FTSE Russell and JPX Enhance Blossom Japan Indices with Alignment to TOPIX for ESG Integration

FTSE Russell and JPX Enhance Blossom Japan Indices with Alignment to TOPIX for ESG Integration

(IN BRIEF) FTSE Russell and JPX Market Innovation & Research Inc. have announced a collaboration to align the FTSE Blossom Japan Index and the FTSE Blossom Japan Sector Relative Index with the Tokyo Stock Price Index (TOPIX). This move, driven by customer feedback, aims to further integrate ESG factors into the Japanese market. The index names will be updated to the FTSE JPX Blossom Japan Index and FTSE JPX Blossom Japan Sector Relative Index, and the integration of TOPIX constituent data will be applied starting in December 2025. This collaboration supports the growing focus on corporate sustainability and the advancement of sustainable investing in Japan’s stock market.

(PRESS RELEASE) LONDON, 21-May-2025 — /EuropaWire/ — FTSE Russell, a global index provider, and JPX Market Innovation & Research Inc. (JPXI), a subsidiary of Japan Exchange Group (JPX), today announced a significant collaboration to align the FTSE Blossom Japan Index and the FTSE Blossom Japan Sector Relative Index with the Tokyo Stock Price Index (TOPIX). This alignment comes in response to customer feedback and aims to better integrate Environmental, Social, and Governance (ESG) considerations into the Japanese stock market.

As part of the collaboration, the names of the FTSE Blossom Japan Index and the FTSE Blossom Japan Sector Relative Index will change to the FTSE JPX Blossom Japan Index and FTSE JPX Blossom Japan Sector Relative Index, respectively. Additionally, non-TOPIX constituents will no longer be eligible for inclusion in the FTSE JPX Blossom Japan Index Series. The integration of TOPIX constituent information will take effect starting with the index rebalancing in December 2025, ensuring a smooth transition.

Fiona Bassett, CEO of FTSE Russell, commented, “We’re excited to expand our partnership with JPX to enhance the FTSE Blossom Japan indices. Since their launch, these indices have played a crucial role for customers seeking to incorporate ESG risks and performance into their equity strategies. This product enhancement, driven by customer feedback, will further ensure that the indices continue to promote ESG integration in the Japanese market.”

Satoshi Futagi, President and CEO of JPX Market Innovation & Research, added, “We are pleased to support the enhancement of the FTSE Blossom Japan Index series, which has become a widely accepted sustainable index. By incorporating data from TOPIX, Japan’s flagship stock index, we anticipate a broader adoption of index investing focused on corporate sustainability, thereby advancing the development of the Japanese stock market.”

The FTSE Blossom Japan Index Series is designed to track the performance of Japanese companies that actively engage in ESG activities. It uses the FTSE Russell ESG Data Model, which provides a transparent methodology to assess a company’s exposure to and performance on ESG factors. The indices aim to maintain a balance between ESG considerations and traditional market capitalisation-weighted benchmarks, adopting industry-neutral and sector-neutral approaches to avoid biases.

Since its launch, the FTSE Blossom Japan Index Series has been widely adopted, including by Japan’s Government Pension Investment Fund (GPIF) since 2017, where it has been recognized as the top-performing sustainable index in GPIF’s latest ESG report. Additionally, several ETFs tracking the FTSE Blossom Japan Index are listed on the Tokyo Stock Exchange.

About FTSE Russell, an LSEG business

FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $18.1 trillion is benchmarked to FTSE Russell indexes. Leading asset owners, asset managers, ETF providers and investment banks choose FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering.

FTSE Russell is wholly owned by London Stock Exchange Group.

For more information, visit FTSE Russell.

About JPX Market Innovation & Research

JPX Market Innovation & Research, Inc. (JPXI) was established as a new subsidiary of Japan Exchange Group, alongside the exchanges, the self-regulatory organization, and the clearing house. It commenced business on April 1, 2022. By consolidating JPX Group’s index, data, and digital-related services, as an organization that serves a central role in JPX Group’s strategic business development, we will contribute to bolstering the competitive strengths and status of Japan’s financial and capital markets while actively creating diverse market services that address new demand. In addition, JPXI will play a key role in creating the global, comprehensive financial and information platform “G-HUB” as set out under our long-term vision to be achieved by 2030 “Target 2030”. JPXI, as a leading index administrator for the Japanese market, covers a number of equity and derivatives indices including its flagship index, TOPIX (Tokyo Stock Price Index).

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