Washington, D.C., April 8, 2019— The World Bank Group and Japan’s Government Pension Investment Fund (GPIF) have expanded their partnership to grow markets for sustainable investing. GPIF asset managers are strategically investing in Green, Social and Sustainable Development Bonds issued by the World Bank (International Bank for Reconstruction and Development, or IBRD) and the International Finance Corporation (IFC, a member of the World Bank Group focused on the private sector)–as part of a broader effort to integrate environmental, social and governance considerations (ESG).
Initial investments have surpassed the equivalent of US$500 million in Australian dollar, euro, and pound sterling-denominated bonds issued by IBRD and IFC.
This builds on a partnership agreement between the World Bank Group and GPIF, formalized in October 2017, to direct more capital towards sustainable investments. The agreement includes collaboration on initiatives that promote strategies for including environmental, social and governance criteria in investment decisions across different asset classes—for example through research on how environmental, social and governance (ESG) factors impact risk and financial returns in fixed income markets—and convening regular conversations with investors to explore opportunities and challenges of integrating ESG into investment strategies
Kristalina Georgieva, World Bank Chief Executive Officer, said: “ 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.”
Hiro Mizuno, GPIF Executive Managing Director and CIO, said: “GPIF requires all asset managers to integrate ESG into their investment analysis and decision-making. We regard investments in Green, Social and Sustainability Bonds as direct methods of ESG integration. ”
About the World Bank Group
The World Bank Group is one of the world’s largest sources of funding and development expertise for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD); the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in pursuing the World Bank Group’s mission to fight poverty and improve living standards for people in the developing world. For more information, please visit worldbank.org, miga.org, and ifc.org.