“On September 16th, 2015, the Government Pension Investment Fund has become a signatory to the United Nation’s Principles for Responsible Investment (UN-PRI) to express our attitudes to ESG issues.
Our basic perspective on ESG issues
Based upon our Investment Principles, which state “By fulfilling our stewardship responsibilities, we shall continue to maximize medium-to long-term equity investment returns for the benefit of pension recipients.”, we have taken various measures in accordance with the Japan’s Stewardship Code.
These actions reflect our understanding that it is appropriate for the pension fund to help increase in corporate value, foster sustainable growth of investee companies and enhance the medium-to long-term investment returns for the pension recipients. It is also compatible with our philosophy that investment management of the public pension fund should be conducted safely and effectively, solely for the benefit of the pension recipients from the long-term perspective.
It is our belief that considering Environment, Social and Governance (ESG) issues properly will lead to increase in corporate value, foster sustainable growth of the investee companies, and enhance the medium-to long-term investment return for the pension recipients.
To fulfill our stewardship responsibilities, we have decided to strengthen our commitment to ESG issues by the following ways:
①We encourage external domestic and international equity managers to advance their activities for improving corporate value and fostering sustainable growth of investee companies by incorporating ESG issues in their engagement activities.
②We become a signatory to the United Nation’s Principles for Responsible Investment (UN-PRI) to express our attitudes to ESG issues.
③We also continue research on whether smart beta and/or active investment incorporating ESG issues are proved to achieve excess returns, based on historical investment results…
For the full Press Release: