PAB version of Nikkei 225 contributing to lowering GHG emissions
- Customize the Nikkei 225 to Climate Change Edition
- Companies with sales involving fossil fuels above a designated level are excluded
- Complies with the standards of the EU aligned the Paris Agreement
Overview
The Nikkei 225 Climate Change 1.5°C Target Index (Nikkei Climate 1.5°C Target Index) is an index based on the Nikkei Stock Average (Nikkei 225) where the weights of the constituents are adjusted so that its overall Green House Gas (GHG) emissions (as normalized by enterprise value) of the index is 50% lower than that of the Nikkei 225, and will be further decreased by 7% in coming years. The index complies with the minimum standards for EU Paris-aligned Benchmarks (PAB) and is developed in association with US headquartered Wilshire. Wilshire provides “Wilshire Climate Content”, which means the climate change model and any other content as developed, modified or provided by Wilshire from time to time to be included in and/or applied to the index.
-
Chart
-
ConstituentsThe constituents of the Nikkei 225 Climate Change 1.5°C Target Index are those of the Nikkei 225 where constituents meeting certain criteria are removed.
-
Periodic reviewSemi-Annually (April and October)
-
Number of constituentsNo fixed number
-
WeightingWeight based on Nikkei 225 weight adjusted by GHG intensity etc
-
Calculation Method
- The index is calculated by summing up the constituent share prices multiplied by the Weight Factors, and dividing the summation by the Divisor.
- The Divisor is adjusted like the base market value for the market capitalization based index.
-
Calculation frequencyReal time (every 5 seconds)
-
Commencement dateMay/30/2022
-
Inception dateOctober/30/2015
-
Calculation base dateOctober/30/2020 = 22,977.13
Benchmark statement for ESG Factors
| Name of the benchmark administrator | Nikkei Inc. | |
| Type of benchmark | Equity benchmark following EU PAB | |
| Name of the benchmark | Nikkei 225 Climate Change 1.5°C Target Index | |
| EU CTB/PAB or ESG Benchmarks | Yes | |
| Pursuing ESG objectives | Yes | |
| ESG Factors | Nikkei 225 | Nikkei Climage 1.5°C Target Index |
| Combined ESG scores | 2.0 | 2.0 |
| Environmental (E) scores | 2.0 | 2.0 |
| % of NACE HCI Sector | 81.6% | 81.6% |
| GHG intensity (t-CO2e/$M EVIC) | 699.9 | 243.9 |
| % of GHG emissions reported | Scope1: 96.1% Scope2: 96.8% Scope3: 79.9% |
Scope1: 95.8% Scope2: 96.5% Scope3: 79.5% |
| % of NACE Division(05-09,19 and 20) | 8.6% | 8.8% |
| % of Environmental Goods and Services sector defined in A2-5 of (EU)691/2011 | 0.4% | 0.3% |
| Social (S) scores | 2.0 | 2.0 |
| Referenced definition for controversial weapons | Treaty on the Non-Proliferation of Nuclear Weapons(1968), Biological and Toxin Weapons Convention(1972), Chemical Weapons Convention(1993), Anti-Personnel Mines Convention(1997), Convention on Cluster Munitions(2008) | Same as Left |
| Controversial weapons | 0.2% | 0.0% |
| Tobacco | 0.4% | 0.0% |
| Social violations | 0.0% | 0.0% |
| Number of constituents without due diligence policies on ILO Fundamental Conventions | 19.8% | 19.2% |
| Weighted average gender pay gap | 19.8% | 21.7% |
| Weighted average ratio of female to male board members | 23.3% | 24.2% |
| Weighted average ratio of accidents, injuries, fatalities | 7.8% | 8.0% |
| Numbers of convictions and amount of fines for violations of anti-corruption and anti-bribery laws | 0.0% | 0.0% |
| Governance (G) scores | 2.0 | 2.0 |
| Weighted average % of independent board members | 40.1% | 41.3% |
| Weighted average % of female board members | 17.7% | 18.3% |
| Data source on the ESG factors in the statement | ISS ESG | |
| Reference standards | UNGC, OECD MNE Guidelines, SDGs, ILO Conventions, GHG Protocol | |
| Forward-looking annual decarbonisation trajectory | 7.0% | |
| Annual average of the achieved decarbonisation | 10.8% | |
| Active share with respect to the base index | 16.00% | |
| Alignment of the Paris Agreement | Yes | |
| Temperature scenario used | 1.5°C with no or limited overshoot | |
| Provider of the temperature scenario used | IEA module by ISS ESG | |
| Methodology of the temperature scenario used | Sectoral Decarbonization Approach | |
| Hyperlink to the temperature scenario used | Net Zero Emissions by 2050 Scenario (NZE) | |
| Update date | October, 31 2023 | |