Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainability

Governance Achievements

• Corporate governance reforms increasing focus on shareholder returns.
• TSE initiatives to enhance corporate value.
• Share repurchases of 3,615,644 ordinary shares for holding in Treasury, representing 2.7% of the issued share capital. A further 3,351,529 ordinary shares were repurchased subsequently.

Climate Goals & Targets

Environmental Challenges

• Style divergence in the Japanese market, with large-cap value stocks outperforming small-cap growth names.
• Headwinds for growth-oriented strategies due to rising interest rates.
• Weak recovery in China.
• Inventory correction in factory automation and semiconductor-related companies.
• Concerns about rising costs associated with the development of new operations in some portfolio companies.

Mitigation Strategies

• Disciplined, research-driven investment process.
• Trimming outperformers and recycling into new opportunities.
• Focus on growth at reasonable price and contrarian growth names.
• Engagement with investee companies to improve sustainability and shareholder value.
• Monitoring leading indicators such as machine tool orders.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting investee companies, their supply chains and customers.
• Earthquakes in Japan

Transition Risks

• Increasing regulation as a result of climate change.

Reporting Standards

Frameworks Used: UNPRI

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: MSCI ESG Ratings, UN Global Compact