Evaluations by Society

The FTSE Blossom Japan Sector Relative Index is an investment index constructed by FTSE Russell, a global index provider, that reflects the performance of Japanese companies with superior environmental, social, and governance (ESG) responsiveness relative to their peers in their respective sectors. In selecting stocks, Russell assesses the quality of companies' management of greenhouse gas emissions and their response to the risks and opportunities associated with the transition to a low-carbon economy, in line with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).

The Index has also been adopted as one of the investment criteria by the General Pension Investment Fund (GPIF), which actively promotes ESG investment.

• * FTSE Russell (a registered trademark of FTSE International Limited and Frank Russell Company) hereby certifies that CITIZEN WATCH has met the requirements for inclusion in the FTSE Blossom Japan Sector Relative Index as a result of an independent investigation. The FTSE Blossom Japan Sector Relative Index is widely used to create and evaluate sustainable investment funds and other financial products.

Since December 2019, we have been included in the FTSE Blossom Japan Index. Created by the global index 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 has been selected by the Government Pension Investment Fund (GPIF) of Japan as an index for use in ESG investment.

The MSCI Japan ESG Select Leaders Index is a selection of companies with relatively high ESG ratings from each industry among the constituents of the parent index (MSCI Japan IMI Index) created by Morgan Stanley Capital International (MSCI) of the United States.

This index is one of the indices adopted by the General Pension Investment Fund (GPIF), the world's largest pension fund management organization, for ESG investment, and CITIZEN WATCH has been selected as a constituent since December 2023.

• * The inclusion of CITIZEN WATCH Co., Ltd. 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 CITIZEN WATCH Co., Ltd. by MSCI or any of its affiliates. The MSCI indexes are the exclusive property of MSCI. The MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.

MSCI Japan Empowering Women Index (WIN) is a stock price index constructed by MSCI for companies with excellent gender diversity. The GPIF has selected this index for ESG investment, and CITIZEN WATCH has been included in the MSCI Japan Empowering Women Index (WIN) since June 2017.

• * The inclusion of CITIZEN WATCH Co., Ltd. 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 CITIZEN WATCH company, ltd. 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.

We have been included in the S&P/JPX Carbon Efficient Index. The index is designed by S&P Dow Jones Index, one of the world’s largest independent index providers, to measure the performance of companies in the Tokyo Stock Price Index (TOPIX), a stock price index representative of the Japanese market (the “underlying index”). The index is weighted based on the levels of environmental information disclosure and carbon efficiency (carbon emissions per unit of sales), and one of the indices selected by the General Pension Investment Fund (GPIF) for ESG investment.

We have been included in CDP’s supplier engagement as Supplier Engagement Leader, the highest evaluation, for FY2023, following our selection in FY2022.

Since 2017, we have been included in the SOMPO Sustainability Index (previously known as the SNAM Sustainability Index). The SOMPO Sustainability Index is a stock index developed independently by Sompo Asset Management (previously known as Sompo Japan Nipponkoa Asset Management) by combining the ESG evaluation with a stock price evaluation.

In March 2024, CITIZEN WATCH was recognized as one of the “Health and Productivity Management Outstanding Corporations 2024” (large corporation category, White 500) selected by the Ministry of Economy, Trade and Industry and the Nippon Kenko Kaigi.

The certification system for Health and Productivity Management Outstanding Corporations is a system that recognizes companies and corporations that practice particularly excellent health management based on initiatives tailored to local health issues and health promotion initiatives promoted by the Nippon Kenko Kaigi. White 500 is a title given to the top 500 companies in the large corporate category among companies that have received the award. CITIZEN WATCH has been certified as one of the Health and Productivity Management Outstanding Corporations (large corporation category) since FY2019.

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In April 2023, Citizen Watch Co., Ltd. received the "Excellent Stage 1" (Level 2 out of 5) certification under the Social and Environmental Green Evaluation System (SEGES), operated by the Organization for Landscape and Urban Green Infrastructure. The planning, design, and maintenance of green spaces from the perspective of improving employee wellness and enhancing the local environment were highly evaluated.

About SEGES

SEGES evaluates initiatives and activities for the conservation, creation, and utilization of green spaces on corporate premises and land. It assesses efforts to mitigate the heat island effect, improve landscapes, and conserve biodiversity, as well as social contributions such as promoting environmental education, providing public green spaces, and offering recreational areas. This evaluation system is not only listed in the "Low-Carbon City Development Practice Handbook" and the "Guidelines for Developing Basic Green Plans Considering Biodiversity" by the Ministry of Land, Infrastructure, Transport and Tourism, but it also participates as a core member of the "30by30 Alliance" aimed at promoting the main goal of the "Kunming-Montreal Global Biodiversity Framework," "30by30."

• SEGES (Social and Environmental Green Evaluation System)

"CITIZEN Forest Office," which aims to be a place that enhances productivity and health throughout the site based on the concept of “work both indoors and outdoors," received the Good Design Award for 2021, which was sponsored by the Japan Institute of Design Promotion.

CITIZEN MACHINERY received the Shinshu SDGs Award 2023, sponsored by Nagano Prefecture, which recognizes outstanding initiatives in the prefecture that contribute to the achievement of the Sustainable Development Goals (SDGs).

The Shinshu SDGs Award is presented to companies, municipalities, and organizations that have made outstanding efforts to achieve the SDGs, which involve the promotion of initiatives by diverse stakeholders, the continued implementation of SDG measures in Nagano Prefecture, and the further dissemination and expansion of SDG initiatives.