A new partnership between the World Bank Group and Japan’s Government Pension Investment Fund (GPIF) will mobilise capital markets to direct more capital toward sustainable investments. They are expected to collaborate on initiatives that would emphasize environmental, social and governance criteria as determining factors in investment decisions across different asset classes

JimYong Kim, President of the World Bank Group said the partnership will provide data that will enable investors, who are willing to incorporate environmental, social and governance considerations issues in their investment plan, to make informed decisions. “Together with GPIF, we are embarking on an ambitious initiative to transform the way asset owners and managers see investment opportunities,” he said.

The World Bank Group and GPIF, pledged under the partnership, to develop a joint research programme that will explore practical solutions for integrating sustainability considerations into fixed income portfolios. Potential areas of research include benchmarks, guidelines, rating methodologies, disclosure frameworks, reporting templates and risk correlation for incorporating environmental, social, and governance considerations into fixed income portfolios, including for sovereigns and sustainable bond markets.

The partnership, according to the World Bank President, the investment drive is important because “we can’t achieve the Sustainable Development Goals and meet the world’s rising aspirations without a much bigger contribution from the private sector.” He added that there are more than $40 trillion on the sidelines, where investors are looking for better returns. “The GPIF is one of the world leaders in sustainable investing, and together we can help make the global market system work for everyone,” Kim said.

By Dike Onwuamaeze

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