The Japanese Government Pension Investment Fund (GPIF) has selected MSCI for environmental, social and governance (ESG) research as itseeks to comply with a Japanese responsible investment code.
MSCI ESG Research will provide background analysis to the fund on the impact of stewardship codes, corporate governance standards, and the integration of ESG factors into the investment decision-making process.
GPIF's aim is to be compliant with Japan's Stewardship Code - the Principles for Responsible Institutional Investors, which is modeled after 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, MSCI says. Corporate governance standards and analysis of ESG risks and opportunities are encouraged as part of the non-financial concerns element.
The contract with GPIF follows the completion of an MSCI study on the potential implications of "factor" indices on the fund's $1.24 trillion (€1 trillion) investment portfolio earlier this year.
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