Japan's ¥129.7 trillion ($1.28 trillion) Government Pension Investment Fund has upgraded and expanded the “stewardship enhancement group” set up in March, making it a full-fledged division within the pension fund’s public market investment department.
The “stewardship & ESG” division becomes the department's third, joining public market investment I and II for Japanese and non-Japanese investments, respectively.
A GPIF news release Monday cited the organization's belief that it's “appropriate and essential for GPIF as a pension fund to increase long-term investment returns for pension beneficiaries by fostering sustainable growth and worth of companies in which GPIF invests.”
Hiroshi Komori, senior director of the department, will lead the fund’s ESG efforts, while another full-time division member has been “newly hired for this assignment,” said Shinichiro Mori, a Tokyo-based GPIF spokesman, in an emailed response to questions. He declined to provide further details about the new hire.
An additional five members of the fund's public market investment department will work on ESG-related issues as well, he said.