The firm, part of the international index provider, has expanded coverage showing how well or poorly Japanese firms shape up over the environment.

Trucost, part of S&P Dow Jones Indices, has expanded its environmental analysis of Japan’s listed companies to more than 1,500 companies, tapping into perceived investor hunger for information about whether firms help or hurt the environment. 

Investors can assess the carbon emissions, water dependency, waste disposal and other pollution impacts of companies representing 98 per cent of Japan’s market capitalization, Trucost said in a statement yesterday. 

Some 84 per cent of operational carbon emissions are disclosed on the S&P/TOPIX 150 index, versus 65 per cent on the S&P Japan BMI benchmark of businesses, it said. Larger firms disclose more environmental data than their smaller peers: 87 per cent of the 150 companies listed on the S&P/TOPIX 150 index disclosing operational carbon emissions, versus 21 per cent of the 1,669 companies listed on the S&P Japan BMI (which tracks smaller organsations). 

Disclosure of operational water dependency and waste disposal is lower; only 15 per cent and 17 per cent of companies listed on the S&P Japan BMI disclosed these impacts respectively, representing 44 per cent and 51 per cent of total impact, respectively. 

“Trucost’s environmental analysis helps meet market demand for better data disclosure and visibility on how companies are responding to the energy transition, as well as other environmental challenges,” Alex Matturri, CEO, S&P Dow Jones Indices, said.