March 23, 2022

Excellent TCFD Disclosure Selected by GPIF’s Asset Managers
Entrusted with Domestic Equity Investment
Government Pension Investment Fund (GPIF) requested its external asset managers entrustedwith domestic equity investment (hereinafter, “external asset managers”) to nominate “excellent TCFD
disclosure” as a new initiative based on the Corporate Governance Code revised last year.
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, 27 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(8) ◇ Mitsubishi UFJ Financial Group, Inc.

(5)

◇ RICOH COMPANY, LTD.

(5) ◇ Hitachi, Ltd.

(4)[Companies selected by GPIF’s external asset managers for excellent TCFD
disclosure]Code2502
2503
2678
2802
4005
4204
4307
4452
5020
6301
6367
6501
6702
6752

Company name
Asahi Group Holdings, Ltd.
Kirin Holdings Company, Limited
ASKUL Corporation
Ajinomoto Co., Inc.

SUMITOMO CHEMICAL COMPANY, LIMITED

Sekisui Chemical Co., Ltd.
Nomura Research Institute, Ltd.
Kao Corporation
ENEOS Holdings, Inc.
KOMATSU LTD.
DAIKIN INDUSTRIES,LTD.
Hitachi, Ltd.
FUJITSU LIMITED
Panasonic Corporation

Number ofnominations

Code281122322114216981
7203
7752
8001
8002
8058
8252
8306
8316
8411
8725
8766
9613

Company name
Murata Manufacturing Co., Ltd.
TOYOTA MOTOR CORPORATIONRICOH COMPANY,LTD.
ITOCHU Corporation
Marubeni Corporation
Mitsubishi Corporation
MARUI GROUP CO., LTD.
Mitsubishi UFJ Financial Group, Inc.
Sumitomo Mitsui Financial Group, Inc.
Mizuho Financial Group, Inc.
MS&AD Insurance Group Holdings, Inc.
Tokio Marine Holdings, Inc.
NTT DATA Corporation

Number ofnominations

1253231521111

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 werenominated 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 54, as listed on page 4. GPIF also requested its external asset managers entrustedwith foreign equity investment to nominate “excellent TCFD Disclosure”, the result of which is shownin GPIF’s English website.
(https://www.gpif.go.jp/en/investment/20220323_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 company was the only Japanese company selected among the 15 across the globe for an interview
conducted by TCFD for publication in the Practical Guide for Scenario Analysis. The company received
high evaluations in terms of advanced responses in all items.
・All items required by the TCFD recommendation are carefully disclosed. The descriptions convey thathighly effective governance is maintained by sharing the status of improvements and making annualanalyses more in-depth.
・The disclosure carefully explains the way of thinking toward risk management, the results of scenario
analysis and their reflection in strategies, etc. The company shares the progress of their indicators withcapital markets at the annual CSV briefing meeting. The company also discloses the amount ofinvestments to address the SBT 1.5℃ scenario and its impact on the profit-and-loss situation, aiming tohelp investors easily understand the impact on profit and loss and corporate value in response to climatechange.
・ Detailed and well-balanced disclosure was prepared concerning the four items in the TCFD
recommendation, clarifying the company’s policy and strategy to address the climate-related risks andopportunities. Additionally, in the scenario analyses, the company disclosed quantitative financial
impacts such as the impact of climate change on crop yields of major agricultural products andassessment of impacts of carbon pricing.
・The disclosure provides detailed analyses of the financial impact of risks and business opportunities
based on scenario analysis, which is a disclosure useful for estimating the degrees of the impacts.
・In the scenario analysis, the company analyzed financial impacts based on many drivers, describing
specific strategies to respond to them. Risks and opportunities are organized by theme, and multifaceted
analyses are also conducted.
・It is highly regarded that disclosure items in the TCFD recommendations are briefly summarized in thesummary section, and are described in detail on the reference pages to clarify their initiatives for climatechange issues.

〇 RICOH COMPANY, LTD.
・The company has pursued environmental management for a long time, ever since the establishment of
the Environmental Promotion Section in 1976. In its first-ever TCFD report, the company specificallyshowed that its environmental goals for decarbonization will be further strengthened, and that theinitiative could lead to business opportunities.
・The TCFD report provides comprehensive disclosure while presenting many actual examples.
・The TCFD report explains the initiatives in general for climate change in an easy-to-understand mannerby disclosing not only the items recommended by TCFD, but also the company’s history of addressing
climate change, measures and specific examples for achievement, and the impact on financial activities
as business opportunities.
・The company publishes a TCFD report specialized in the TCFD disclosure in addition to an integrated

2Copyright © 2022 Government Pension Investment Fund All rights reserved.

report, disclosing in detail the four items recommended by TCFD. Regarding governance, in addition tothe governance system in terms of ESG, the company discloses that the goals for reduction of GHGemissions are linked to the compensation of directors. The risk analysis of climate change shows thefinancial impact by including quantitative factors in a form of classifying the impacts into “Large” (50billion yen or more), “Medium” (several billion yen to 50 billion yen) and “Small” (several hundreds ofmillion yen), and explains each risk and opportunity in an easy-to-understand manner, such as by using
pictures. Furthermore, regarding the disclosure of risk management, the company explains showing not
only a diagram of the system, but also a diagram of their decision process for priority management risks.
Regarding Metrics and Targets, the company makes reference to Scope 3 and SBT, thus providing wellbalanced and high quality TCFD disclosure.

〇 Mitsubishi UFJ Financial Group, Inc.
・The company provided highly comprehensive information disclosure, being aware of the significance ofits own impact on climate change. The initiative for improvement of disclosure in the scenario analysis,
future action plans, and the TCFD disclosure as an asset manager are highly evaluated.
・The linkage among each pillar of the TCFD disclosure improved due to the progress of organizational
sophistication in many points such as a declaration of carbon neutrality and the strengthening of thesustainability promotion system. Additionally, the disclosure of metrics, targets and the actual results
was improved. The roadmap toward the creation of a declaration of carbon neutrality is also clearlyindicated, making the whole picture and timeline of the activity easy to understand.
・The company’s TCFD disclosure is excellent as a whole even relatively within the financial sector, andit is particularly so in terms of disclosure of “metrics and targets/actual results.” The disclosure ofopportunities and risks are well-balanced. Regarding opportunities, the targets for reducing CO 2
emissions through renewable energy project financing are also disclosed together with the targets forthe balance of sustainable financing. Regarding risks, in contrast to other megabanks that limit
disclosure to the balance of coal-fired power generation project financing, the company also discloses“carbon-related assets,” including corporate financing.
・The structure of the report is well organized with “Highlights of activities,” “Long-term vision” and “Reportin line with the disclosure items recommended by TCFD,” offering users easy access to necessary
information. The content’s consistency was highly evaluated, as each disclosure item recommended by
TCFD is developed based on the company’s “MUFG Carbon Neutrality Declaration” and the roadmap
for its achievement.

〇 Hitachi, Ltd.
・Business environment, risks and opportunities under the 1.5℃ and 4℃ scenarios are defined in detail,providing a sense of trust in the company’s long-term climate resilience. Advanced targets such as theintroduction of ICP aiming at decarbonization are described.
・The disclosure includes progress management of the Environmental Action Plan which is updated every
three years, and other disclosures of which the effectiveness can be assessed.
・There are many in-depth descriptions concerning all of the four items as observed in scenario analyses
broken down into business unit. We can confirm that the results of various analyses are also associatedwith strategic decision making, and this will contribute to investors’ decisions.

3Copyright © 2022 Government Pension Investment Fund All rights reserved.

[Companies selected by GPIF’s external asset managers for excellent disclosureof each four TCFD disclosure]Code1802
1803
1925
1928
2269
2502
2503
2607
2802
3086
3401
4005
4186
4204
4307
4452
5020
5401
5411
5713
6367
6501
6645
6702
6752
6762
6902

Company name
OBAYASHI CORPORATIONSHIMIZU CORPORATIONDAIWA HOUSE INDUSTRY CO., LTD.

Sekisui House, Ltd.
Meiji Holdings Co.,Ltd.
Asahi Group Holdings, Ltd.
Kirin Holdings Company, Limited
FUJI OIL HOLDINGS INC.
Ajinomoto Co., Inc.
J. FRONT RETAILING CO., LTD.
TEIJIN LIMITEDSUMITOMO CHEMICAL COMPANY, LIMITEDTOKYO OHKA KOGYO CO., LTD.
Sekisui Chemical Co., Ltd.
Nomura Research Institute, Ltd.
Kao Corporation
ENEOS Holdings, Inc.
NIPPON STEEL CORPORATION
JFE Holdings, Inc.
Sumitomo Metal Mining Co., Ltd.
DAIKIN INDUSTRIES,LTD.
Hitachi, Ltd.
OMRON Corporation
FUJITSU LIMITED
Panasonic Corporation
TDK CORPORATIONDENSO CORPORATION

Number of nominations
(1)

(2)

(3)

(4)

1112523211-

3123211141113221111121-

11211141111111

CodeCompany name

6971
6981
7203
7272
7752
8001
8002
8053
8058
8252
8306
8316
8411
8604
8725
8750
8766
9020
9086
9101
9104
9201
9432
9501
9508
9513
9613

KYOCERA Corporation
Murata Manufacturing Co., Ltd.
TOYOTA MOTOR CORPORATION
Yamaha Motor Co., Ltd.
RICOH COMPANY,LTD.
ITOCHU Corporation
Marubeni Corporation
Sumitomo Corporation
Mitsubishi Corporation
MARUI GROUP CO., LTD.
Mitsubishi UFJ Financial Group, Inc.
Sumitomo Mitsui Financial Group, Inc.
Mizuho Financial Group, Inc.
Nomura Holdings, Inc.
MS&AD Insurance Group Holdings, Inc.
Dai-ichi Life Holdings, Inc.
Tokio Marine Holdings, Inc.
East Japan Railway Company
Hitachi Transport System, Ltd.
Nippon Yusen Kabushiki Kaisha
Mitsui O.S.K. Lines, Ltd.
Japan Airlines Co., Ltd.
NIPPON TELEGRAPH AND TELEPHONE CORPORATIONTokyo Electric Pow er Company Holdings, Incorporated

Kyushu Electric Power Company, Incorporated

Electric Power Development Co., Ltd.
NTT DATA Corporation

Number of nominations
(1)

(2)

(3)

(4)

1
12
1
1
3
1
1111
1212
3
111111112122213111212111112
11211-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.

4Copyright © 2022 Government Pension Investment Fund All rights reserved.