Toyota Tsusho Corporation ("Toyota Tsusho") announced today that it has been selected once again as a constituent of the global ESG (Environment, Social and Governance) index, "FTSE4Good Index Series," created by the global index and data provider FTSE Russell, and the "FTSE Blossom Japan Index." It was also selected as a constituent of the "FTSE Blossom Japan Sector Relative Index" that was newly created this year.

The "FTSE4Good Index Series" is designed to measure the performance of companies demonstrating strong ESG practices. It is used by a wide variety of market participants to create and assess sustainable investment funds and other financial products.

The "FTSE Blossom Japan Index" is designed as an industry neutral*¹ benchmark that reflects the performance of companies demonstrating strong ESG practices in Japan that covers 11 industry sectors.

The newly constructed "FTSE Blossom Japan Sector Relative Index" of the "FTSE Blossom Japan Index Series" is designed as a sector neutral*¹ benchmark that reflects the performance of companies demonstrating relatively strong ESG practices in Japan that covers 45 sectors. In addition, in order to promote the transition to a low-carbon society, for companies with particularly high greenhouse gas ("GHG") emissions, only those whose improvement efforts have been highly rated by the TPI*² Management Quality Score are selected.

The "FTSE Blossom Japan Index" and "FTSE Blossom Japan Sector Relative Index," as comprehensive ESG indices for domestic stocks, have been adopted as benchmarks for passive management (an investment strategy linked to price movements of the market as a whole) by the General Pension Investment Fund (GPIF).

Last year in July, Toyota Tsusho announced its targets to reduce GHG emissions by 50% from 2019 levels by 2030 and to achieve carbon neutrality by 2050. In order to pass on a better global environment to the children of the future, Toyota Tsusho will contribute to the transition to a decarbonized society by accelerating businesses that contribute to GHG reduction throughout the industrial lifecycle and promoting carbon neutral initiatives.

*1 Industry Neutral / Sector Neutral
To minimize industry/sector bias by matching weights of 11 industries such as oil, gas, industrial machinery and 45 sectors such as oil and gas producers, petroleum equipment/services/distribution, construction materials, electronics and electronic equipment with those of the underlying index.

*2 Transition Pathway Initiative (TPI)
A score to assess the quality of opportunity and risk management related to a company's GHG emissions and transition to low carbon

<Related Information> FTSE Blossom Japan Index Series
https://www.ftserussell.com/products/indices/blossom-japan