GPIF and KfW launch initiative to promote Green Bonds
March, 24, 2020
Government Pension Investment Fund (GPIF) and KfW (Kreditanstalt für Wiederaufbau) have recently formed a partnership to promote and develop sustainable capital markets through a focus on Green Bonds, as well as the incorporation of ESG assessments in fixed income investments.
KfW, Germany's flagship promotional bank, is one of the largest issuers of green bonds globally. "Green Bonds - Made by KfW" are issued in alignment with the Green Bond Principles, which are administered by the International Capital Market Association (ICMA). From now on, "Green Bonds - Made by KfW" are newly integrated into GPIF's universe of ESG investment opportunities which GPIF allows its asset managers to invest in. GPIF's ambition is to contribute to a sustainable society.
＜Comment by Hiro Mizuno, Executive MD and CIO of GPIF＞
This is our first partnership with a government finance agency. We would like to leverage the success with multinational development banks in green, social and sustainability bonds partnerships in hopes to expand this to other platforms. GPIF requires all asset managers to integrate ESG into their investment analysis and decision-making. We regard purchase of Green, Social and Sustainability Bonds as one of the direct methods of ESG integration in the fixed income investment. KfW has played a key role in making the green bonds more mainstream and more attractive as one of the largest issuers globally. GPIF values KfW's expertise as an issuer and also as a green bond investor.
＜Comment by Dr Frank Czichowski, Senior Vice President and Treasurer of KfW＞
It is our ambition as a state-owned agency to boost responsible investments and to promote environmental investments via capital markets. We want to support the transition to a low carbon economy. KfW believes that green bonds are an appropriate instrument to do so. Therefore, since 2014 we have been actively supporting the green bond market as an issuer of green bonds, as a vocal advocate of the green bond market, and, since 2015, as an investor in green bonds. We are very honoured and delighted being the first government finance agency to team up with the world's largest pension fund to align our global efforts in promoting sustainable finance.
＜Link to the Principles and Guidelines for Green, Social and Sustainability Bonds＞
＜Link to KfW's Green Bond Framework 2019 and other information on "Green Bonds - Made by KfW"＞