October 15, 2026

The Government Pension Investment Fund, Japan (GPIF) has published the "2025 Sustainability Investment Report" as a way of reporting on GPIF's sustainability-related initiatives, including Environmental, Social, and Governance (ESG), and the effects thereof to all pension beneficiaries and other stakeholders.
　In the 2025 Sustainability Investment Report, the chapter structure was revised to reflect the Sustainability Investment Policy established in March 2025. Specifically, we have more clearly articulated our efforts to enhance the long-term performance of GPIF's entire portfolio by achieving both "reduction of sustainability-related risks and improvement of sustainability of markets" and "securing of market average return" through a combination of various approaches to sustainability investment, rather than relying on ESG index investment as the main strategy as in the past.
　This report introduces GPIF's sustainability investment initiatives in FY2025; an overview of the research study on impact investing, conducted as the first step in exploring "investments that take impact into account" an approach set forth in the FY2025 Annual Plan, as well as the restructuring of ESG investments. It also introduces stewardship activities, including dialogue with asset managers.
　In addition, we brought the previously outsourced Climate VaR analysis and Implied Temperature Rise analysis in-house, with a view to incorporating sustainability-related risk analysis into the PDCA cycle for future sustainability investment.

Sustainability Investment Report 2025 Key Contents

Chapter 1: What Is Sustainability Investment at GPIF?

Interview with the President
What Is Sustainability Investment at GPIF?
History of Sustainability Investment Initiatives at GPIF
Governance and Organizational Structure Related to Sustainability Investment
Sustainability Initiatives within GPIF

Chapter 2: Investment Considering ESG and Impact

Rebuilding ESG Investment
Performance of ESG Index Funds
Measuring the Effects of ESG Index-Based Investment
Sustainability in Equity and Fixed Income Mandate
Sustainability in Alternative Investments
Research on Impact Investing

Chapter 3: Stewardship Activities

Dialogue with Asset Managers
Companies' Evaluation of Engagement by Asset Managers
Dialogue with Index Providers and ESG Rating Agencies

Chapter 4: Sustainability-Related Risk Analysis

Portfolio ESG Ratings, ESG Rating Rankings by Country, and Correlation Between ESG Ratings
Analysis of Portfolio Greenhouse Gas Emissions
Financial Impact -- Climate VaR Analysis --
Impact on the Environment and Climate -- Implied Temperature Rise Analysis --

Chapter 5: Sustainability-Related Public Communication, Dialogue and Collaboration with Related Organizations, etc.

GPIF's Public Communication
"Excellent Sustainability Disclosures" Selected by GPIF's Equity Asset Managers
Corporate Perceptions of Investors' Interests and Use of Sustainability Disclosures
10th Anniversary of Our Survey of Companies
Dialogue and Collaboration with Related Organizations, etc.

Conclusion

Message from the CIO

Comment by UCHIDA Kazuto, President of GPIF

GPIF is a "cross-generational investor" dedicated to stabilizing pension finances, not only for today's working generation but also for the generations to come, and a "universal owner" that invests broadly across global capital markets. We believe that the sustainable and stable growth of the overall capital markets and economy is essential for GPIF to earn stable investment returns over the long term for the benefit of insureds. From this perspective, it is GPIF's responsibility to reduce sustainability related risks and enhance the sustainability of the overall market. Last year, GPIF established its Sustainability Investment Policy as part of its efforts to evolve ESG investment into the broader concept of sustainability investment.
　We believe that FY2025 was an important year for GPIF, in which we were able to clearly articulate the objectives and conceptual framework of our sustainability investment, outline specific initiatives, and take a step forward in advancing our previous ESG investment approach.
　In promoting sustainability investment, GPIF places particular importance on promoting a virtuous cycle in the investment chain. Our objective is to contribute to the sustainable growth of investee companies and the market as a whole, and thereby fulfill our responsibilities as an asset owner, by engaging with the entire investment chain, from asset managers to investee companies and index providers.
　Through this report, we aim to provide a comprehensive account of GPIF's approach to sustainability investment, our initiatives, and their impact, thereby fulfilling our accountability to insureds regarding sustainability investment and contributing to a virtuous cycle in the investment chain.
　Accordingly, this report covers a wide range of themes that may serve as useful references not only for asset owners, asset managers, and index providers, but also for companies.
　We hope that these insights will be of some use in your sustainability information disclosure and engagement activities.

Sustainability Investment Report 2025 (For Viewing) [PDF:7.6MB]

Sustainability Investment Report 2025 (For Printing) [PDF:7.7MB]