ESG Management: The Key to the Future

Nikkei ESG Management ForumO v e r v i e w

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Looking toward tomorrow

The Nikkei ESG Management Forum was established in April 2018. The environment surrounding corporate man-agement has changed dramatically in recent years, demanding stronger initiatives with regard to not only the Envi-ronment (E), but also Society (S) and Governance (G). The Nikkei ESG Forum harnesses all the expertise of the Nihon Keizai Shimbun (NIKKEI) to provide powerful support for member ESG management. In cooperation with the Nihon Keizai Shimbun, and selected publications of the Nikkei BP group including Nikkei Business and Nikkei ESG, the Forum will forge a new path for ESG man-agement in Japan, promoting deeper understanding of ESG through activities such as about 30 members-only study sessions a year, and providing information to companies in Japan and around the world through the Financial Times, a member of the Nihon Keizai Shimbun group.

Pioneering ESG management in Japan, and providing essential information to the world

Welcome to the ESG Forum Nikkei ESG Management Forum was reborn in April 2018 in response to the growing demand from the

industry to cover not only Environmental (E) issues, but also issues related to Social (S) and Governance (G). Companies today are required to address environmental problems such as global warming as well as to embark on business initiatives for solving social concerns, not to speak of the need for stronger corporate governance. Their ESG challenges vary from workstyle reforming to diversity promotion and increased transparency in product procurement, and there is also the pressure to disclose information to all stakehold-ers in an appropriate manner.

To better meet the changing needs of the era, we have further strengthened our three service pillars of “in-formation dissemination”, “information collection” and “survey & analysis” – all with the goal of making the Nikkei ESG Management Forum even more useful to our members. We have established an advisory board to take opinions and advice from the specialists and we will leverage the content power and the vast network of not only Nikkei Business Publications but also the whole Nikkei Group.

I hope that the Forum will contribute to improving your corporate values.

Suguru Niinomi

Representative, Nikkei ESG Management ForumPresident & CEO, Nikkei Business Publications, Inc.

Enhanced services for today’s changing needs

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Three key

pillars

Nikkei ESG Management Forum

We provide information essential in ESG activity implementation through activities such as study ses-sions and observation visits. Special-interest groups hosted by Nikkei ESG members probe deeply into specific issues, and a newly established “catch-up” class brings people new to the concepts up to speed quickly. For us, education is a never-ending story.

Helping members access crucial information

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Pillar 3 Page 9

Information acquisition

Every July we deliver a comprehensive survey of about 20,000 consumer and business respondents: surveys of perceptions of environment-friendly or socially conscious/strong governance brands. We are also considering launching an ESG brand survey.

Delivering details results of surveys and analyses

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Pillar 3 Page 12

Survey & analysis

Nikkei ESG helps member firms get their message out, through top management interviews, reports on corporate initiatives, ESG advertorials, and more. And Forum advertising (logomark ads) boost your signal strength not only within Nikkei ESG, but overseas as well via the Financial Times.

Helping members distribute information

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Pillar 1 Page 6

Information dissemination

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An engine for ESG management 1

January2

February3

March4

April5May

6June

Information acquisition

Information dissemination

Survey & analysis

Natural capital SIG

Nikkei ESG Management Forum Launch Commemorative Symposium

Environment-friendly brand survey results and analysis CD (not for sale)

Monthly logomark advertisements in Nikkei Business and Nikkei ESG magazines

Annual member introduction advertorials

Tour of the TEPCO Fukushima Daiichi Nuclear Power Plant

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An engine for ESG management 7July

8August

9September

10October

11NovemberJune

12December

Monthly Nikkei ESG article introducing

the latest initiatives of member firms

(See page 6)

Total of 30 times a year !Broad range of study

sessions and SIGs(See page 9)

Competitive comparison!

Environment-friendly brand

surveys(See page 12)

Tokyo Sustainable Seafood Symposium

Observation visit to Shimokawa Town, Hokkaido

Environment-friendly brand survey results study session

Chemical Substances Seminar

Open dialog between top management and Hiro Mizuno, Chief Investment Officer of Japan’s Government Pension Investment Fund (GPIF)

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The ESG Management Forum Launch Commemorative Symposium (February 2018, above) and the Tokyo Sustain-able Seafood Symposium (October 2017, right) feature top management and field experts, introducing a wide range of exemplary initiatives.

For special members

⃝ Reservations for up to four pages of articles or advertisements in Nikkei ESG, per year

⃝Derivative rights to posted articles, plus 1000 tear sheets

for regular members

⃝ Reservations for up to two pages of articles or advertisements in Nikkei ESG, per year

For all members

⃝ Member logomark ads run in Nikkei Business (once per month) and Nikkei ESG (monthly publication; every issue)

⃝Member logomark ads in the Financial Times (once per year)

⃝Member directory listing on the Forum website

⃝Member profile and introduction on the Forum website

Member menu

ESG-related messages from top management and news on corporate activities can be announced to the world through Nikkei ESG and other channels. The English site is scheduled to open in fall 2018, and even more infor-mation will be made available to overseas readers, such as through logomark ads in the Financial Times.

Distributing information on ESG-related business and activities to the world

Information dissemination01Activities

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Company intros in the pages of Nikkei ESG

Future Strategy interviews

ESG initiative write-ups

Distribution via webpage and ezine

(Nikkei ESG May 2018 issue)

(Nikkei ESG Aug. 2018 issue)

(Nikkei ESG May 2018 issue)

■ Member activity coverage on our website

■ Ezine published every 1st, 3rd,

and 5th Wednesday

■ Articles also posted on the Nikkei Business Online website

(Nikkei ESG Aug. 2018 issue)

Nikkei ESG introduces member corporation top management and ESG strategies through regular Future Strategy interviews, and member corporation ESG initiatives through detailed write-ups.

The latest ESG information, Forum activities, and other news is distributed through our electronic magazine (ezine), issued on the 1st, 3rd, and 5th Wednes-day of each month. In addition, the English website introducing member ac-tivities and initiatives will launch in fall 2018.

Information dissemination01

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Promotional activities of the Nikkei ESG Management Forum (logomark ads)

Promotion via books and other publications

(Nihon Keizai Shimbun Aug. 29, 2018 issue)

Monthly! (Nikkei ESG Sept. 2018 issue)

(Published March 2018)

(Published October 2017)

(Published June 2017)

Monthly! (Nikkei Business Aug. 20, 2018 issue)

In addition to running ads showing member logomarks, we also promote the Nikkei ESG Manage-ment Forum message. In August 2018 we ran the logomark ad in the Nihon Keizai Shimbun and the Financial Times, and run it every month in Nikkei Business and Nikkei ESG magazines.

Nikkei ESG publishes books related to ESG and SDGs (Sustainable Development Goals). We published SDG Text for Business Professionals in March 2018, Twenty ESG Management Case Studies in June 2017, and Biodi-versity and Natural Capital in the Age of SDGs and ESG in October 2017, featuring examples from numerous member firms (titles only available in Japanese at this time).

Information dissemination01

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⃝ A top management dialog is held twice a year, featuring executive management and key people from corporate investors involved in ESG

⃝ Participation in the Operations Committee, drawing up operations plans for the Forum

(annual)

⃝Information exchange meeting with Nikkei ESG editorial team twice annually

⃝DVD with archived copies of Nikkei ESG issues distributed at the beginning of the year

⃝ Special-interest sessions held periodically on selected themes, with results presented in Nikkei ESG

⃝Newly established “catch-up” class brings people new to the concepts up to speed quickly

⃝Both study sessions and “catch-up” classes available on video

About 30 meetings a year, including study sessions, special-interest sessions, courses for beginners, and observation visits

Promotion via books and other publications

For all members

NEW

NEW

NEW

NEW

For special members

Member menu

In addition to research activities, the Forum also periodically offers special-interest sessions probing deep into select-ed themes, and “catchup” study courses for beginners. A series of special meetings for top management is restricted to special members.

Information invaluable to the entire corporation, from top management to novices

Information acquisition02Activities

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Meetup

Commemorative Symposium presented to over 1,000

Special study sessions on emerging themes

In February 2018 a symposium entitled “Making Society Stronger through ESG” was held to commemorate the launch of the Nikkei ESG Management Forum in April. In the morning, top management from Konica-Minolta, Mitsubishi Chemical Holdings, and the Marui Group gave presentations on their corporate initiatives, followed by presentations from President Norihiro Takahashi of the Government Pension Investment Fund and Professor Kunio Ito of Hitotsubashi University Graduate School of Business Administration in the afternoon. The two sessions combined welcomed an audience of over 1,000 people, including Forum members.

We hold a variety of study sessions (semi-nars) throughout the year, made available to members free of charge. At special study sessions, staff writers and featured experts explain key themes covered in Nikkei ESG special issues. They are available in three formats to ensure that all members can make full use: school-type study sessions, discussion-based workshops, and online video streaming that can be viewed from the office, anywhere.

Online (Ustream) seminars

Videos of almost all regular study sessions are available on the Ustream video stream-ing site for viewing. They can be viewed at any time, and materials used during the session can be downloaded from the mem-bers-only site.

Nikkei ESG Management Forum Launch Commemorative Symposium (February 2018)

Environment-friendly brand survey results analysis (July 2018)

Members-only online seminar page (Forum website)

Research sessions and online seminars

Information acquisition02

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Top Management Meeting

The top management comprising the special membership is invited to two meetings a year, to exchange opinions and information with key people in corporate investment involved in the ESG field. In July 2018, a number of high-levels management people met with Hiro Mizuno, Chief Investment Officer of Japan’s Government Pen-sion Investment Fund (GPIF) at a working breakfast.

Information exchange with editorial team

This event is held twice a year to facilitate in-formation exchange between members and the Nikkei ESG editorial team, and promote closer interaction. In January 2018 a presentation was given on “Writers predict what 2018 will bring”, and in August of the same year on “The supply chain environment and human rights consider-ations,” both followed by informal buffets.

Dialog between top management and Hiro Mizuno, Chief Investment Officer, GPIF (July 2018)

Catch-up session on legal and regulatory issues affecting waste processing (May 2018)

Natural capital SIG (July 2018)

Observation visit to Shimokawa Town, Hokkaido (September 2017)

Tour of the TEPCO Fukushima Daiichi Nuclear Power Plant (May 2018)

Information exchange with editorial team (August 2018)

Special interest and catch-up sessionsThe Forum has recently launched special interest sessions, and catch-up sessions designed to bring new people up to speed on ESG matters. As of August 2018 there were three SIGs: Natural Capital, Comprehensive Reports, and Global Warming Initiatives. Catch-up sessions have been held for chemical substance management, and legal and regulatory issues affecting waste processing.

Observation visits and tours

The Forum hosts a variety of tours to related fa-cilities, and visits to sites of major interest. In May 2018 the TEPCO Fukushima Daiichi Nuclear Power Plant was visited by an observation group. Every autumn an observation tour is also offered of Shimokawa Town, Hokkaido, which is a mem-ber of the ESG Management Forum (one night lodging included).

Information acquisition02

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The environment-friend-ly b rand ind e x rank ing was surveyed for the 19th

time in 2018, and Suntory emerged as No. 1 for the second year in a row. Aeon, Asahi Beverages, and Cos-mo Oil showed significant improvement to enter the top ten.

This is the second brand r a n k i n g , f o l l o w i n g t h e 2017 survey. Toyota Motor was rated in top place both years. Shiseido, Google, and McDonald's Company (Japan) moved up in to the top ten this year.

The Forum implements a comprehensive survey of about 20,000 consumer and business respondents: surveys of per-ceptions of environment-friendly or socially conscious/strong governance brands, covering about 560 corporations. We are also considering launching an ESG brand survey.

Survey and analysis of perceptions of environment-friendly or socially con-scious/strong governance brands

Survey & Analysis03Activities

Nikkei ESG August 2018 Special Issue (published July 8, 2018)

■Environment-friendly brand ranking ■Socially conscious/strong governance brand ranking

Rank Brand Index

1 ➡ (1) Suntory 99.6

2 ➡ (2) Toyota Motor 98.7

3 ⬆ (7) Aeon 85.8

4 ⬇ (3) Panasonic 83.7

5 ➡ (5) Nissan Motor 82.7

6 ➡ (6) Kirin 76.6

7 ⬆ (9) Asahi Beer 75.0

8 ⬆ (25) Asahi Beverages 74.2

8 ⬇ (4) Honda Motor 74.2

10 ⬆ (23) Cosmo Oil 73.7

11 ⬆ (16) Mazda Motor 73.412 ⬇ (10) Coca-Cola (Japan) 72.913 ⬆ (20) Kao 72.214 ⬆ (26) Hitachi 71.715 ⬆ (17) McDonald’s Company (Japan) 70.516 ⬆ (60) Lion 70.317 ⬇ (12) Sapporo Beer 69.618 ⬆ (54) Nissin Food Products 69.519 ⬆ (22) Kagome 69.320 ⬇ (8) Seven-Eleven Japan 69.020 ⬆ (40) TOTO 69.0

Rank Brand Index

1 ➡ (1) Toyota Motor 99.6

2 ⬆ (3) Panasonic 98.7

3 ⬇ (2) Suntory 85.8

4 ⬆ (7) Shiseido 83.7

5 ⬇ (4) Google 82.7

6 ⬇ (5) Honda Motor 76.6

7 ⬆ (14) Kao 75.0

8 ⬆ (10) Sony 74.2

9 ⬆ (16) Aeon 74.2

10 ⬆ (27) McDonald's Company (Japan) 73.7

11 ⬆ (16) Apple 73.412 ⬆ (17) All Nippon Airways 72.913 ⬆ (25) Hitachi 72.214 ⬆ (26) Ajinomoto 71.715 ⬆ (33) Starbucks Coffee Japan 70.516 ⬇ (13) Yakult 70.317 ⬇ (10) Oriental Land 69.617 ⬇ (23) Nissin Food Products 69.517 ⬆ (12) Japan Airlines 69.320 ⬇ (6) Kirin 69.0

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InvestigationSurvey of perceptions of environment-friendly or socially conscious/strong governance brands

Survey results are available exclusively to members for competitive comparison

Our surveys of perceptions of environment-friendly and socially conscious/strong governance brands are sent to about 20,000 consumer and business respondents for one month in the March–April period every year, and results announced in July. 560 brands are covered, and a CD containing analysis data for all those brands but detailed report results is mailed to all members. The CD makes it possible to analyze data in detail, including comparison with competitors. Report sum-maries are published in the Nihon Keizai Shimbun, Nikkei ESG and other media. (The survey covers corporations who are members as of February 1 each year.)

Statistics can be generated for user-defined industries, response attribute, specific items, and other factors, displaying brand indexed ranks.

A n a l y s i s o f c h a n g e i n percept ion of env iron-ment-friendly stance, attri-bute-dependent data, and SG evaluation for individual companies

Compare competitors and other firms for change in

environment-friendly brand perceptions over time,

and other factors.Ranking data cross-indexes by industry and respondent attribute

Environment-friendly brand evaluation for specific company over time

Competitive comparison for environment-friendly brand per-ception

Environment-friendly brand survey results and analysis CD (available exclusively to members; not for sale)

Home menu

Cross-referenced statistics by industry, attributes, and specific items

Single-corporation data

Competitive comparison

S u r v e y & A n a l y s i s03

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We offer a range of optional services to help you collection the information you need, and disseminate your own information more effectively.

* Optional services are charged separately and in addition to membership fees.

Options

Membership details (for a 1-year membership)

e-mai : esgf@nikkeibp.co.jp HP: https://nkbp.jp/ESGENikkei ESG Management Forum Secretariat

We jointly organize seminars and symposia with corporations and national and local government, covering the event with reportage, promotional messages in various media, and articles on the website. We can also provide assistance in planning and running a wide range of private seminars.

Jointly organized seminars and symposia

Tokyo Sustainable Seafood Symposium (Octo-ber 2017)

Chemical Substances Seminar (July 2018)

⃝Books and special issues　 Assistance in the preparation of books, special editions, and special issues cov-

ering member ESG activities.

⃝In-house education and training support　 Assistance in preparing the curriculum for corporate education and training

programs, and instructor dispatch

⃝Comprehensive report preparation　Assistance in preparing a comprehensive corporate report

The following services are also available:

Information

　 Special membership Regular membership

Annual dues ¥4 million (excluding consumption tax) ¥1.5 million (excluding consumption tax)

Representative members All corporations, organization, local governments, and other parties interested in promotion ESG-related initiatives

M ajor ser vices

provided

Operations Committee

Work with Operations Committee in formulating activity plans ー

Information dissemination Coverage in Nikkei

ESG magazine

In principle, 4 pages of Nikkei ESG per year (Future Strat-egy interviews, and member corporation ESG initiative

reports), or advertisements

In principle, 2 pages of Nikkei ESG per year (Future Strat-egy interviews, and member corporation ESG initiative

reports), or advertisements

https://nkbp.jp/ESGE