17 Sep 2019

Japan’s GPIF and NIB to promote environmental bond investments

Japan’s Government Pension Investment Fund (GPIF) and NIB have launched a joint collaboration to promote the integration of environmental, social and governance (ESG) considerations in investment decisions and the growth of sustainable finance markets.

GPIF is the world’s largest pension fund in terms of assets under management, and requires their asset managers to integrate environmental, social and governance aspects into their investment analysis and decision-making.

Addressing environmental challenges and the impact of climate change are a growing concern among fixed-income investors worldwide. NIB has an explicit mandate from its Nordic and Baltic owner countries to finance projects that improve productivity and benefit the environment.

NIB is issuing Environmental Bonds (NEBs), allowing investors to provide funds for projects that contribute to the transition to a low-carbon economy.

“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”, says Lars Eibeholm, Head of Treasury at NIB.

NIB’s Environmental Bond Framework: NIB established its Environmental Bond (NEB) Framework in 2011, and has since issued a total of EUR 3.7 billion in environmental bonds. More than sixty eligible projects have been financed with the proceeds. Investors receive insight on the effect of their investments through project-based impact reporting.

The NEB Framework is aligned with the Green Bond Principles and its four core components: Use of Proceeds; Process for Project Evaluation and Selection; Management of Proceeds and Reporting. NIB actively takes part in the development of the green bond market and is chairing the Executive Committee of the Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines.

Click here to learn more about NIB’s Environmental Bonds.

The Nordic Investment Bank (NIB) is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.