External Evaluation

This socially responsible investment index was launched by FTSE International, Ltd., a subsidiary of the London Stock Exchange. The index is intended to foster investments in companies that are highly rated based on widely approved international criteria on corporate social responsibility.

• FTSE4Good Global Index

Included in this index are Japanese companies that are excellent in terms of ESG-related performance. This ESG index is designed to be industry-neutral by weighting based on the FTSE Japan Index (parent index).

• FTSE Blossom Japan Index

The new FTSE Blossom Japan Sector Relative Index is designed as a sector neutral benchmark that reflects the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices in Japan. The index selects companies with higher ESG Ratings within the top 50% of each sector and supports climate transition to a low carbon economy by evaluating companies’ climate governance and climate change efforts via the Transition Pathway Initiative’s Management Quality Score.

• FTSE Blossom Japan Sector Relative Index

Included in this index are companies that are highly rated for gender diversity among those included in the MSCI Japan IMI Top 500 Index (parent index).

• MSCI Japan Empowering Women Index (WIN)

• * THE INCLUSION OF SHOWA DENKO K.K. 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 SHOWA DENKO K.K. 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.

This index by S&P Dow Jones Indices and the Tokyo Stock Exchange overweights or underweights the companies comprising the index based on their disclosure of environmental information and the level of their carbon efficiency.

• S&P/JPX Carbon Efficient Index

Launched by Sompo Japan Nipponkoa Asset Management (SNAM), this index comprises companies highly rated for ESG and is utilized to enable the company to make sustainable investments.

• SNAM Sustainability Index

SDK has been promoting a good balance between employees’ work and family life so that employees with diversified backgrounds and lifestyles can continue working vigorously. SDK was certified by the health and labor minister as one of the good companies in Japan in this respect in 2008, 2013 and 2016.

SDK has been certified since 2017 by the Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi (Japan Health Conference) as a good corporation promoting employees’ health and productivity.

SDK was selected as one of the excellent companies in “Gomez ESG site ranking 2021.” The ranking evaluates user-friendliness and richness of content of websites that transmit ESG information.