GPIF And NIB Launch Initiative To Promote Green Bonds
Government Pension Investment Fund (GPIF) and Nordic Investment Bank (NIB) have started a partnership that aims to strengthen capital market cooperation to promote ESG integration into fixed income investment.
Nordic Investment Bank (NIB) issues Environmental Bonds (NEBs) that align with the International Capital Market Association (ICMA) Green bond Principles, allowing investors to provide funds for projects that contribute to the transition to a low-carbon economy. Investment opportunities into these bonds will be provided to GPIF’s asset managers.
＜Comment by Hiro Mizuno, Executive MD and CIO of GPIF＞
GPIF demand our asset managers to integrated ESG into their investment process from analysis to investment decision. We regard the purchase of Green, Social and Sustainability Bonds as one of the direct methods of ESG integration in the fixed income investment. GPIF wish to contribute to make Green, Social and Sustainability bonds mainstream investment products in order to ensure the sustainable performance of the pension reserve fund for all the generations.
＜Comment by Lars Eibeholm, Head of Treasury at NIB＞
Incorporating sustainability assessments into investment decisions is crucial for redirecting capital flows. We appreciate GPIF’s recognition and support of NIB’s Environmental Bond programme.
Volumes of sustainable debt surpassed $1.6 trillion in 2021.
The consolidated quote system for corporate bonds has raised funds to expand outside the US.
It is important to maintain the voluntary nature of the standard.
Proposed changes would lead to an unsustainable level of additional cost and liability for issuers.
Bond funds saw strongest inflows since 2016.