Acknowledgment as a Sustainable Company

The LY Corporation Group’s ESG and sustainability initiatives are highly rated by both Japanese and international ESG evaluation organizations, and LY Corporation (the “Company”) is selected as a constituent of various ESG indices.
The Company is now included in all six ESG indices*¹ for Japanese equities adopted by Japan’s Government Pension Investment Fund (GPIF).

*¹ MSCI Nihonkabu ESG Select Leaders Index, MSCI Empowering Women Index (WIN), FTSE Blossom Japan Index, FTSE Blossom Japan Sector Relative Index, S&P/JPX Carbon Efficient Index and Morningstar® Japan ex-REIT Gender Diversity Tilt Index^SM

Inclusion in ESG Indices

MSCI Nihonkabu ESG Select Leaders Index*²

An index designed to select companies that excel in ESG (Environment, Social and Governance) initiatives.

MSCI Nihonkabu ESG Select Leaders Index (external website)

MSCI Japan Empowering Women Index (WIN)*²

An index developed by selecting companies that promote and maintain higher levels of gender diversity.

MSCI Japan Empowering Women Index (WIN) (external website)

*² THE INCLUSION OF LY CORPORATION IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF LY CORPORATION BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

Dow Jones Sustainability World Index (DJSI World)

Dow Jones Sustainability Asia Pacific Index (DJSI Asia Pacific)

For the fourth year in a row, LY Corporation has been selected as a component of the Dow Jones Sustainability World Index, one of the leading global indices of ESG investment, and the Dow Jones Sustainability Asia Pacific Index.
The Dow Jones Sustainability Indices were developed as the pioneering series of global sustainability indices. Based on long-term shareholder value, the indices make a comprehensive analysis of environmental, social, and governance practices of listed companies in the world, and select leading sustainable companies.

LY Corporation Included in Dow Jones Sustainability World Index (DJSI World) for Fourth Consecutive Year (press release)

FTSE4Good Index Series

FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that LY Corporation has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess sustainable investment funds and other products.

FTSE4Good Index Series (external website)

FTSE Blossom Japan Index

FTSE Russell (trademark of FTSE International Limited and Frank Russell Company) confirms that LY Corporation has been independently assessed according to the index criteria, and has satisfied the requirements to become a constituent of the FTSE Blossom Japan Index. Created by the global index and data provider FTSE Russell, the FTSE Blossom Japan Index is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE Blossom Japan Index is used by a wide variety of market participants to create and assess sustainable investment funds and other products.

FTSE Blossom Japan Sector Relative Index

FTSE Russell confirms that LY Corporation has been independently assessed according to the index criteria, and has satisfied the requirements to become a constituent of the FTSE Blossom Japan Sector Relative Index. The FTSE Blossom Japan Sector Relative Index is used by a wide variety of market participants to create and assess responsible investment funds and other products.

FTSE Blossom Japan Index Series (external website)

S&P/JPX Carbon Efficient Index

An index that decides the weight of constituents based on the environmental disclosures and carbon efficiency (carbon emissions per unit of revenue)

S&P/JPX Carbon Efficient Index (external website)

Morningstar® Japan ex-REIT Gender Diversity Tilt Index^SM

Built with the data and scoring methodology of Equileap, the index is designed to emphasize the stocks of companies that have strong gender diversity policies embedded in their corporate culture and that ensure equal opportunities to employees, irrespective of their gender. Constituents are divided into five groups based on their scores. LY Corporation was rated “Group 1,” the highest of the five levels.

Morningstar® Japan ex-REIT Gender Diversity Tilt Index^SM (external website)

Morningstar, Inc., and/or one of its affiliated companies (individually and collectively, "Morningstar") has authorized LY Corporation to use of the Morningstar Japan ex-REIT Gender Diversity Tilt Logo ("Logo") to reflect the fact that, for the designated ranking year, LY Corporation ranks in the top group of companies comprising the Morningstar® Japan ex-REIT Gender Diversity Tilt Index^SM ("Index") on the issue of gender diversity in the workplace. Morningstar is making the Logo available for use by LY Corporation for informational purposes. LY Corporation use of the Logo should not be construed as an endorsement by Morningstar of LY Corporation or as a recommendation, offer or solicitation to purchase, sell or underwrite any security associated with LY Corporation. The Index is designed to reflect gender diversity in the workplace in Japan, but Morningstar does not guarantee the accuracy, completeness or timeliness of the Index or any data included in it. Morningstar makes no express or implied warranties regarding the Index or the Logo, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the Index, any data included in it or the Logo. Without limiting any of the foregoing, in no event shall Morningstar or any of its third party content providers have any liability for any damages (whether direct or indirect), arising from any party's use or reliance on the Index or the Logo, even if Morningstar is notified of the possibility of such damages. The Morningstar name, Index name and the Logo are the trademarks or services marks of Morningstar, Inc. Past performance is no guarantee of future results.

Acknowledgement as a Sustainable Company

LY Corporation Receives the Highest Rating of AAA in the MSCI ESG Rating

LY Corporation has received the highest rating of "AAA" for the third year in a row in the MSCI ESG Rating as of August 2023.

THE USE BY LY CORPORATION OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES ("MSCI") DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF LY CORPORATION BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED 'AS-IS' AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.

CDP

The LY Corporation Group discloses information on its environmental impact to CDP, an international NGO that runs a global information disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.
LY Corporation was awarded an A- score in climate change action in 2023.

CDP Japan (external website)

ISS ESG Corporate Rating

LY Corporation received the "Prime" status in the ESG Corporate Rating of ISS ESG (the responsible investment arm of Institutional Shareholder Services Inc.). Prime status is attributed to those companies with an overall rating/ESG performance above the sector-specific Prime threshold, which means that they fulfil ambitious absolute performance requirements.

ISS ESG (external website)

Selected in the Large Enterprise Category (White 500) of the 2024 Certified KENKO Investment for Health Outstanding Organizations Recognition Program

left: SHealth & Productivity Stock Selection 2024 right: 2022 Certified Health and Productivity Management Organization Recognition Program, Large Enterprise Category (White 500)

LY Corporation was selected in the large enterprise category (White 500) of the 2024 Certified KENKO Investment for Health Outstanding Organizations Recognition Program by Japan's Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi.
LY Corporation firmly believes that ensuring the optimal well-being of its employees, both physically and mentally, is the key to achieving the best possible performance while promoting greater happiness for the employees and their families. The Company aims to create an environment where all employees can carry out their work in optimal physical and mental condition.

Note: “Kenkokeiei (KENKO Investment for Health)” is a registered trademark of the Nonprofit Organization Kenkokeiei.

Promotion of Health and Productivity Management