World’s largest pension fund joins the PRI
The PRI is delighted to welcome Japan’s Government Pension Investment Fund (GPIF) as a signatory to the six Principles for Responsible Investment. Japanese Prime Minister Shinzo Abe announced the move in a speech at the UN assembly meeting on 27 September, saying: “This will surely contribute to the achievement of sustainable development”.
GPIF, the world’s largest pension fund with approximately Y137.5 trillion (US$1.14 trillion), bases its perspective on ESG issues on its Investment Principles, which state: “By fulfilling our stewardship responsibilities, we shall continue to maximise medium- to long-term equity investment returns for the benefit of pension recipients.”
GPIF have already undertaken various measures in accordance with Japan’s Stewardship Code.
“It is our belief that considering environment, social and governance (ESG) issues properly will lead to increase in corporate value, foster sustainable growth of the investee companies, and enhance the medium- to long-term investment return for the pension recipients,” GPIF said on signing the Principles.
PRI Managing Director Fiona Reynolds said: “We welcome GPIF becoming a signatory to the PRI. A focus on Asia is a key part of the PRI’s three-year strategy, and GPIF signing the Principles will make others in the region take notice of responsible investment. Prime Minister Abe announcing the news to the United Nations demonstrates the significance of this announcement not just in Japan but worldwide”.
The fund has developed an Action Plan marking planned activities against each of the six Principles, including stating that: “The GPIF will ask external asset managers whether they are signatories to the PRI, and will ask the signatories to report their ESG activities and the non-signatories to explain the reason for not signing”.
For more details, see the GPIF website (http://www.gpif.go.jp/en/about/pdf/description_for_investment_principles.pdf)