The Government Pension Investment Fund (GPIF) of Japan and Kommuninvest have recently formed a partnership to promote and develop sustainable capital markets through a focus on Green Bonds, as well as the incorporation of ESG assessments in fixed income investments.
Kommuninvest, the Swedish local government debt office, issues its Green Bonds in accordance with the Green Bond Principles, which are administered by the International Capital Market Association (ICMA). These bonds provide investment opportunities for GPIF asset managers to contribute to build a sustainable society.
Comment by Hiro Mizuno, Executive MD and CIO of GPIF:
“We would like to leverage the success with multinational development banks in green, social and sustainability bonds partnerships in hopes to expand this to other platforms. GPIF requires all asset managers to integrate ESG into their investment analysis and decision-making. We regard purchase of Green, Social and Sustainability Bonds as one of the direct methods of ESG integration in the fixed income investment. We respect Kommuninvest’s Green Bonds, which are aligned with the overall goal of Sweden’s environmental policy to, without increasing negative externalities outside of Sweden, hand over to the next generation a truly sustainable society where major environmental challenges have been solved.”
Comment by Tomas Werngren, CEO at Kommuninvest:
“While the green challenges are often global, the solutions tend to be local and regional. Since its initiation almost five years ago, Kommuninvest’s Green Bond programme has grown at a rapid pace. Based on strong commitment to sustainability among municipalities and regions, our portfolio of eligible green investment now includes some 330 projects throughout Sweden. With GPIF being a knowledgeable and inspiring global leader in promoting sustainable investments, we are pleased to form a partnership that will be of great value in further strengthening the Green Bond programme and our ESG work in general.”