Government Pension Investment Fund

September 28th, 2015

GPIF has become a signatory to the UN-PRI.

On September 16th, 2015, the Government Pension Investment Fund has become a signatory to the United Nation’s
Principles for Responsible Investment (UN-PRI) to express our attitudes to ESG issues. For further details, please see theattachment.

Our basic perspective on ESG issues
 Based upon our Investment Principles, which state “By fulfilling our stewardship responsibilities, we shall continue tomaximize medium- to long-term equity investment returns for the benefit of pension recipients.”, we have taken various
measures in accordance with the Japan’s Stewardship Code.
 These actions reflect our understanding that it is appropriate for the pension fund to help increase in corporate value, foster
sustainable growth of investee companies and enhance the medium- to long-term investment returns for the pension
recipients. It is also compatible with our philosophy that investment management of the public pension fund should beconducted safely and effectively, solely for the benefit of the pension recipients from the long-term perspective.
 It is our belief that considering Environment, Social and Governance (ESG) issues properly will lead to increase in corporate
value, foster sustainable growth of the investee companies, and enhance the medium- to long-term investment return forthe pension recipients.
 To fulfill our stewardship responsibilities, we have decided to strengthen
Investment Principles
our commitment to ESG issues by the following ways:① We encourage external domestic and international equity managers
to advance their activities for improving corporate value andfostering sustainable growth of investee companies by
incorporating ESG issues in their engagement activities.
② We become a signatory to the United Nation’s Principles for
Responsible Investment (UN-PRI) to express our attitudes to ESGissues.
③ We also continue research on whether smart beta and/or active
investment incorporating ESG issues are proved to achieve excess
returns, based on historical investment results.

Stewardship Responsibilities
Asset managers’ engagement activities withinvestee companies
Considering ESG issues

Signing the UN-PRI1

Our action plan as a signatory to the UN-PRI
UN-PRI１

２

We will incorporate ESG issues intoinvestment analysis and decision-makingprocesses.
We will be active owners and incorporate
ESG issues into our ownership policies andpractices.

GPIF’s plan•••

The GPIF, whose governing law does not permit direct equity investment,
commits to ESG issues through external asset managers it employs.
The GPIF adds ESG issues to evaluation criteria for domestic and international
equity managers and monitors how they properly incorporate ESG issues intheir engagement activities. This new policy is written in “Operating Rules forInvestment Management” and publicized.
The GPIF revises “Policy for Fulfilling Stewardship Responsibilities” to express
that GPIF incorporates ESG issues in its investment process properly.

We will seek appropriate disclosure on ESG
issues by the entities in which we invest.

•Through the engagement activities by external asset managers, the GPIF
encourages investee companies to explain their ESG policies.

We will promote acceptance andimplementation of the Principles within theinvestment industry.

•The GPIF asks external asset managers whether they are signatories to theUN-PRI.
The GPIF ask the signatories to report their ESG activities, and also ask thenon-signatories to explain the reason for not signing.

•The GPIF participates in UN-PRI’s networking activities.

５

We will work together to enhance oureffectiveness in implementing thePrinciples.

６

We will each report on our activities andprogress towards implementing thePrinciples.

••

The GPIF will issue its ESG report, which is required of the UN-PRI signatories.
The GPIF will disclose its ESG activities annually, including the analysis of ESG
activities conducted by the external asset managers it employs.

３４•2