CSR: Pension funds turn up ESG dial

Blue states lead lagging US on environmental, social and governance (ESG) investing; pension funds hold investment managers accountable.

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In June, Japan’s Government Pension Investment Fund, the largest pension fund in the world, with more than $1.3 trillion in assets, said it plans to raise its allocation to environmentally and socially responsible investments to 10% of its stock holdings from 3% now. It recently chose three environmental, social and governance (ESG) indices as benchmarks, including the FTSE Blossom Japan Index and the MSCI Japan Empowering Women Index.

It is a huge show of support for ESG investing from a sector that has not uniformly embraced responsible investing.

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