Daikoku Sangyo First Selected for Global ESG Investment Index 'FTSE4Good Index Series'

Daikoku Sangyo Co., Ltd. (Headquarters: Minato-ku, Tokyo; President, CEO: Kei Takeuchi) has been selected for the first time as a constituent stock of the global ESG (Environmental, Social, and Governance) investment index 'FTSE4Good Index Series.'

At the same time, the company has also been reselected for two domestic ESG investment indices adopted by the Government Pension Investment Fund (GPIF): the 'FTSE JPX Blossom Japan Index' and the 'FTSE JPX Blossom Japan Sector Relative Index.' The company's 'FTSE ESG Rating' score has improved from the previous 3.4 to 3.6 (out of 5).

These indices are developed by FTSE Russell, a global index provider, and are designed to measure the performance of companies demonstrating strong ESG practices. The selection criteria are based on a rigorous evaluation model aligned with international standards, including the United Nations Sustainable Development Goals (SDGs).

In particular, the 'FTSE4Good Index Series,' newly selected this time, is a leading international sustainability index that sets very high ESG standards for major global corporations. Meanwhile, the 'FTSE JPX Blossom Japan Index' and 'FTSE JPX Blossom Japan Sector Relative Index,' which target Japanese companies, are widely used as key benchmarks for ESG investing in Japan.

This first-time inclusion in a globally recognized index, along with the overall score improvement, is seen as recognition that the company's series of ESG initiatives have evolved to a very high level under international standards. Specifically, the company believes that enhanced climate change responses, the promotion of human capital management supporting employee growth and engagement, strengthened effective corporate governance, and initiatives such as solving regional issues through its buy-renovate-resell business have contributed to the improved evaluation.

Daikoku Sangyo will further strengthen its initiatives across environmental, social, and governance domains following this selection, aiming to contribute to the realization of a sustainable society and enhance long-term corporate value.

[Related Information]

FTSE Blossom Index Series Official Website

https://www.lseg.com/en/ftse-russell/indices/blossom-japan

Daikoku Sangyo Group Integrated Report 2025

https://www.kentaku.co.jp/ir/library/integrated-report/

Daikoku Sangyo Group ESG Data Sheet 2025

https://www.kentaku.co.jp/ir/library/integrated-report/pdf/esg-data_sheet2025.pdf

Daikoku Sangyo Group Sustainability Report 2025

https://www.kentaku.co.jp/sustainability/library/report/

[Related News Releases]

Daikoku Sangyo First Selected for FTSE JPX Blossom Japan Index (January 29, 2026)

https://www.kentaku.co.jp/news/release/2025/release_FTSE_20260129.html

[Overview of Each Index]

About FTSE4Good Index Series (Selected for the first time as a constituent)

The FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indexes are used by a wide variety of market participants to create and assess responsible investment funds and other products.

FTSE Russell evaluations are based on performance in areas such as Corporate Governance, Health & Safety, Anti-Corruption and Climate Change. Businesses included in the FTSE4Good Index Series meet a variety of environmental, social and governance criteria.

(Reference translation: The FTSE4Good Index Series aims to measure the performance of companies that strongly demonstrate ESG practices. FTSE4Good indices are used by various market participants to create and evaluate responsible investment funds and other products. FTSE Russell's evaluations are based on performance in areas such as corporate governance, health and safety, anti-corruption, and climate change. Companies included in the FTSE4Good Index Series meet various environmental, social, and governance criteria.)

<Website> https://www.lseg.com/en/ftse-russell/indices/ftse4good

About FTSE JPX Blossom Japan Index (Continuously selected since 2025)

The FTSE JPX Blossom Japan Index is designed to measure the performance of companies that take specific actions regarding environmental, social, and governance (ESG) factors. It is widely used for creating and evaluating sustainable investment funds and other financial products.

FTSE Russell's evaluations are conducted in areas such as corporate governance, health and safety, anti-corruption, and climate change, and companies meeting various ESG criteria are selected.

<Website> https://www.lseg.com/en/ftse-russell/indices/blossom-japan

About FTSE JPX Blossom Japan Sector Relative Index (Continuously selected since 2022)

The FTSE JPX Blossom Japan Sector Relative Index is an index that reflects the performance of Japanese companies that relatively demonstrate specific ESG actions within each sector, maintaining sector neutrality.