GPIF selected three ESG indices

Posted by ICEF September 29, 2017 ICEF Secretariat Reports/Opinions Team

Government Pension Investment Fund (GPIF), Japan selected three ESG (Environment, Social and Governance) indices for Japanese equities and commenced passive investment tracking those indices. Investment heeding ESG factors is expected to enhance risk-adjusted return over the longer term.

In choosing the ESG indices, GPIF emphasized that (1) “positive screening" that determines constituent companies based on their ESG evaluation should be adopted, (2) the evaluation should be based on public information and its method and results should be disclosed and (3) ESG evaluators and index providers should be properly governed and their conflict of interests should be properly managed.

GPIF (Government Pension Investment Fund), Japan website

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