Japan’s Government Pension Investment Fund (GPIF) is broadening its sustainability investment approach beyond its reliance on ESG index strategies as it seeks to improve long-term performance across its portfolio.

GPIF outlines the shift in its 2025 Sustainability Investment Report, published on October 15. The report reflects the Sustainability Investment Policy established in March 2025 and sets out a broader approach combining multiple strategies to reduce sustainability-related risks, improve market sustainability and secure market-average returns.

The pension fund says its fiscal 2025 initiatives include restructuring ESG investments and conducting research on impact investing under its annual plan.

The report also covers sustainability considerations across equity and fixed-income mandates, alternative investments and stewardship activities, including dialogue with asset managers, index providers and ESG rating agencies.

The fund has also brought Climate Value-at-Risk and Implied Temperature Rise analysis in-house after outsourcing the work. GPIF says the change is intended to incorporate sustainability-related risk analysis into its plan-do-check-act (PDCA) cycle for future sustainability investment.

GPIF president Kazuto Uchida says the fund is a “cross-generational investor” and “universal owner” that invests broadly across global capital markets.

He adds that the asset owner aims to contribute to the sustainable growth of investee companies and the market as a whole through engagement with asset managers and index providers, while pursuing stable long-term returns for pension beneficiaries.

As of June 2026, GPIF has total assets under management of approximately US$2.01 trillion (317.76 trillion yen).

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