March 24, 2023

Excellent TCFD Disclosure Selected by GPIF’s Asset Managers
Entrusted with Domestic Equity Investment
Government Pension Investment Fund (GPIF) requested its 13 external asset managers entrustedwith domestic equity investment (hereinafter, “external asset managers”) to nominate “excellent TCFD
disclosure.”
GPIF requested external asset managers to nominate up to five companies that provided “excellent
TCFD disclosure,” and also to each nominate up to three companies that provided “excellent
disclosure of (1) governance, (2) strategy, (3) risk management, and (4) metrics and targets,”
respectively.
As a result, 28 companies listed below were nominated for providing “excellent TCFD disclosure.”
Among them, the following companies were highly evaluated by many respondents as publishers of“excellent TCFD disclosure.”[Companies nominated by four or more external asset managers for their
excellent TCFD disclosure] (number of external asset managers)Kirin Holdings Company, Limited (10)

RICOH COMPANY, LTD. (5)Hitachi, Ltd. (7)

ITOCHU Corporation (4)[Companies selected by GPIF’s external asset managers for excellent TCFD
disclosure]
Code

Company nameCode

Num ber of
nom inations

Company nameNum ber of
nom inations

2502

Asahi Group Holdings, Ltd.

2

7752

RICOH COMPANY,LTD.

5

2503

Kirin Holdings Company, Limited

10

8001

ITOCHU Corporation

4

2607

FUJI OIL HOLDINGS INC.

1

8002

Marubeni Corporation

1

4091

NIPPON SANSO HOLDINGS CORPORATION

1

8058

Mitsubishi Corporation

1

4307

Nomura Research Institute, Ltd.

1

8306

Mitsubishi UFJ Financial Group, Inc.

3

4452

Kao Corporation

1

8331

The Chiba Bank, Ltd.

1

4528

ONO PHARMACEUTICAL CO., LTD.

1

8411

Mizuho Financial Group, Inc.

2

6361

EBARA CORPORATION

1

8766

Tokio Marine Holdings, Inc.

1

6501

Hitachi, Ltd.

7

9042

Hankyu Hanshin Holdings, Inc.

1

6702

Fujitsu Limited

1

9104

Mitsui O.S.K. Lines, Ltd.

3

6724

Seiko Epson Corporation

1

9432

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

1

6752

Panasonic Holdings Corporation

1

9508

Kyushu Electric Power Company, Incorporated

2

6758

Sony Group Corporation

1

9513

Electric Power Development Co., Ltd.

1

6902

DENSO CORPORATION

1

9613

NTT DATA Corporation

1

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

1

The number of companies whose TCFD disclosure was selected as excellent on the four disclosure
items reached 55, as listed on page 5. GPIF also requested its external asset managers entrustedwith foreign equity investment to nominate “excellent TCFD disclosure,” the result of which is shown
on GPIF’s English website.
(https://www.gpif.go.jp/en/investment/202303_excellent_TCFD_disclosure_en.pdf)[Key remarks on the “excellent TCFD disclosure” nominated by four or more external
asset managers]〇 Kirin Holdings Company, Limited
・ The descriptions of all items are in line with the TCFD recommendations and the guidance for
implementation, and are also rich in content. And it is very easy to understand.
・I was impressed with the method of developing strategies for the timeline of risk emergence divided intoa short-, medium- and long-term period, respectively. Among others, all items concerning climate change
are highly evaluated for the descriptions which are detailed to an incredible degree, at a level which I
believe may become a good example for other companies.
・All four thematic areas of the TCFD recommendations are fully completed, and the descriptions are alsointeresting to read. The company’s unique global presence is well described by analyses of agricultural
products by region, policy risks in the relevant countries and policy of overseas M&A. Covering a wide
range of risk factors, the scenario analysis presents reality by showing embodied countermeasures andmitigation measures.
・For all elements, the progress during the past one year is described in addition to the details of theinitiatives, which enables us to easily understand the changes. The financial impact is also explained indetail, which facilitates easy evaluation of the impact on future corporate value. Furthermore, therelationship between biodiversity and natural capital is also considered in the disclosure. The
consideration of the mutual relationship between climate change and natural capital is seldom found inother companies.
・It is a high-quality disclosure throughout. Starting with an overview, the four items are disclosed in a wellbalanced manner. Furthermore, we highly evaluate that details from the reflection in TCFD and strategy
to financial impact are described.
・Based on the forecast of the crop yield of ingredients by item and region, using a matrix, specificcountermeasures such as the development of brewing technology not relying on barley are disclosed.
In the water risk section, the company assesses its own sites and barley exporting ports, explaining risk
reduction measures such as diversification of procurement sources.
・On the back of its business characteristics which are highly dependent on natural capital, the company
significantly improved the content as an environmental report, containing the TNFD disclosure, from an
integrated approach to mutually relating environmental issues in addition to climate-related information.
This point in particular is highly evaluated. It is also highly evaluated that the content of the descriptionin each item of the TCFD disclosure is easy to understand and detailed.
・In all of the four items of the TCFD recommendations, the content of disclosure is excellent. Ingenuity is
exercised everywhere in the report as seen in the descriptions of risks and opportunities which areorganized by dividing them into the short-, medium- and long-term periods, and also in the explanationof financial impact which describes specific adaptation measures and mitigation measures.

2

Copyright © 2023 Government Pension Investment Fund All rights reserved.

・Risks are described in detail in the disclosure of impacts by business site and product based on theconsideration of each risk scenario. The strategies of the countermeasures are also highly visible bysimulating specific measures. The disclosure of investment plans corresponding to the acquisition of the
SBT certification (1.5°C target) is also excellent. The company’s commitment is very clear as nonfinancial indices such as climate change are adopted as business performance evaluation indices. "・Based on the company’s proprietary risk analysis concerning natural capital, the content is detailed andwide-ranging, which is clearly different from that of other companies. The report explains the risk
management approach, the results of scenario analysis and their reflection in strategies, the target andachievement of GHG reduction of each business, and the priority fields for reduction of Scope 3
emissions.

〇 Hitachi, Ltd.
・The impact and strategy of each business segment under the 1.5°C and 4°C scenarios are disclosed ina table in an easy-to-understand manner. It is also clearly described that the company is highly resilient
through strategically developing its businesses to operate under either of those scenarios.
・In both the Hitachi Environmental Innovation 2050 and 2024 Medium-term Plan, the emphasis is placedon the solution of social issues from the perspective that it leads to the creation of business opportunities
and the expansion of corporate value. We can understand that the necessary goal setting and capital
allocation are being implemented.
・The expansion of investments contributing to the reduction of CO2 by using internal carbon pricing, andthe initiatives for carbon neutrality in the value chain are highly evaluated.
・In-depth analyses spanning all of the four items are described by conducting scenario analysis bybusiness. Furthermore, detailed explanations on the initiatives in each single year in addition to longand medium-term targets are also highly evaluated.
・It is a high-quality disclosure throughout. Particularly, the detailed definitions in the scenario analysis
such as risks, opportunities and business environment in each of the 1.5°C and 4°C scenarios areevaluated favorably. The guide to relevant pages also supports the readers.
・The company promotes initiatives at a high level for each of the four items of the TCFD recommendations.
The status of progress of the achievement of the long-term environmental targets is very clear tounderstand due to the Environmental Action Plan which was formulated and managed in line with theupdated Medium-term Management Plan.
・The TCFD disclosure and the story of collaborative value creation of the company are combined at ahigh level, and the TCFD disclosure greatly helps us understand the business strategies. Detailed
information has been disclosed concerning GHG emissions.

〇 RICOH COMPANY, LTD.
・Regarding GHG emissions, the company has set aggressive targets: -63% (vs. 2015) for Scopes 1 & 2,
and -40% (vs. 2015) for Scope 3 by 2030; and zero GHG emissions across the entire value chain by
2050. Regarding transition risks and physical risks, the analyses such as financial impact and urgency
level based on each of the 2°C/1.5°C scenarios and 4°C scenario are also disclosed. Case examples of
initiatives are also presented in detail through the TCFD Report.
・The company, which has placed an emphasis on environmental management from an early stage,
specifically stated measures to achieve the targets for 2030 and 2050 based on the relationship withbusiness opportunities and risks. There are high expectations for their effectiveness.

3

Copyright © 2023 Government Pension Investment Fund All rights reserved.

・The disclosure of the state of deliberation of ESG issues at the Board of Directors’ meetings in addition
to the reduction rate of GHG (Scopes 1, 2 & 3) being linked to executive compensation as ESG targets,are highly evaluated.
・The Integrated Report gives an outline of climate change risks and opportunities. The TCFD Report andthe Circular Economy Report are issued and in-depth information is disclosed in the supplementaryvolumes (also linked to the Integrated Report). Easily accessible disclosure to meet the readers’ needs
is evaluated favorably.
・In each scenario, the risk level is judged by “impact” and “urgency level” to disclose the impact on
businesses, the status of responses and the areas of contribution, which are highly visible. Regarding
governance, a governance system unifying management and execution in collaboration between the
Board of Directors and the ESG Committee is in place. It is highly evaluated that non-financial indicessuch as climate change are adopted as performance indices, making the commitment clear.

〇 ITOCHU Corporation
・ The characteristics of the report include sophisticated risk management and metrics and targets
consistent with strategies. The highly effective company-wide initiatives are illustrated. The disclosure
helps investors’ decisions based on the in-depth explanation of the status of progress on top of thesummary of material issues by business.
・It is a high-quality disclosure throughout. Among others, governance, transition risks and scenario
analysis are described in detail and in an easy-to-understand manner.
・The explanation on the TCFD recommendation is described in detail. Regarding risks and opportunities,
the affected time frames and the related businesses are well organized, and the status of activities isalso clearly explained by disclosing actual content of climate change-related meetings of the Board of
Directors and committees.
・The report is rich in content, covering the structure of the governance system, scenario analysis basedon which risks and opportunities are grasped, countermeasures and their impact, and the status ofprogress.

4

Copyright © 2023 Government Pension Investment Fund All rights reserved.

[Companies selected by GPIF’s external asset managers for excellent disclosureof each four TCFD disclosure]
Code
1605
1911
1928
2502
2503
2607
3382
4005
4091
4204
4307
4528
4901
5401
5411
5741
6301
6305
6361
6479
6501
6645
6702
6758
6902
6981
7250
7731

Company name
INPEX CORPORATION
Sumitomo Forestry Co., Ltd.
Sekisui House, Ltd.
Asahi Group Holdings, Ltd.
Kirin Holdings Company, Limited
FUJI OIL HOLDINGS INC.
Seven & i Holdings Co., Ltd.
SUMITOMO CHEMICAL COMPANY, LIMITEDNIPPON SANSO HOLDINGS CORPORATIONSEKISUI CHEMICAL CO., LTD.
Nomura Research Institute, Ltd.
ONO PHARMACEUTICAL CO., LTD.
FUJIFILM Holdings Corporation
NIPPON STEEL CORPORATION
JFE Holdings, Inc.
UACJ Corporation
Komatsu Ltd.
Hitachi Construction Machinery Co., Ltd.

EBARA CORPORATIONMINEBEA MITSUMI Inc.
Hitachi, Ltd.
OMRON Corporation
Fujitsu Limited
Sony Group Corporation
DENSO CORPORATION
Murata Manufacturing Co., Ltd.
PACIFIC INDUSTRIAL CO., LTD.
NIKON CORPORATION

Number of nominations
(1)

(2)

(3)

(4)

1
4
2
2
1
1
1
1
4
1
-

2
5
1
1
1
1
1
1
2
1
1
1

1
1
1
4
2
1
1
2
1
1
-

1
4
1
1
1
3
3
1
1
-

Code
7752
8001
8002
8015
8031
8035
8058
8252
8306
8309
8316
8331
8411
8591
8601
8630
8750
8766
9042
9101
9104
9143
9201
9432
9508
9513
9613

Company name
RICOH COMPANY,LTD.
ITOCHU Corporation
Marubeni Corporation
Toyota Tsusho Corporation
MITSUI & CO., LTD.
Tokyo Electron Ltd.
Mitsubishi Corporation
MARUI GROUP CO., LTD.
Mitsubishi UFJ Financial Group, Inc.
Sumitomo Mitsui Trust Holdings, Inc.
Sumitomo Mitsui Financial Group, Inc.
The Chiba Bank, Ltd.
Mizuho Financial Group, Inc.
ORIX Corporation
Daiwa Securities Group Inc.
Sompo Holdings, Inc.
Dai-ichi Life Holdings, Inc.
Tokio Marine Holdings, Inc.
Hankyu Hanshin Holdings, Inc.
Nippon Yusen Kabushiki Kaisha
Mitsui O.S.K. Lines, Ltd.
SG Holdings Co., Ltd.
Japan Airlines Co., Ltd.
NIPPON TELEGRAPH AND TELEPHONE CORPORATION

Kyushu Electric Power Company, Incorporated

Electric Power Development Co., Ltd.
NTT DATA Corporation

Number of nominations
(1)

(2)

(3)

(4)

1
1
1
1
1
5
3
1
1
1
1
1
-

2
1
2
1
1
1
1
2
1
1
3
1
2

2
3
2
1
2
2
2
2
1
1
1
1

4
2
1
1
1
2
1
1
1
1
1
1
1
1
1

Note: The above list is composed of companies which were selected by external asset managers as “excellent
disclosure of each four TCFD disclosure”. ((1) governance, (2) strategy, (3) risk management, and (4)metrics and targets) (Listed in order of securities code) The companies highlighted in blue were nominatedby two or more external asset managers.

5

Copyright © 2023 Government Pension Investment Fund All rights reserved.