The purpose of this paper is to identify the attributes that make Japanese corporations targets for ESG investment. The sample is based on a cross section of data from 1,013 Japanese corporations in 2015. A probit regression model is employed. The dependent variable is whether or not the firm is included in one of the three ESG indices: DJSI, FTSE4Good, and MS-SRI. The results show that there are positive correlations between whether a firm is included in the ESG indices and UNGC participation, as well as GRI application. Awareness of climate change, human rights due diligence, firm size, and debt ratio are also shown to affect whether or not a firm is counted in the ESG indices.
