHG emissions

Stock D

Stock E

Constituents of the Nikkei 225 Climate Change 1.5°C Target Index

The index complies with the standards of the EU aligned the Paris Agreement.*Paris-aligned Benchmarks

Nikkei 225

Nikkei 225 Climate Change 1.5°C Target Index

1GHG emission reduction of at least 50% compared
with emissions of the Nikkei 225

At least
-50%

2Reduction of GHG emissions at
an average annual rate of at least 7%

At least
-7% per year

Performance of the Nikkei 225 Climate Change 1.5°C Target Index

The difference in performance reflects investors’ assessments of measures to climate change.

※Calculated retroactively from the end of October 2015

Interest is high in companies with an environmental commitment in investment.

What types of companies appeal to you in investment?

44.4％

Japanese stocks

12.7％

Investments in companies with a
strong ESG commitment

※Quotes from results of a survey to determine perceptions of the Nikkei 225 with responses from about 6,000 people.