MSCI to analyse ESG practice for Japanese pension fund

MSCI to analyse ESG practice for Japanese pension fund

The Japanese Government Pension Investment Fund (GPIF) has selected MSCI ESG Research to provide reporting on ESG integration and stewardship best practices amongst leading asset owners worldwide. 

MSCI ESG Research (a subsidiary of MSCI) will provide background analysis to GPIF on the impact of stewardship codes, corporate governance standards and the integration of ESG factors into the investment decision-making process. This analysis will be used by GPIF to help it comply with Japan’s Stewardship Code - the Principles for Responsible Institutional Investors.

Modelled on the UK Stewardship Code, Japan’s code asks signatories to monitor and engage with companies in its portfolio on both financial and non-financial concerns. For the latter, inclusion of corporate governance standards and analysis of ESG risks and opportunities are encouraged.

The contract with GPIF follows the completion of an MSCI study on the potential implications of factor indexes on the fund’s $1.24trn investment portfolio earlier this year.

“We are pleased to see one of the world’s largest asset owners turn to MSCI for our expertise in factor indexes and now in environmental, social and governance research,” said Howard Sherman, head of corporate governance business development at MSCI.

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