Japan’s Government Pension Investment Fund (GPIF) has struck a partnership with the Islamic Development Bank (IsDB) to develop and promote green and sustainable sukuk, the Islamic equivalent of bonds.
IsDB’s green and sustainable sukuk adhere to the Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines overseen by the International Capital Market Association (ICMA), the pension fund said in a statement on December 6.
“GPIF requires our asset managers to integrate ESG into their investment processes from analysis to the investment decision,” said Hiro Mizuno, executive managing director and chief investment officer of GPIF.
“We regard the purchase of green and sustainable sukuk as one of the direct methods of ESG integration. GPIF looks forward to contributing to the development of the region through this program,” added Mizuno.
Dr Yasser Gado, a treasurer at IsDB said: “GPIF is the world's largest pension fund in terms of Assets under Management (AuM) and it strongly promotes sustainable investments. In this context, IsDB is a natural partner for this initiative that will catalyse investments into the ESG fixed-income space and further develop the SRI markets.”
©2019 funds global asia