The World Bank Group and Japan’s Government Pension Investment Fund (GPIF) have joined forces to grow markets for sustainable investing.
GPIF asset managers are investing in green, social and sustainable development bonds issued by the World Bank and the International Finance Corporation as part of a broader effort to integrate environmental, social and governance (ESG) considerations.
Initial investments have surpassed the equivalent of $500 million (£384m) worth of bonds.
The agreement includes collaboration on initiatives that promote strategies for including ESG criteria when making investment decisions, for example through research on how ESF factors impact risk and financial returns in fixed income markets.
Kristalina Georgieva, World Bank Chief Executive Officer, said: “Bond investors can be a key force in moving capital markets towards sustainability when they focus on transparency, purpose and impact. Through our deepening partnership, GPIF is leading by example and demonstrating that ESG considerations go hand-in-hand with long-term financial and social returns.”