Consultation on Potential
Enhancement to the MSCI Japan
Empowering Women (WIN) Index
Methodology
August 2019
This consultation may or may not lead to the implementation of any or all of the proposedchanges in MSCI’s indexes. Consultation feedback will remain confidential unless aparticipant requests that its feedback be disclosed. In that case, the relevant feedback
would be published at the same time as the final results of the consultation.
© 2019 MSCI Inc. All rights reserved.
Please refer to the disclaimer at the end of this document.

Overview• Proposed enhancement to the MSCI Japan Empowering Women(WIN) Index Methodology‒ Proposal: Change the parent index from the MSCI Japan IMI Top
500 to the MSCI Japan IMI Top 700• The proposal aims to provide enhanced coverage of the MSCI Japan
IMI universe, following the increased availability of ESG data

• The change would be implemented starting from the November
2019 Semi-Annual Index Review

MSCI welcomes feedback from market participants until September 17, 2019
and will announce its decision on or before September 24, 20192

Methodology enhancement
Proposal: change the parent index to the MSCI Japan IMI Top 700
ParametersMethodology

Parent Index (CURRENT)MSCI Japan IMI Top 500(ranked by free float market capitalization, 20% buffer)

Parent Index (NEW)MSCI Japan IMI Top 700(ranked by free float market capitalization, 20% buffer)

Controversies Screening(unchanged)

Exclude Securities with:• ESG Controversy Score = 0• Human Rights Controversy Score <= 2
• Labor Rights Controversy Score <= 4

Other Screening(unchanged)•Security Selection(unchanged)

Securities with Gender Diversity Score above the sector
medianSecurity Weighting(unchanged)

Security weight = Free float market capitalization *Sector relative Gender Diversity Score *Sector Relative Quality Score(weights are normalized to 100%)

Exclude REITs

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Broader opportunity set• Changing the parent index would broaden the MSCI Japan Empowering
Women (WIN) Index by 85 securities across the 11 GICS® sectors

Simulation as of the May 2019 Semi-Annual Index Review

4Simulated impact
Number of Constituents
GICS Sector

Gender Diversity Score MedianCurrent*

Additions

Deletions

Simul.

Current*

Simul.

Diff.

Energy

22

13

5.2

5.3

3%

Materials

275-32

5.0

4.9-2%

Industrials

5324-

77

5.0

4.7-6%

Consumer Disc.

3320-

53

5.5

5.2-5%

Consumer Staples

248-

32

6.8

6.5-5%

Health Care

186-

24

6.7

6.5-3%

Financials

228-

30

7.4

7.0-5%

Information Tech.

238-

31

5.7

5.5-4%

Comm. Services

83-

11

6.2

5.9-4%

Utilities

61-

7

5.0

4.6-8%

Real Estate

82

194.4

5.2

17%

Total

224

872309Simulation as of the May 2019 Semi-Annual Index Review* Pro forma constituents for the MSCI Japan Empowering (WIN) Index as of the May 2019 Semi-Annual Index Review

5Discussion point• Do you agree with the proposed change of the investment universe
from the MSCI Japan IMI Top 500 to the MSCI Japan IMI Top 700?

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Appendix

7

ESG metrics (June 2019)

Integration
Key Integration Metrics
ESG Score
ESG Leaders (AAA-AA) (%)
ESG Laggards (B-CCC) (%)
ESG Trend Positive (%)
ESG Trend Negative (%)
ESG Pillars
Environmental Score
Social Score
Governance Score
Key Governance Metrics
Gender Diversity Score
Lack of Independent Board Majority (%)
Deviation from One Share One Vote (%)
No Female Directors (%)
ValuesTobacco Producers (%)
Civilian Firearms Producers (%)
Ties to Controversial Weapons (%)
Global Compact Compliance Violation or Watch List (%)
Red Flag Controversies (%)
Orange Flag Controversies (%)

MSCI Japan IMI Top
500

MSCI Japan IMI Top
700

MSCI Japan
Empowering Women(WIN) Index

MSCI Japan Empowering
Women (WIN) Index Simulated with Top 700

5.5
17.1
8.7
13.1
6.4

5.5
16.6
9.5
12.8
6.6

6.4
30.2
2.3
8.6
5.0

6.3
29.1
2.6
8.0
4.7

5.6
5.1
4.1

5.6
5.0
4.1

6.0
5.5
4.4

5.9
5.5
4.4

5.9
84.3
2.7
36.3

5.8
84.2
2.6
37.1

7.3
85.0
3.0
20.8

7.2
82.5
2.3
20.8

0.7
0.1
0.0
3.0
0.2
11.5

0.7
0.1
0.0
2.8
0.2
11.0

0.0
0.2
0.0
0.0
0.0
4.4

0.0
0.2
0.0
0.0
0.0
4.2

As of 28-Jun-2019

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