GPIF and EBRD launch initiative to promote Green and Social Bonds
November, 5, 2019
Government Pension Investment Fund (GPIF) and European Bank for Reconstruction and Development (EBRD) have recently formed a partnership to promote and develop sustainable capital markets through a focus on Green Bonds and Social Bonds, as well as the incorporation of ESG assessments in fixed income investments.
EBRD's Green Bonds and Social Bonds are issued in alignment with the Green Bond Principles and Social Bond Principles, which are administered by the International Capital Market Association (ICMA). These bonds provide investment opportunities for GPIF asset managers to contribute to make a sustainable society.
＜Comment by Hiro Mizuno, Executive MD and CIO of GPIF＞
GPIF requires our asset managers to integrate ESG into their investment processes from analysis to the investment decision. We regard the purchase of Green, Social and Sustainability Bonds as one of the direct methods of ESG integration in fixed income investment. GPIF wishes to contribute to make Green, Social and Sustainability bonds mainstream investment products in order to ensure the sustainable performance of the pension reserve fund for all the generations.
＜Comment by Paulo Sousa, Acting Vice President and CFO, EBRD＞
We are delighted to partner with GPIF, whose important leadership serves to highlight how financial markets can support the urgent and necessary changes required for a transition to a green and sustainable economy. Japan is a key and significant founding shareholder of the EBRD, whose mandate explicitly requires investments in environmentally sound and sustainable development as well as in small and medium sized enterprises, which are the focus of projects underpinning EBRD's issuance of Green Bonds and Social Bonds.
＜Link to the Principles and Guidelines for Green, Social and Sustainability Bonds＞