ESG Viewpoint:
JPX Market Innovation & Research, Inc.
# Interview with Mr. Takahiro Miura, Director, Index Business, JPX Market Innovation & Research, Inc.
# March 2024
1. RepRisk: Please provide a few details about your role at JPX Market Innovation & Research, Inc. and the scope of work that you and your team are responsible for.
Takahiro Miura: JPX Market Innovation & Research, Inc. (JPXI) Index Business Department is responsible for developing and managing various indices within the Japan Exchange Group (JPX), including stock price indices. These include a wide variety of indices such as TOPIX, which indicates the overall movement of the Japanese stock market, the JPX-Nikkei Index 400 calculated with Nikkei Inc., and the S&P/JPX Carbon Efficient Index calculated with S&P Dow Jones Indices.
By providing these various indices, we strive to assist domestic and foreign investors in building their ideal portfolios, which in turn will enhance the attractiveness of the multiple markets operated by JPX.
2. RR: Can you provide insights into how the partnership between JPXI and RepRisk came about, and what motivated JPXI to integrate RepRisk data into the monitoring of JPX-Nikkei Index 400 and JPX-Nikkei Mid and Small Cap Index?
TM: The key concept of these two indices is that the stock index should be composed of companies with high appeal for investors, which meet requirements of global investment standards, such as efficient use of capital and investor-focused management perspectives.
In order to realize the concept, together with Nikkei, Inc., we have released the Calculation Methods, which include criteria for selecting constituents in the annual regular selection and regulations related to the continuous monitoring of the eligibility of constituents after selection.
As part of this regular selection and constant monitoring, we use quantitative information provided by RepRisk’s ESG Risk Platform, which leads to objective decision-making as an index provider.