February 7, 2020

Excellent Integrated Reports and Most-improved Integrated Reports
Selected by GPIF’s Asset Managers Entrusted with Domestic Equity Investment
Government Pension Investment Fund (GPIF) requested its external asset managers entrusted withdomestic equity investment (hereinafter, “external asset manager”) to nominate “excellent integrated
reports” and “most-improved integrated reports.”
The number of companies issuing integrated reports has been increasing every year, surpassing 400
in 2018 and reportedly reaching 500 in 2019. This year, GPIF requested external asset managers toeach nominate up to 10 companies, and the result of the survey was compiled in two lists comprisedof 71 (67 in the previous survey) and 91 (87 in the previous survey) companies selected for having
created excellent integrated reports and most-improved integrated reports, respectively, as shown on
page 4 herein.
The following companies were nominated by the most respondents as publishers of excellent
integrated reports and most-improved integrated reports.
[Companies nominated by four or more external asset managers for their excellent
integrated report] (number of external asset managers)






Hitachi, Ltd. (7)Kirin Holdings Company, Limited (6)ITOCHU Corporation (6)Mitsui Chemicals, Inc. (5)MARUI GROUP CO., LTD. (5)






SUMITOMO CHEMICAL COMPANY, LIMITED (4)Kao Corporation (4)MITSUI & CO., LTD. (4)MS&AD Insurance Group Holdings, Inc. (4)[Companies nominated by four or more external asset managers for their most-improved
integrated report] (number of external asset managers)MinebeaMitsumi Inc. (6)FUJI OIL HOLDINGS INC. (5)Note: As the definition of an integrated report depends on individual external asset managers, a report that is not
specified as an integrated report may be nominated if it is considered by an external asset manager that
information disclosure is conducted based on “integrated thinking.” The names of the companies are listed inorder of their securities code in cases where the number of nominating external asset managers is the same.

<Distribution of Nominated Companies based on the Number of Nominations byExternal Asset Managers>

1[Key remarks on the “excellent integrated reports” nominated by four or more external
asset managers]〇 Hitachi, Ltd.
・

The report demonstrates the company’s strong will and strategies to expand sustainable corporate
value including measures to improve profitability and initiatives for social innovation businesses basedon its past experience as well as ROIC management and balance sheet strategy.

・ The CEO’s message is also organized with a sense of story that deepens the satisfaction of investors.
・ The business models are comfortably summarized for readers despite an extensive range ofbusinesses. The explanation of materiality issues is also highly satisfactory, with detailed descriptionsof risks and opportunities.
・ The volume of explanation for each ESG issue is well balanced, and the content is summarized in anadvanced but easy-to-understand way. The interview with outside directors of the company was so
specific and clear, and the most worthwhile reading.
・ The explanations of financial and non-financial targets and initiatives, the mechanisms to support
sustainable growth, capital allocation strategy, innovation and others are thorough and easy tounderstand, which shows a high degree of perfection as a whole. The disclosure of each section basedon the TCFD recommendations can be evaluated as advanced.

〇 Kirin Holdings Company, Limited
・ Greater emphasis is placed on substantial issues such as ROIC targets exceeding capital cost, thedirector’s expertise and the succession processes for the representative director.
・ The report clearly illustrates the company’s short-, medium- and long-term initiatives in its aim tobecome a global leader in creating shared value (CSV). Non-financial targets have also been distinctly
set, not to mention financial targets. Information disclosure in line with the TCFD recommendations isskillfully created by using a link to the company’s environmental report.
・ Covering necessary themes including details of business and strategies, the report has reached a levelsuch that employees can use it as a tool to deepen their understanding of the company’s businesses.

〇 ITOCHU Corporation
・ The report has successfully transmitted the company’s intense efforts for the sustainable growth of its
steadily expanded business performance and corporate value, while retaining a sound sense of crisis.
At the same time, we can also understand that the core issue is the human resource strategy.
・ The company’s efforts to visualize sustainability as illustrated in the PDCA statement based on nonfinancial KPI is highly regarded.
・ The CEO’s message is worth reading, as it contains the company’s long-term vision. Segment
information such as ROA by business segment, a key indicator for a general trading company, hasbeen prepared satisfactorily. The disclosure of “Net Profit (Loss) by Major Group Companies” is ofgreat interest.

〇 Mitsui Chemicals, Inc.
・ The report is comprehensive and has been completed to a high degree of perfection, containing
descriptions accompanied by specific numbers on pages detailing the long-term business plan, CEO
and CFO messages and the introduction of businesses, as well as remarks from some third parties.
・ Financial and non-financial information by business are stated in an integrated manner, and theinformation is convincing in showing how a competitive advantage has been gained as a result.
・ In the message from the long-term oriented top management, the direction and concept can be wellunderstood by investors. The descriptions of KPI using the Blue Value and Rose Value clearly showthat the company endeavors to contribute to the environment and society through its businesses.

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〇 MARUI GROUP CO., LTD.
・ Detailed explanations are provided in the form of Q&A based on the results of repeated discussions
with various stakeholders. At the same time, the report suggests that future directions for reachinggoals, purposes and methods for creating value are well organized and sophisticated, of which thecompany seems to be confident.
・ The report demonstrates future directions for reaching goals by disclosing main KPIs in the businessresults section and from the medium-term point of view while describing a story of transforming
earnings structure through the innovation and development of business models from long-term
perspectives.

・ The report clearly conveys the company’s messages to investors by providing explanations including
business models, strategies for optimal capital and specific human resources investment, all of which
are free of ambiguity while reflecting creativity.

〇 SUMITOMO CHEMICAL COMPANY, LIMITED・ Unique disclosure of information such as “One Year at Sumitomo Chemical” and SWOT Analyses ofthe major businesses is of great interest. Value creation models for a wide range of business fields,
systems for providing added value, relationships with stakeholders, etc. are summarized briefly.
・ As for greenhouse gas (GHG) reductions, the company acquired approval from the Science Based
Targets initiative (SBTi) as the first company in the world among diversified chemical companies, andannounced its medium- to long-term targets. In response to the TCFD recommendation, the company
disclosed quantitative impacts on earnings when carbon pricing was introduced.
・ The company’s sincere attitudes toward disclosing actual situations in detail give us a positive
impression of a corporate culture that values trust and confidence. The ESG strategy, particularly
verification by third parties, etc. should be promoted more.

〇 Kao Corporation
・ The president’s management stance to strive to achieve sustainable income growth is widespreadthrough the entire report by positively promoting not only financial activities but also non-financial
activities centering on ESG. The content is also summarized concisely and is clearly understandable.
・ The report as a whole is completed to a high degree of perfection, with clear descriptions on theinitiatives of the company’s ESG strategy, “Kirei Lifestyle Plan,” as well as the ESG governance system,and specific matters deliberated by the Board of Directors.
・ The company’s efforts can be monitored with reported annual data concerning water usage and CO2
emissions.

〇 MITSUI & CO., LTD.
・ The report comprehensively discloses both financial and non-financial information by indicating thecompany’s strengths based on its own analysis concerning what is required to further reinforce thebusiness foundation that has been cultivated through repeated challenges and innovation. The
messages from the CEO and CFO are also clearly stated, marking the report as strongly adhering to
the improvement of corporate value.
・ Amid diversified businesses, the report clearly explains the company’s initiatives for portfolio
management and risk management. The risks and opportunities of materiality issues have been
identified to clarify the linkage to each business.
・ The systems and activity reports of the Board of Directors and several committees are described indetail. The explanation on the directors’ remuneration system is also excellent.

〇 MS&AD Insurance Group Holdings, Inc.
・ The report is excellent in terms of quantitative disclosure associated with the effectiveness of the Boardof Directors such as the number of agendas and the trend of the average time taken to deliberate eachone, in addition to the World Map of Natural Catastrophes, which is a unique information disclosure
initiative that we cannot find with any other companies.

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・ The report is edited in a reader-oriented manner by providing information concerning the management
environment such as the environment surrounding industries and explanations of technical terms.

・ The CEO’s message leads the entire composition of the report. The company’s ideal structure is clearlystated and pursued by backcasting, which leads to reader satisfaction.

[Key remarks on the “most-improved integrated reports” nominated by four or more
external asset managers]〇 MinebeaMitsumi Inc.
・ The description on sustainable growth has been improved by adding materiality to value creation.
Furthermore, the relationship between SDGs and long-term performance growth has become more
specific by stating “Creating solutions to social issues” in each business segment.
・ The President’s impassioned message conveys the company’s concept of corporate governance thatshould be “substantially materialized” based on what the company emphasizes in its M&A strategy
that has lead the aforementioned growth.
・ This is the second issue of the company’s integrated report. While the previous issue remained no
more than an annual report focusing on business strategy, this year’s issue has identified andtransmitted materiality through the President’s message. Financial and non-financial information havealso been improved by including financial strategy, stated by the CFO.

〇 FUJI OIL HOLDINGS INC.
・ Continuous efforts and improvements have been noted in the disclosure stance, such as descriptionsof the reduction in cross-shareholdings and clarification of the cross-shareholding policy as well as
issues requiring improvement, at the Board of Directors. The outline of the value creation process has
been clarified by presenting challenges and countermeasures in the company and in each business.
・ The company’s initiatives have been strengthened, as seen in reflecting views provided bystakeholders when ESG management priority themes were identified, in addition to improved
disclosure on the company’s efforts toward sustainable procurement.
・ We can well understand that ESG management has been widespread and executed within thecompany. The company’s backcasting way of thinking and sincere attitude concerning solutions tosocial issues are highly regarded.

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[Companies selected by GPIF’s external asset managers for excellent integrated reports]
CodeCompany name

Code

Company name

Code

Company name1605

INPEX CORPORATION

4523

Eisai Co., Ltd.

7752

Ricoh Co., Ltd.
Dai Nippon Printing Co., Ltd.

1812

KAJIMA CORPORATION

4902

KONICA MINOLTA, INC.

7912

1878

Daito Trust Construction Co., Ltd.

5108

Bridgestone Corporation

7947

FP Corporation

1925

DAIWA HOUSE INDUSTRY CO., LTD.

5201

AGC Inc.

7951

Yamaha Corporation

1928

Sekisui House, Ltd.

5411

JFE Holdings, Inc.

7956

Pigeon Corporation

2502

Asahi Group Holdings, Ltd.

6098

Recruit Holdings Co., Ltd.

8001

ITOCHU Corporation

2503

Kirin Holdings Company, Limited

6268

Nabtesco Corporation

8031

MITSUI & CO., LTD.

2593

ITO EN, LTD．

6326

Kubota Corporation

8053

Sumitomo Corporation

2768

Sojitz Corporation

6361

EBARA CORPORATION

8056

Nihon Unisys, Ltd.

2802

Ajinomoto Co., Inc.

6367

DAIKIN INDUSTRIES, LTD.

8058

Mitsubishi Corporation

2811

KAGOME CO., LTD.

6471

NSK Ltd.

8252

MARUI GROUP CO., LTD.

3086

J. FRONT RETAILING Co., Ltd.

6479

MinebeaMitsumi Inc.

8303

Shinsei Bank, Limited

3231

Nomura Real Estate Holdings, Inc.

6501

Hitachi, Ltd.

8306

Mitsubishi UFJ Financial Group, Inc.

3289

Tokyu Fudosan Holdings Corporation

6645

OMRON Corporation

8354

Fukuoka Financial Group, Inc.

4005

SUMITOMO CHEMICAL COMPANY, LIMITED

6701

NEC Corporation

8591

ORIX Corporation

4183

Mitsui Chemicals, Inc.

6724

SEIKO EPSON CORPORATION

8604

Nomura Holdings, Inc.

4186

TOKYO OHKA KOGYO CO., LTD.

6758

Sony Corporation

8725

MS&AD Insurance Group Holdings, Inc.

4188

Mitsubishi Chemical Holdings Corporation

6841

Yokogawa Electric Corporation

8766

Tokio Marine Holdings, Inc.

4204

SEKISUI CHEMICAL CO., LTD.

6856

HORIBA, Ltd.

9101

Nippon Yusen Kabushiki Kaisha

4307

Nomura Research Institute, Ltd.

6857

ADVANTEST CORPORATION

9202

ANA HOLDINGS INC.

4452

Kao Corporation

6869

SYSMEX CORPORATION

9501

Tokyo Electric Power Company Holdings, Inc.

4506

Sumitomo Dainippon Pharma Co., Ltd.

6902

DENSO CORPORATION

9531

Tokyo Gas Co., Ltd.

4508

Mitsubishi Tanabe Pharma Corporation

6963

ROHM Co., Ltd.

9697

CAPCOM CO., LTD.

4519

CHUGAI PHARMACEUTICAL CO., LTD.

7011

MITSUBISHI HEAVY INDUSTRIES, LTD.

Note: The above list is composed of companies whose integrated reports were selected by external asset
managers as “excellent integrated reports.” (Listed in order of securities code)
The companies highlighted in blue were nominated by two or more external asset managers.

[Companies selected by GPIF’s external asset managers for most-improved integrated
reports]
Code

Company nameCompany name

Code

Code

Company name

1801

TAISEI CORPORATION

4681

Resorttrust, Inc.

7186

Concordia Financial Group, Ltd.

1963

JGC HOLDINGS CORPORATION

4901

FUJIFILM Holdings Corporation

7203

TOYOTA MOTOR CORPORATION

2269

Meiji Holdings Co., Ltd.

4911

Shiseido Company, Limited

7532

Pan Pacific International Holdings Corporation

2433

Hakuhodo DY Holdings Inc.

5021

Cosmo Energy Holdings Co., Ltd.

7733

Olympus Corporation

2503

Kirin Holdings Company, Limited

5201

AGC Inc.

7751

Canon Inc.

2590

DyDo GROUP HOLDINGS, INC.

5401

NIPPON STEEL CORPORATION

7752

Ricoh Co., Ltd.

2607

FUJI OIL HOLDINGS INC.

5411

JFE Holdings, Inc.

7951

Yamaha Corporation

2802

Ajinomoto Co., Inc.

5486

Hitachi Metals, Ltd.

7956

Pigeon Corporation

2811

KAGOME CO., LTD.

5803

Fujikura Ltd.

8001

ITOCHU Corporation

3086

J. FRONT RETAILING Co., Ltd.

5938

LIXIL Group Corporation

8015

Toyota Tsusho Corporation

3099

Isetan Mitsukoshi Holdings Ltd.

6098

Recruit Holdings Co., Ltd.

8053

Sumitomo Corporation

3231

Nomura Real Estate Holdings, Inc.

6268

Nabtesco Corporation

8056

Nihon Unisys, Ltd.

3289

Tokyu Fudosan Holdings Corporation

6301

Komatsu Ltd.

8058

Mitsubishi Corporation

3382

Seven & i Holdings Co., Ltd.

6305

Hitachi Construction Machinery Co., Ltd.

8113

Unicharm Corporation

3402

Toray Industries, Inc.

6361

EBARA CORPORATION

8303

Shinsei Bank, Limited

3861

Oji Holdings Corporation

6370

Kurita Water Industries Ltd.

8334

The Gunma Bank,Ltd.

4005

SUMITOMO CHEMICAL COMPANY, LIMITED6471

NSK Ltd.

8410

Seven Bank, Ltd.

3591

Wacoal Holdings Corp.

6367

DAIKIN INDUSTRIES, LTD.

8316

Sumitomo Mitsui Financial Group, Inc.

4042

Tosoh Corporation

6479

MinebeaMitsumi Inc.

8591

ORIX Corporation

4091

TAIYO NIPPON SANSO CORPORATION

6501

Hitachi, Ltd.

8750

Dai-ichi Life Holdings, Inc.

4186

TOKYO OHKA KOGYO CO., LTD.

6632

JVCKENWOOD Corporation

9005

TOKYU CORPORATION

4188

Mitsubishi Chemical Holdings Corporation

6702

FUJITSU LIMITED

9101

Nippon Yusen Kabushiki Kaisha

4204

SEKISUI CHEMICAL CO., LTD.

6728

ULVAC, Inc.

9201

Japan Airlines Co., Ltd.

4208

Ube Industries, Ltd.

6758

Sony Corporation

9202

ANA HOLDINGS INC.

4324

DENTSU INC.

6762

TDK Corporation

9501

Tokyo Electric Power Company Holdings, Inc.

4502

Takeda Pharmaceutical Company Limited

6856

HORIBA, Ltd.

9502

Chubu Electric Power Co., Inc.

4507

SHIONOGI & CO., LTD.

6857

ADVANTEST CORPORATION

9513

Electric Power Development Co., Ltd.

4519

CHUGAI PHARMACEUTICAL CO., LTD.

6971

KYOCERA Corporation

9719

SCSK Corporation

4540

TSUMURA & CO.

6981

Murata Manufacturing Co., Ltd.

9735

SECOM CO., LTD.

4612

Nippon Paint Holdings Co., Ltd.

6988

Nitto Denko Corporation

9983

FAST RETAILING CO., LTD.

4613

Kansai Paint Co., Ltd.

Note: The above list is composed of companies whose integrated reports were selected by external asset
managers as “most-improved integrated reports.” (Listed in order of securities code)
The companies highlighted in blue were nominated by two or more external asset managers.

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Copyright © 2020 Government Pension Investment Fund All rights reserved.