GPIF Publishes the 2022 ESG Report
September 25, 2023
Government Pension Investment Fund, Japan (GPIF) has published the ESG Report 2022 as a way of reporting on GPIF's Environmental, Social, and Governance-related initiatives and the effects thereof to all pension beneficiaries and other stakeholders. In addition to a review of GPIF's ESG initiatives for FY2022 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 analysis of avoided emissions based on the bottom-up approach, (2) analysis on measuring the impact of projects funded using ESG Bonds in GPIF's Portfolio, and others. Also we conducted a trial analysis concerning natural capital, including biodiversity, based on the Taskforce on Nature-related Financial Disclosures (TNFD) analysis framework.
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.
From this ESG Report, we have decided not to compile the "Analysis of Climate Change-Related Risks and Opportunities in the GPIF Portfolio" a supplementary guide to the ESG Report, incorporating the detailed analysis previously presented in the supplementary guide into the body of this report. The final reports of the companies to which we commissioned the TCFD related analysis have been published at the bottom of this page. Please also refer to these reports in conjunction with the ESG Report 2022.
〈ESG Report 2022 Key Contents〉
Chapter 1: GPIF's ESG Initiatives
ESG Index Adoption and ESG Index-Based Asset Management
Engagement with Index Providers and ESG Ratings Agencies
ESG in Equity and Fixed Income Mandate
Stewardship Activities and ESG Promotion
ESG in Alternative Asset Management
Implementation of a High-Level Study on the Integration of ESG and SDGs in Investment
Academic Research Related to GPIF's Stewardship Activities and ESG Investment
Measuring the Effects of Stewardship Activities and ESG Investment
Review of ESG Activities and Future Outlook
Chapter 2: Measuring the Effects of ESG Activities
ESG Index Performance
Portfolio ESG Rating, ESG Rating Ranking by Country, and Correlation Between ESG Ratings
Gender Diversity in Japanese Companies
Chapter 3: Evaluation and Analysis of Climate Change Risks and Opportunities
Analysis of Portfolio Greenhouse Gas Emissions
Analysis of the Status of GHG Information Disclosure and Target Setting
Implied Temperature Rise Analysis
Analysis of Real Estate Portfolio Using Climate Value-at-Risk
Analysis of Avoided Emissions Based on the Bottom-up Approach
Measuring the Impact of Projects Funded Using ESG Bonds in GPIF's Portfolio
Nature-Related Risks including Biodiversity and TNFD Trial Analysis
〈Comment by MIYAZONO Masataka, President of GPIF〉
GPIF believes that considering ESG in our investments is the 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 engaging in a broad array of ESG-related initiatives ever since.
I feel that we need to address an increasingly diverse and extensive range of ESG factors, such as climate change, supply chain, and human resources, etc., each passing year. This change is too profound to be characterized simply as a trend; rather, we assume it reflects the increasing number of serious environmental and social issues that must be considered. With this in mind, for this year's ESG Report, we have expanded our scope of our analysis to measuring the impact of projects funded using ESG bonds and conducted a trial analysis on natural capital, including biodiversity, based on the TNFD analysis framework.
However, these issues affect assets under management to a varying degree depending on the theme. Moreover, since GPIF mainly relies on external asset managers, there are only some issues that we can address effectively. Based on the above understanding, we would like to remain constantly alert to the various issues that are gaining attention among the public and work to gather information on them.
ESG REPORT 2022(For Viewing) [PDF:2.7MB]
ESG REPORT 2022(For Printing) [PDF:3.3MB]