Government Pension Investment Fund (GPIF) is a Japanese pension fund, headquartered in Tokyo. It manages and invests the Reserve Funds of the Government Pension Plans entrusted by the Minister of Health, Labour and Welfare. As of 2021, it had JPY 196.59 trillion in assets under management.
GPIF discloses absolute financed emissions, including the underlying data quality and coverage. Moreover, as a member of Climate Action 100+, the financial institutions discloses that it collectively engages with its clients on the topic of climate change. It also discloses the share of apportioned revenues derived from fossil fuels.
While GPIF’s board of directors supports the implementation ESG, it is unclear if the end responsibility for sustainability issues lies with this body. Moreover, there is no evidence that the financial institution links the remuneration of its executive or management teams to sustainability performance criteria. The financial institution has 11.9% women in senior leadership positions and 16.7% women on the board of directors. It has an opportunity to reach at least 40% female representation in senior leadership positions and on the board. It could also disclose actions taken to address any pay gaps. Regarding engagement, GPIF has an opportunity to disclose that its engagement approach includes clear frameworks with success criteria and escalation points.
There is no evidence that GPIF discloses a target to reach net-zero financed emissions by 2050. Moreover, while the financial institution discloses that it engages with its clients on ESG and climate change, it has an opportunity to disclose a rationale for engaging with specific companies or sectors on the topic of climate change. It could also discloses alignment with the Paris Agreement as one of its engagement priorities. Furthermore, while the financial institution discloses the amount it invests in ESG, there is no evidence that the financial institution discloses its financing activities devoted to climate solutions. Regarding nature and biodiversity, the financial institution has an opportunity to commit to minimising its negative impacts.
There is no evidence that GPIF has a publicly available policy statement committing it to respect human rights laid out in the UNGPs and the ILO declaration on fundamental rights at work. The financial institution has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities, especially its financing activities. Regarding workforce diversity, there is an opportunity for the financial institution to disclose the proportion of its total direct operations workforce for each employee category by age group. To provide transparency on financial inclusivity, GPIF could disclose the amount of finance directed towards, for example, women-owned businesses, small- and medium-sized enterprises (SMEs) or low-income developing countries.