Asset owners have always been at the heart of the PRI’s mission: being at the top of the investment chain, they play a unique role in driving responsible investment.
The PRI is delighted to have this year welcomed Japan’s Government Pension Investment Fund (GPIF) as a signatory to the six Principles for Responsible Investment. Japanese Prime Minister Shinzo Abe announced the move in a speech at the UN assembly meeting on 27 September.
“This will surely contribute to the achievement of sustainable development”.
Japanese Prime Minister, Shinzo Abe
“By fulfilling our stewardship responsibilities, we shall continue to maximise medium- to long-term equity investment returns for the benefit of pension recipients.”
GPIF Investment Principles
Breakdown of asser owner by region
Breakdown of asser owner by type
|Non-corporate pension fund||120|
|Corporate pension fund||57|
|SWF or govt. control fund||16|
|Development finance institution||9|
26 new asset owners signed the Principles between 1 April 2015 and 31 March 2016, representing an additional US$2 trillion, bringing the total number of asset owner signatories to 304, representing US$16.6 trillion:
|GPIF||The Dai-ichi Life Insurance Company, Limited||MS&AD Insurance Group Holdings, Inc.|
|Alecta Pensionsforsakring||Fukoku Mutual Life Insurance Company||Teachers' Retirement System of the City of New York|
|Challenger Limited||Barclays Bank UK Retirement Fund||BVK|
|Ontario Pension Board (OPB)||World Bank Group Retirement Benefit Plans||Bedrijfspensioenfonds voor de Landbouw|
|Colleges of Applied Arts & Technology Pension Plan CAAT||Geroa Pentsioak EPSV||Loreto Mutua, M.P.S.|
|Sitra||Paul Hamlyn Foundation||United Church of Canada Pension Plan|
|Régime de retraite de la Confédération des syndicats nationaux (CSN)||Sophia School Corporation||LA Retirement Fund|
|United Nations Foundation||African Risk Capacity Insurance Company Limited||PeaceNexus Foundation|
|Humboldt State University Advancement Foundation||CCOO, FP|
How asset owners can drive responsible investment: Beliefs, strategy and mandates examines how asset owners can raise their responsible investment game by ensuring that the mandates they give to fund managers include requirements for analysing and reporting environmental, social and governance (ESG) factors.
The report makes a case for the need for asset owners to do much more to support a sustainable financial system, as asset owners implementing responsible investment has a multiplier effect throughout the investment chain.
Proportion of asset owner Reporting Framework respondents who reported reviewing managers' Transparency Reports or Assessment Reports:
Proportion of asset owner Reporting Framework respondents who reported considering ESG incorporation/active ownership...
...when selecting external managers:
...when monitoring external managers:
...against targets of 52%.
Developing an asset owner climate change strategy offers a step-by-step approach for addressing climate change across three main strategies: engage, invest and avoid. Case studies outline existing examples of asset owner action, including several initiatives that were started by participants during the project.
It builds on the discussion paper Reducing emissions across the portfolio, which laid out the case for asset owner action on climate change, described why a carbon portfolio footprint is a useful tool for asset owners and covered the key factors for asset owners to consider when reducing emissions.
The PRI launched its Asset Owner Climate Change Strategy Project in response to asset owner interest in understanding whether and how to set an emissions reduction goal. A growing number of asset owners want to know how their assets are exposed to climate change risks, and the role that they can play in an orderly transition to a lower carbon economy.
The PRI has for the first time set up a dedicated work stream to examine specific challenges that asset owners face in responsible investment, and the inaugural Asset Owner Advisory Committee to advise on its work.
The Asset Owner Insight work stream will develop resources addressing portfolio-level ESG considerations including selecting/appointing/monitoring managers, investment policy/strategy and passive investment. The Asset Owner Advisory Committee consists of high-level representatives from asset owner signatories that have demonstrated leadership in implementing the six Principles.
Asset Owner Advisory Committee: