GPIF Publishes the FY2020 ESG Report
September 30, 2021
Government Pension Investment Fund, Japan (GPIF) has published the ESG Report 2020 as a way of reporting on GPIF's Environmental, Social and Governance-related initiatives and the effects thereof to all pension beneficiaries. This report marks GPIF's fourth ESG Report. In addition to a review of GPIF's ESG initiatives for FY2020 and ESG-based evaluation of the fund's portfolio, this year's report includes an enhanced analysis based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Specifically, we (1) include the entire supply chain in our greenhouse gas emissions analysis; (2) expand the analysis to include not only traditional asset classes but also alternative asset classes; and (3) provide an analysis of inter-industry transfer of opportunities and risks accompanying the transition to a low-carbon society.
GPIF will continue to assess whether our ESG activities are having the intended effect of improving the sustainability of financial markets and risk-adjusted returns, and hope this leads to a verification of the long-term effects thereof.
ESG Report 2020 Key Contents
Chapter 1: GPIF's ESG Initiatives
ESG Index Selection and ESG Index-Based Asset Management
ESG in External Equity and Fixed Income Management
Stewardship Activities and ESG Promotion
Engagement with Index Providers and ESG ratings agencies
ESG in Alternative Asset Management
Review of ESG Activities and Future Outlook
Chapter 2: Measuring the Impacts of ESG Activities
ESG Index Performance
Portfolio ESG Rating
ESG Rating Ranking by Country
Gender Diversity in Japanese Companies
Chapter 3: Evaluation and Analysis of Climate Change Risks and Opportunities
Disclosure and Analysis of Climate-Related Financial Information: Composition and Key Points
Analysis of Portfolio Greenhouse Gas Emissions
Portfolio Analysis Using Climate Value-at-Risk, etc.
Analysis of Inter-Industry Transfer of Transition Risks and Opportunities
Analysis of Revenue Opportunities through Contributions to SDGs
〈Comment by MIYAZONO Masataka, President of GPIF〉
GPIF believes that considering ESG in our investments is key to making the Pension Reserve Fund more sustainable. As such, we became a signatory to the Principles for Responsible Investment (PRI) in 2015, and have been engaged in a broad array of ESG-related initiatives ever since. This year's report builds on previous years by, for example, expanding the scope of our analyses and widening the range of greenhouse gas emissions measured in our disclosures related to climate change risks and opportunities - an issue of increasing importance. We also included a forward-looking analysis of the transfer of risks and opportunities between industries expected to occur as we shift toward a low-carbon society. We hope that these initiatives provide motivation for other asset owners and asset managers in their own disclosures.