Asia | July 11, 2017

World’s largest pension fund hits responsible investing milestone

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Japan’s Government Pension Investment Fund has allocated ¥1 trillion ($8.9 billion) to companies that focus on positive environmental, social, and governance (ESG) practices.

The pension fund has ¥144 trillion ($1.3 trillion) in assets under management.

Its ESG allocation represents only 3% of its Japanese stock portfolio, but the focus on positively screening stocks could guide other Japanese and Asian institutional investors to follow suit.