GPIF Publishes the 2023 ESG Report
September 27, 2024
Government Pension Investment Fund, Japan (GPIF) has published the ESG Report 2023 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 FY2023 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 have included (1) Green Bond Greenium Analysis, (2) Scope 3 Disclosure analysis, and others. Also same as last year, 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.
For detailed analysis of Climate Change and Nature related risks, please refer to the final report of the companies to which we commissioned the TCFD related analysis in conjunction with the ESG Report 2023.
ESG Report 2023 Key Contents
Chapter 1: GPIF's ESG Initiatives
ESG Index-Based Equity Management
Column: Stocks Continuously Selected in ESG Indexes
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
Review of ESG Activities and Future Outlook
Chapter 2: Measuring the Effects of ESG and Stewardship Activities
ESG Index Performance
Portfolio ESG Rating, ESG Rating Ranking by Country, and Correlation Between ESG Ratings
Column: Analysis of ESG Factors
Topics: Evaluation Project on the Effects of Engagement -- Project Overview and Analysis --
Chapter 3: Evaluation and Analysis of Climate Change Risks and Opportunities
Analysis of Portfolio Greenhouse Gas Emissions
Financial Impact -- CVaR Analysis --
Green Bond Greenium Analysis
Analysis of the Status of GHG Emissions Reduction Targets
Current Status and Agenda of Increasingly Prominent Scope 3 Disclosures
Impact on the Environment and Climate -- ITR Analysis --
Biodiversity -- TNFD 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.
With this report, we conducted an analysis on Scope 3 Disclosure based on International Sustainability Standards Board (ISSB), "Evaluation Project on the Effects of Engagement "which quantitative assessment is difficult to conduct, and Biodiversity.
We reported these themes that can be referred by asset owners and managers, as well as IR and sustainability related departments in corporations. I hope you can utilize them for the time of ESG Information disclosure and engagements.
ESG REPORT 2023(For Viewing) [PDF:4.0MB]
ESG REPORT 2023(For Printing) [PDF:4.0MB]