Study Report on SRI and PRI Published in January 2008 Prepared by THE RESEARCH INSTITUTE FOR POLICIES ON PENSION & AGING NBF Takanawa Building 4F, 1-3-13, Takanawa, Minato-Ku, Tokyo, 108-0074 Japan Tel: +81-3-5793-9411 Fax:       +81-3-5793-9413 URL:     http://www.nensoken.or.jp
This report has been prepared by the Research Institute for Policies on Pension and Aging, to which Trust Sixty Foundation has entrusted "the Study on the Dissemination of Socially Responsible Investment (SRI) among Pension Plans." In recent years, there have been rising concerns about repeated corporate scandals and global warming issues. Under such circumstances, global attention has been focused on an investment approach of SRI (Socially Responsible Investment), in which investors consider the three factors of environmental, social and corporate governance factors in their investment process, with more and more people having adopted such an approach. In Britain, corporate pension plans have been legally required to disclose whether they have considered environment, social aspects and corporate ethics of their investment target companies in their investment and voting-right exercise policies. In addition, in France and the Nordic countries, public pension plans have aggressively adopted SRI. In 2006, under the leadership of the United Nations Environment Program's Finance Initiative (UNEP FI), major U.S. and European institutional investors jointly established PRI (Principles for Responsible Investment) as the principles of SRI in order to solicit the institutions supporting and practicing PRI to become signatories. On the other hand, Japanese people have been traditionally been less interested in SRI than U.S. and European citizens, while the Japanese SRI market, which deals mainly with investment trust products, is also small, meaning there has been little comprehensive research into how the Japanese pension plans perceive SRI and PRI. Given such past history and current circumstances, we conducted a questionnaire survey to objectively clarify what and how the Japanese pension plans have thought of and addressed such issues. This survey aims to comprehensively study the pension plans' awareness of SRI and PRI and how they have actually taken the two, and has uncovered many interesting facts in the process. Moreover, based on the findings, the group members and advisers involved in preparing the questionnaire survey and this report have given their implications and honest opinions concerning the issues and future trends of SRI and PRI from their respective professional perspectives. This report consists of the following chapters. The first chapter explains a summary of the survey findings. In the second chapter, based on such findings, the group members and advisers specify implications and other opinions concerning the future developments and issues of SRI and PRI in the pension sector from their respective standpoints, while the third and fourth chapters show detailed analyses and data of the questionnaire responses. If this report can help everyone understand the current conditions and issues of SRI and PRI, we will be happy. By the way, we would like to express our deep gratitude to all the people concerned, including Ms. Megumi Suto, the chairperson of the "Survey on SRI and PRI" Study Group, who has given us valuable advice and instructions on this survey and study. Moreover, we would also like to express our hearty gratitude to the members of the Pension Fund Association and all respondents who have contributed to this survey despite their busy schedules. January, 2008 The Research Institute for Policies on Pension and Aging
Chairperson : Megumi Suto, Professor of Waseda University Graduate School of Finance Other Members : Mariko Kawaguchi, Senior Analyst of Daiwa Institute of Research Ltd. : Taku Yamamoto, Head of Equity Division of Pension Investment Department of the Pension Fund Association : Eiichiro Adachi, Research Chief, Head of ESG Research Center, The Japan Research Institute, Limited. Advisors : Osamu Yamaguchi, Professor of Graduate School of Social Sciences of Yokohama National University : Takejiro Sueyoshi, Special Advisor to the UNEP Finance Initiatives in the Asia Pacific region Secretariat : The Research Institute for Policies on Pension and Aging Senior Researcher: Yasuaki Negoro Senior Researcher: Kazuharu Niinomi Senior Researcher: Arisa Kato (Note) Each member's organization and position as of December 2007 is shown above. Foreword Members of the Study Group Table of Contents Executive Summary
Appendix General Analysis data

I. Survey objectives and population
In this study, we conducted a questionnaire survey to objectively clarify in what way Japanese pension plans have perceived and actually addressed SRI and PRI. The population of the questionnaire survey includes 1,432 organizations falling under any of the following categories: "employee's pension fund," "fund-type defined-benefit corporate pension plan," "contract-type defined-benefit corporate pension plan," "tax-qualified pension plan" and "public pension plan etc." Of the above, 465 organizations (the valid response ratio: 32.5%) responded to the survey.
II . Summary of the findings of the questionnaire survey
While the awareness of “CSR” and “SRI” is high, awareness of “PRI” is low. The ratio of respondents having actually adopted SRI is 6.9%, only a small minority. As for the reasons why such respondents have adopted SRI, the ratio of the respondents answering "We, as a pension plan, have supported the idea of SRI." is the highest. Thus, it has emerged that many of them have taken factors other than investment products into consideration. The adoption of SRI has been disseminated over the past two years. . Most of the respondents having adopted SRI are highly satisfied with the investment process and investment performance. The largest number of the respondents who have not currently adopted SRI pointed out that the . information about SRI is insufficient. The majority of respondents (61.4%) have never received SRI proposals from outsiders. Conversely, the satisfaction of respondents who have received outsiders' proposals is also low. Respondents who have never received outsiders' proposals, likewise, are interested in SRI. . The majority believe that the mid to long-term influence of SRI will increase in future, but, . some respondents remain unconvinced of such prospect. Respondents have not particularly considered their investment targets' corporate governance. However, they have not felt any sense of incongruity in giving equal consideration to ESG components. As institutional issues of SRI, many respondents have cited the following needs: the establishment of an appropriate investment process, the disclosure of CSR information and the disclosure of investment policy. It has emerged that the awareness, adoption and problem recognition of SRI can vary, depending on each respondent's "investment asset size," "mother company's CSR efforts" and "plan type."
IV. Implications
<To share recognition of the social nature of pension investment>
In order to establish a public consensus that pension plans significantly influencing society should adopt investment policies contributing to the sustainable development of society, measures covering society as a whole, including the establishment of a legal system like the British model, and disseminating a message saying "Consider the social impact upon monetary investment." to the general public, should be viewed and discussed.
<Future development of SRI as an investment target>
Many respondents pointed out that, although increasing numbers of pension plans have become interested in the theme of SRI itself, the quality of current SRI products remains insufficient to meet the prerequisites for adoption. Therefore, it is desirable for the parties concerned, including investment institutions, to develop SRI products attractive to many pension plans.
<What roles should the sponsor company and asset management firm play? >
It is clear that asset management firm and research institutions should improve themselves qualitatively and professionally. Like European nations, it is also helpful to commence discussion concerning the preparation of quality guidelines of asset management firms and research institutions under the private initiative. In addition, in order to improve research activities qualitatively, it is also essential for companies to disclose highly-credible information.
<SRI investment and governance of corporate pension plans>
In Britain, when considering social, environmental or ethical factors (i.e. SEE) upon establishing the basics of its investment policy, any pension plan is required to clearly disclose to what degree it has considered such factors. This British example of information disclosure can be very helpful in solving legal and regulatory problems connected to future governance of the Japanese corporate pension plans.
<New viewpoints and enterprise spirit needed for pension plans>
To ensure the payment of future benefits, it is good to seek maximum return. However, it is necessary to discuss what approaches and standards should apply to such investment from multiple and long-term perspectives. Under circumstances where problems facing society have become increasingly serious, an enterprise spirit is needed, rather than a wait-and-see attitude. In addition, we cannot help but get the impression that Japanese laws related to fiduciary duties are lenient. With this in mind, we think that, for the management of pension plans engaged in the investment of huge amounts of money, a new law must be established to meet the demands of the new era.
<To disseminate SRI and PRI among pension plans>
The key factors to disseminate SRI among pension plans are as follows: 1) The role played by "experts" (i.e. investment and research institutions) involved in the design and provision of SRI products; 2) The influence on corporate pension plans exercised by the "mother company;" and 3) The role played by "government" and "market players" in establishing the information infrastructure. SRI is an investment approach, in which investors voluntarily evaluate and select their investment targets in the market in accordance with social, environmental and ethical standards. Therefore, to successfully disseminate SRI, pension plans' efforts alone to deepen their understanding of and to collect information concerning SRI fall short. All parties concerned, such as investment institutions, mother companies, governments and securities markets, should strive from their respective standpoints.

I. Survey objectives and population
This questionnaire survey aims to objectively clarify what and how the Japanese pension plans have considered and actually addressed SRI and PRI. The population of this survey includes 1,432 organizations, such as employee' s pension funds, fund-type defined-benefit corporate pension plans, contract-type defined-benefit corporate pension plans, tax-qualified pension plans and public pension plans. Of the above, 465 organizations (the valid response ratio: 32.5%) responded to this survey. The composition of the questionnaires' receivers (i.e. the survey population) and that of the respondents are almost the same. Therefore, the respondents can be deemed to represent the survey population. The questionnaire contains 32 questions concerning the following items: 1) the awareness of CSR, SRI and PRI; 2) whether or not each respondent has adopted SRI and why; 3) whether or not each respondent has received outsiders' proposals and the contents of and satisfaction with such proposals; and 4) the mid to long-term influence of SRI and its institutional issues.
II. Summary of the findings of the questionnaire survey
1. Awareness of CSR, SRI and PRI
As for awareness of CSR and SRI, the majority of respondents answered "Yes, we know." And, if the respondents answering "Although we have heard of it, we do not know the details well." are added, it means that the awareness of "CSR" and "SRI" terms is considerably high. On the other hand, as for the awareness of PRI, the majority of respondents answered "No, we do not know”, meaning awareness of PRI is low.
2. Adoption of SRI
(1) Adoption
As for the adoption of SRI, 62.2% of respondents, the largest share, answered "We have not currently adopted SRI and will not consider its adoption in future." On the other hand, only 6.9% of respondents answered "We have already adopted SRI." Therefore, even if the respondents saying "We have not currently adopted SRI but are considering its adoption." are added, the respondents having positive views on the adoption can account for only 31.4%. The above results suggest that SRI has not currently become a mainstream approach among pension plans. (2) Reasons for adopting SRI—Reasons why respondents have adopted SRI As for the reasons why the 32 respondents have already adopted SRI, the largest number of the respondents answered "We, as a pension plan, have supported the idea of SRI," which is followed by the reasons focusing on the investment aspect, such as "We can expect SRI to serve as a diversified investment approach," "We can expect SRI to improve investment performance." and "We have adopted SRI with the aim of enriching our knowledge of a new investment approach." Moreover, some respondents cited the reasons focusing on factors other than investment products, such as "We have deemed the adoption of SRI to be part of our extensive CSR efforts." and "Our mother company gave us some instructions or proposals concerning the adoption of SRI." We have received proposal from consulting firms We have adopted SRI with the aim of enriching our knowledge Our mother company gave us some instruction or propos We have deemed the adoption of SRI
We have deemed the adoption of SRI to be part our extensive CSR efforts We can expect SRI to improve investment performance We can expect SRI to serve as a diversified investment approach We have received proposal from investment institutions We, as a pension plan, have supported the idea of SRI In addition, the adoption of SRI has been disseminated over the past two years. About half of the respondents having already adopted SRI have adopted it for 1 to 5% of their entire investment, while more than 30% of respondents have adopted SRI for 5% or more of their entire investment. (3) Reasons for not adopting SRI—Reasons why respondents have not currently adopted SRI. The reason commonly cited by both the 114 respondents answering "We have not currently adopted SRI but are considering its adoption." and the 289 respondents saying "We have not currently adopted SRI and will not consider its adoption in future." is "The information about SRI is insufficient." In addition, many respondents said that issues concerning reliability of the investment approach and process have also remained, while 40 respondents also answered that the track record is poor. It has emerged that most of such respondents deem a verification period of three years and more to be necessary. On the other hand, results may suggest that the idea of having one prerequisite "not to contradict fiduciary duties." for SRI adoption is not as common as people say.
3. Proposals from outsiders
As for proposals for SRI from outsiders, such as investment institutions and consulting firms, 61.4% of respondents answered "We have never received proposals." While the respondents who have received such proposals from outsiders account for only 37.3%. On the other hand, as for the concrete contents of such outsiders' proposals received by the 173 respondents, the ratios of the contents presenting investment advantages, such as "As a kind of diversified investment," "As a new investment approach of active management." and "As a measure to improve investment performance (excess return)." are high. However, as for such proposals, 46.2% of respondents, the largest share, answered "We understand but are not satisfied." This clearly shows that the satisfaction with such proposals is low. By the way, it has also been revealed that the 286 respondents who have never received proposals from outsiders, too, are interested in SRI.
4. Future development and issues of SRI
As for the mid to long-term influence of SRI, 46.7% of respondents, the largest share, answered "Like those in other countries, the influence will increase." As for their concrete reasons for choosing this option, some respondents cited "Society will increasingly demand SRI," "The importance of CSR will increase," "SRI will be needed to address environmental issues," etc. On the other hand, 33.3% of respondents said "We cannot predict the future development." Thus, a recognition gap can be found among pension plans. In addition, as of now, regarding the corporate governance of investment targets, 87.5% of respondents answered "We have not especially considered." However, as for the concept of ESG, in which corporate governance is given equal consideration as an environmental and social issue, 45.8% of respondents, the largest share, answered "We do not feel any sense of incongruity in equally considering the components of ESG." We cannot predict the future development SRI is a short-term fad and will lose its influence The influence will decrease from the current level The influence will not change as it is Like those in other countries, the influence will increase We have not especially considered We have invested in governance funds We are now considering the adoption of corporate governance in our voting-right exercise policy We have already adopted corporate governance in our voting-right exercise policy Should ESG be equally considered? N=465 No answer We do not feel any sense of incongruity in equally considering the components of ESG The components of ESG are mutually different but it is adequate to equally consider them in future The components of ESG are mutually different and cannot be equally considered As for institutional issues, 25.8% of respondents, the largest share, answered "The establishment of an appropriate investment process is needed." Moreover, many respondents also chose answers related to information disclosure, such as "The disclosure of CSR information on financial statement and reports etc. must be legally required" and "It is necessary to establish a legal infrastructure, including disclosure of investment policy."
5. Differences by investment asset size
The differences in each item by investment asset size are as follows: . The larger the investment asset size, the higher the awareness of "CSR," "SRI" and "PRI", while the adoption ratio of SRI is also directly proportional to the investment asset size. For example, even among mid and large-sized respondents, the respective majorities answered "We have not currently adopted SRI and will not consider its adoption in future," but the ratios of such answer are lower than that among small-sized respondents. As for the reasons for the adoption of SRI, the largest number of large-sized respondents answered "We have received proposals from investment institutions." On the other hand, the respective largest numbers of mid and small-sized respondents answered "We, as a pension plan, have supported the idea of SRI.” As for the reasons why they have not currently adopted SRI, respondents in any investment asset size pointed out the lack of information about SRI. However, we can presume that the problem recognition of large-sized pension plans in the investment approach of SRI is higher. As for outsiders' proposals, among large-sized respondents, the majority have received such proposals. However, there is a tendency whereby the smaller the investment asset size, the higher the ratio of respondents answering "We have never received proposals." However, the larger the pension plan, the lower the satisfaction with such proposals. As for institutional issues, the respective largest numbers of mid and large-sized respondents answered "The establishment of an appropriate investment process is needed." On the other hand, a majority of small-sized respondents answered "It is necessary to legally require the disclosure of CSR information on financial statement reports etc."
6. Differences by mother company's CSR efforts
The differences in each item by the mother company's CSR efforts are as follows: There is a tendency whereby the more active the CSR efforts of the mother company, the higher both the awareness of "CSR," "SRI" and "PRI" and the adoption ratio of SRI. In addition, the ratio of adopted SRI to a pension plan's entire investment is directly proportional to its mother company’s CSR efforts. . As for the reasons for the adoption of SRI, many of the respondents whose mother companies have actively made CSR efforts answered "We deemed the adoption of SRI part of our extensive CSR efforts." or "Our mother company gave us certain instructions or proposals concerning the adoption of SRI." This shows that such respondents have adopted SRI as part of their mother companies’ efforts. . As for the reasons why they have not currently adopted SRI, the respondents in any category of mother companies' CSR efforts pointed out the lack of information about SRI. However, the respondents whose mother companies have actively made CSR efforts cited concrete reasons, such as the poor track record and the questionable investment process. . As for outsiders' proposals, only among respondents whose mother companies have actively made CSR efforts did the majority answer with "We have received proposals." Likewise, concerning the mid to long-term influence of SRI, the ratios of respondents answering "We cannot predict the future development." are relatively high in the categories of "Our mother company has neither promulgated nor considered its CSR policy." and "We are not sure."
7. Differences by plan type
A comparison between "employee's pension funds" and "fund-type defined-benefit corporate pension plans," under either category of which many respondents fall, shows the following differences: There is a tendency whereby both the awareness of "CSR," "SRI" and "PRI" and the adoption ratio of SRI are higher among fund-type defined-benefit corporate pension plans. In addition, as for SRI, the ratio of the answer of "We have not currently adopted SRI but are considering its adoption." is also higher among fund-type defined-benefit corporate pension plans. . As for the reasons for the adoption of SRI, the ratio of the answer of "We have deemed the adoption of SRI to be part of our extensive CSR efforts." is higher among fund-type defined-benefit corporate pension plans. As for the reasons why respondents have not currently adopted SRI, among employee's pension funds, the ratios of the answers related to "concerns over investment performance" and "acceptance by the people concerned." are high. On the other hand, among fund-type defined-benefit corporate pension plans, the ratios of the answers related to the "investment process" are high. . As for outsiders' proposals, 43% of fund-type defined-benefit corporate pension plans and 32% of employee's pension funds have received such proposals. However, the satisfaction is lower among fund-type defined-benefit corporate pension plans, while many employee's pension funds answered "We cannot understand well."
8. Conclusion
To conclude the above, although awareness of the term of "SRI" is high among pension plans, "SRI" has not been fully recognized as an investment product. Therefore, it has emerged that, as of now, the adoption of SRI has not been disseminated. As for the investment process and results of SRI, while the respondents having already adopted SRI are satisfied to some extent, it can be inferred that those who have not done so are concerned with both the process and performance. Therefore, it has emerged that the biggest obstacle against the adoption of SRI is the lack of information concerning the investment approach and performance. As for outsiders' proposals, certain issues, including insufficient approaches by investment institutions and unsatisfying explanations, have emerged. On the other hand, it has emerged that a pension plan's investment asset size, the relationship with its mother company and plan type influence its awareness of the terms of "CSR," "SRI" and "PRI" and its adoption of SRI to the extent that they cannot be ignored. The larger its size and the more actively its mother company has made CSR efforts, the higher the pension plan's awareness of SRI and the ratio of its adopted SRI to its entire investment and the more proposals it has received from investment institutions. Moreover, the majority of employee's pension funds responding to this survey are of the general-type which have been established with the consensus of several companies. If compared with corporate pension plans whose mother companies shall have clear responsibilities, considerable differences between the former and latter can be found, not only in the awareness of and attitude towards SRI but also outsiders' proposals.
Mariko Kawaguchi Senior Analyst Management Strategy Department Daiwa Institute of Research Ltd. As everyone knows, the adoption of SRI has not been disseminated among the Japanese pension plans. Therefore, upon the implementation of this questionnaire survey, we initially expected a low interest in SRI and a low response ratio. However, the actual response ratio was 32.5%, which is higher than expected, which proves that pension plans' interest in SRI itself is not at all low. In addition, the awareness of SRI is 83.8%, which is also higher than expected. As for the awareness channel, the ratio of "We have learned SRI from seminars etc." is the highest. This shows that the education activities actively carried out by investment institutions have been effective to some extent. The groundwork for the adoption of SRI can be considered virtually laid. The adoption ratio of SRI is 6.9%, which is the same as expected. However, 30% of all respondents, including 24.5%, which is the ratio of the respondents "under consideration," showed positive attitudes towards SRI. You can deem this 30% either high or low, depending on your sense of value. However, given the fact that the SRI investment for corporate pension plans was launched only four years ago and that public pension plans etc. are negative towards SRI, I would like to acknowledge this ratio as a figure higher than expected. There is a tendency whereby the more actively its mother company makes CSR efforts, the more positive the pension plan is towards the adoption of SRI. Nevertheless, half the pension plans whose mother companies have actively made CSR efforts answered "We have not currently adopted SRI and will not consider its adoption in future." As the factors behind this, in addition to the lack of information, it can be inferred that such mother companies "do not have the notion that they should consider the adoption of SRI for their investment as part of their CSR efforts." Following the revision of the Environmental Reporting Guideline Issued by the Ministry of the Environment, the inclusion of investment efforts has also been required in the stated items. Therefore, in future, we will be capable of anticipating an improved legal infrastructure in order to change recognition among the people concerned. Moreover, despite the fact that their mother companies have not actively made CSR efforts, some pension plans have adopted SRI, which shows that they can adopt SRI if they are satisfied with it as an investment approach. However, regarding satisfaction with SRI as an investment approach, it has also emerged that there remains room for improvement. Among the 289 respondents (62.2% of all respondents) who "will not consider the adoption of SRI in future," those citing "the lack of information" accounts for the largest share (31%). Moreover, as a prerequisite for their future consideration, it is also "information" that accounts for 22.3%. Among the 31 respondents (4.5% of all respondents) who "have decided not to adopt SRI," too, those answering "The information about SRI is insufficient." accounts for the largest share (19.4%), followed by "We cannot expect SRI to improve investment performance." of 16.1% and "We have found problems in the investment process." of 12.9%. By the way, the number of pension plans citing "fiduciary duties" as the reason for not adopting SRI is fewer than ten and unexpectedly low, which suggests that the recognition of SRI itself has improved. However, it can be suggested that the information has qualitatively and quantitatively remained insufficient to satisfy pension plans. On the other hand, only 6.9% of all respondents have already adopted SRI. However, regarding such respondents' satisfaction with the investment process, 34.4% and 37.5% answered "We are satisfied." and "We are moderately satisfied," respectively, meaning the total of satisfied respondents exceeds 70%. As for the investment performance, likewise, two thirds of all respondents answered "satisfied/moderately satisfied." Thus, the quality of the SRI investment, itself, may unexpectedly satisfy pension plans' demands, while those who have hesitated in adopting SRI may just hate the idea of SRI without trying it. Given the above, the following matters can be found: The information is both qualitatively and quantitatively insufficient to meet the prerequisites for pension plans to adopt SRI (or, to successfully persuade them to adopt SRI); the pension plans that have already adopted SRI are satisfied with the results. Therefore, if investment institutions improve approaches in terms of marketing and persuasion methods, a relatively large number of potential needs can emerge. However, on the other hand, in the U.S. and Europe, an increasing number of asset holders, among others, pension plans, have become signatories to PRI. While the Japanese pension plans' attitudes are so passive that they consider adoption only after receiving proposals from investment institutions, increasing numbers of U.S. and European pension plans have voluntarily committed to SRI investment. Behind this trend, there is the following idea of socially responsible pension plans: "Pension plans investing huge amounts of money should have favorable impacts on society through their investment activities." However, sadly, as the low awareness of PRI has already shown, we cannot find positive attitudes toward pension plans in Japan. I think that the biggest reason behind this is not negligence with regard to pension plans but the fact that Japanese society has not shared the recognition that "pension plans should be responsible for considering the possible impact on society of their investment activities." The findings of this survey have given me an impression that, in order to disseminate SRI in Japan in the shortest time, we should focus on enhancing the recognition of SRI among all of society rather than encouraging individual pension plans to adopt SRI. I believe that, based on the recognition that "socially responsible investment can create the best result for all members of society," there is an urgent need to forge a consensus that "pension plans with a significant impact on society should adopt investment policies contributing to the sustainable development of society." To this end, even measures covering society as a whole, including the establishment of legal systems, as seen in the revision of the British Pension Law and in other cases, adopting SRI investment to address the issues of the Japanese society through the establishment of government-affiliated funds, which are currently under discussion, and widely disseminating the message "Consider social impact upon monetary investment." to the general public, should be viewed and discussed.
Taku Yamamoto Equity Group Leader Pension Investment Department Pension Fund Association The relatively high response ratio of 32.5% suggests high awareness of themes such as SRI and PRI among pension plans. Here again, I would like to express my sincere gratitude to all the pension plans responding to this survey. The question is why has such growing interest not led to actual investment activities. To find the answer to the question above, we should focus on the reasons for the SRI adoption of respondents already having adopted SRI. Among such respondents, those answering "We, as a pension plan, have supported the idea of SRI." account for 27%, the largest share. If the ratios of the answers of "We have deemed the adoption of SRI to be part of our extensive CSR efforts." and "Our mother company gave us some instruction or proposal concerning the adoption of SRI." are added to the above, it means that more than 40% of such respondents cited factors other than investment product value as the reasons for their adoption. Moreover, among respondents currently considering the adoption of SRI, slightly less than 70% cited "Sufficient information about SRI is needed," "The reasonability of SRI as an investment approach must be proven," "A track record long enough to verify investment performance is needed." and "It is necessary to make it clear that the adoption of SRI does not contradict fiduciary duties." as prerequisites to adopt SRI. This suggests that the credibility in the investment approach and process has not reached the extent where pension plans' demands can be satisfied. Next, let's examine respondents who have decided not to adopt SRI after considering its adoption and those who will not consider the adoption of SRI in future. Among such respondents, 19% of those who have decided not to adopt SRI and 31% of those who will not consider the adoption of SRI in future, the respective largest shares answered "The information about SRI is insufficient." We should focus on the meaning of this "lack of information." If it simply means that information about SRI is insufficient, the people concerned can strive harder to provide sufficient information and establish an environment in which to disseminate SRI. However, if the "lack of information" suggests not that pension plans simply seek general information about SRI but that evidence is insufficient for investment decision makers to judge whether or not to adopt SRI , this is a quite
deep-rooted problem.
Among the respondents having received proposals from outsiders, 56% answered "We understand but are not satisfied." or "The proposals lack clarity and we are not satisfied." This also suggests how deeply rooted the issue has become. To sum up, it has emerged that, as of now, we have been in a situation where it can be hardly admitted that SRI's nature as an investment product has been fairly recognized by either the pension plans having already adopted SRI or those having not adopted it yet. In this context, the findings of this survey ask the parties concerned, including investment institutions, the following question: Which is more desirable for the future dissemination of SRI in Japan, to continue the existing approach or to engage in a further discussion on what is needed for the current SRI? The findings of this survey can be concluded as follows: Although more and more pension plans have become interested in the theme of SRI itself, the majority opinion is that current SRI products have not qualitatively reached the level where pension plans' prerequisites for the adoption of SRI can be met. I would like the parties concerned, including investment institutions, to surely take the findings of this survey positively in order to develop SRI products attractive to many pension plans.
Eiichiro Adachi Researcher Chief Head of ESG Research Center Japan Research Institute, Limited. More than eight years have passed since mutual funds based on the idea of socially responsible investment, named "Eco-funds," first launched in Japan. Also, more than four years have passed since some defined-benefit corporate pension plans began to adopt the same idea. The findings of this survey present valuable information directly reflecting pension plans' views and opinions on socially responsible investment. To date, no such comprehensive survey on pension plans has ever been implemented in Japan. Moreover, we can hardly find such examples, even abroad. Based on the findings of this survey, JRI, as an organization engaged in ESG research for socially responsible investment, would like to mention the kind of measures that will be desirable in future. Among the respondents answering "We have not currently adopted SRI but are considering its adoption." or "We have not currently adopted SRI and will not consider its adoption in future," the ratios of the answers of "Sufficient information about SRI is needed." and "The information about SRI is insufficient." are high. This is important, because it shows that asset management firms and research institutions have not always striven sufficiently to provide explanations and information, so we should humbly accept this point. As of now, several year-long track records and investment characteristics have also been revealed, which, in my opinion, makes it considerably significant to summarize the actual history of socially responsible investment in Japan at this point. Moreover, through this survey, it has emerged that corporate pension plans whose sponsor companies have actively made CSR efforts are positively interested in SRI, which is interesting. The idea that a company should regard its pension plan's adoption of SRI as a part of its CSR efforts is very significant. In the UK, pension members have traditionally selected socially responsible investment as the ideal investment approach for the money they have paid. Although the question of how to forge a consensus among pension members also remains pending in Japan, one approach involves the sponsor company of a pension plan taking the initiative to select socially responsible investment. In addition, as for the "Contents of and satisfaction with outsiders' proposals," the satisfaction of respondents having received proposals "as an investment with a small downside risk" is relatively high. This point is also notable and existing demonstrative research has also uncovered such a tendency. Therefore, if the concept of relative return is disseminated in long-term investment, the acceptance of socially responsible investment can increase. Moreover, the findings of this survey clearly show that asset management firms and research institutions must improve themselves both qualitatively and professionally. Some respondents voiced the need "to establish an appropriate investment process." Therefore, like European nations, it is also helpful to commence discussion concerning the voluntary preparation of respective quality guidelines for asset management firms and research institutions under the private initiative. In addition, in order to improve research activities qualitatively, it is also essential for companies to disclose highly-credible information. Europe has witnessed a trend whereby companies are legally required to disclose information concerning their environmental and social performances in their annual reports (e.g. Directive 2003/51/EC of the European Parliament and of the Council of 18 June 2003). I hope that likewise in Japan, similar efforts to establish a legal infrastructure, including the establishment or revision of laws and regulations concerning financial statement reports etc., will be made.
Osamu Yamaguchi Professor Graduate School of Social Sciences Yokohama National University Advanced nations, including the U.S. and European countries, have witnessed a major trend where corporate pension plans consider social, environmental or ethical issues (SEE) in their investment activities. Moreover, SRI (Socially Responsible Investment) funds, typical investment funds used to implement such ideas, have been established, while PRI (Principles for Responsible Investment) etc. have been established as the principles to be followed by pension plans etc. when making investment decisions. Through this questionnaire survey, the adoption and recognition of SRI and PRI in Japan have been revealed. I would like to emphasize appreciation of this point. Among others, the useful findings include the fact that more than 30% of the survey population, a high ratio, responded to this questionnaire survey and that the awareness of the "SRI" term stands at a minimum high ratio of more than 80%. However, even if those who are now considering the adoption of SRI are added, it only means that about 30% of respondents have positive views on the adoption of SRI. This shows that SRI has stopped far short of becoming a major practical approach in corporate pension plans' investment. On the contrary, more than 60% of respondents negatively answered, choosing "We have not currently adopted SRI and will not consider its adoption in future." This shows the actual situation where opinions have been divided on SRI among corporate pension plans. Among the respondents who have already adopted SRI, many answered "We, as a pension plan, have supported the idea of SRI." Moreover, most of those who have not adopted SRI cited issues related to the investment process and performance as reasons for not adopting SRI, which suggests the following: At least for now, SRI has been supported as an idea, but not always fully accepted as an investment approach. Next, as for the adoption of SRI, the following tendencies have been revealed: Based on the type of pension plan involved, corporate pension plans are relatively positive in terms of investment asset size, the larger the asset size, the more positive the attitude of the pension plan towards the adoption of SRI. Therefore, the responses were analyzed more precisely by plan type ("employee's pension fund" and "corporate pension plan"). In addition, this analysis revealed the following matters: There is a major difference in awareness of CSR and SRI between these two types; among others, as for CSR efforts, while more than 70% of corporate pension plans answered "We have actively made CSR efforts," only less than 20% of employee's pension funds answered the same, which is a major difference. It can be inferred that, behind such differences, the following difference in actual condition between the above two types has existed: For corporate pension plans established by a company or by group companies, even if an investment risk rebounds on the installment in the form of a burden, it is clear which party should take finally all responsibilities and liabilities for the risk; for employee's pension funds, many of which are of general-type established with the consensus of several companies, the plan sponsors' actual responsibilities and liabilities are vague meaning the final risk tolerance subsequently diminishes, which makes such pension plans' management tight. Therefore, the following can be suggested: Whether or not SRI can be deemed a tolerable investment approach, even if activities such as "promulgating CSR policy and actively making CSR efforts" cannot directly lead to the present performance, depends on the governance structure of a corporate pension plan, including its plan sponsor and attention should be paid to such structure. Thus, it may also be useful in future SRI development to review what the governance of a corporate pension plan, including the role of plan sponsors as the final risk takers, should be. In this context, the British example of information disclosure whereby, when considering social, environmental or ethical issues (SEE) upon establishing its basic investment policy, all pension plans are required to disclose to what degree they have considered such issues, can become a great help in solving the legal and regulatory problems associated with future investment of the Japanese corporate pension plans.
Takejiro Sueyoshi Special Advisor to the UNEP Finance Initiatives in the Asia Pacific region As many as 465 pension plans responded to this questionnaire survey, which was the first of its kind, while in addition, the questions were diversified. Nevertheless, such a large number of pension plans responded. First and foremost, I would like to greatly appreciate this point. I think that there are various kinds of opinions on the analysis of the results of this survey. However, given that CSR itself, based on which SRI and PRI were established, has a very short history in Japan (although the Japanese indigenous CSR has a reasonably long history), I would like to positively accept the results, based on the premise that likewise in Japan, this theme has been generally accepted. EU nations and the United States, which are the pioneers in this field, have their own histories where, their societies have long digested this difficult issue and accumulated numerous accomplishments. Therefore, we should not expect rapid dissemination in Japan in the first place. Nonetheless, the progress of globalization has brought more foreign investment to Japan. Under such circumstances, it is not desirable for a gap between home and abroad to remain. To catch up with the above pioneers as soon as possible, reasonable ideas and efforts are needed, hence I would like to request that Japanese pension plans do the following: Firstly, it is time to begin discussion from a new perspective. To ensure the payment of future pension benefits, it is good to seek maximum financial return. However, is it impossible to engage in discussion from multiple and long-term viewpoints concerning the kinds of approaches and standards that should be adopted for such investment in consideration of social and/or environmental issues? Secondly, an enterprise spirit is needed. Given the nature of pension plans, it is well understandable that they cannot move without serious consideration. However, the question is as follows: Is it acceptable that pension plans move only after the preparation is completed? In U.S. and European nations, through accumulated discussions, the direction is accepted and many people actively strive to create a new system. Under circumstances where problems facing society have become increasingly serious, an enterprise spirit is required, rather than a wait-and-see attitude. Thirdly, it is necessary to revise the laws concerning fiduciary duties etc. Upon the promotion of PRI, UNEPFI entrusted a precise analysis of the fiduciary-requirement-related laws of nine countries, including Japan, to a British law firm. However, the results could not help but give the impression of leniency of the Japanese law. For investment by pension plans, dealing with huge amounts of money, new laws to meet the demands of the new era are needed. The ultimate goal of pension plans is to secure foundations for pension members' future lifestyles. If so, then on what purpose should pension plans spend their members' valuable money? This is precisely "People's savings meet society's goals." I hope that future discussions will be engaged in from the new viewpoints.
Megumi Suto Professor Graduate School of Finance, Accounting & Law Waseda University Pension plans are long-term investors supporting the aging society and have now become leading players in the securities market. In future, their presence in the securities market will increase, or, at least, never decrease. It is no exaggeration to say that whether or not SRI can become a mainstream approach in the securities market depends on the dissemination among pension plans. Now that the circumstances surrounding companies have dramatically changed, recognition of and response to the social and environmental impacts of corporate activities are strictly required. Pension plans aiming to realize successful long-term-investment performance on behalf of their beneficiaries have no longer been allowed to ignore the wide-ranging risk management and CSR efforts of their investment targets. In addition, there is a growing expectation that, as the leading institutional investors have a significant influence on the money flow in society, pension plans should be aware of their social influence in order to consider social, environmental and ethical issues (SEE) in their investment policies. In Japan, with a rapidly aging society, the investment performance of pension plans as investment agents has always been subject to evaluation. Therefore, many pension plans have been said to be passive towards SRI, which may contradict fiduciary duties. The results of this survey again show the following matters: Despite the considerably increased awareness of SRI among pension plans, the adoption of SRI has currently lagged far behind; pension plans having already adopted SRI have remained in a minority. Conversely, increasing numbers of pension plans have become interested in SRI as an investment approach, meaning the potential demand is never small. It goes without saying that understanding and decision-making of pension plans' investment managers are essential for the dissemination of SRI. However, such understanding and decision-making cannot achieve practical results, unless their supplementary requirements are met. The survey results suggest the existence of several "keys" needed to disseminate SRI among pension plans. The first "key" is the big role played by "experts" (i.e. investment and research institutions) engaged in the design and provision of SRI products. To many pension plans, the proposals and information provided by such experts are important channels to access SRI. There is room to practice SRI without contradicting fiduciary duties. However, a lack of information about and the suspicion over the SRI's investment process and results have become obstacles against dissemination. SRI originally aims to influence the money flow into companies to contribute toward solving social issues. The question is whether or not SRI can serve as a fully reasonable investment scheme after such aim is reflected in its investment characteristics. In addition, pension plans' recognition of and attitude towards CSR and SRI vary considerably, depending on their type and business. Therefore, upon designing products and providing proposals and information, it is necessary to take such type and business into consideration. One of the necessary keys to promote SRI is undoubtedly investment institutions' efforts to develop SRI products and the provision of information to their customers. The second "key" is the influence of the "mother company" on a pension plan. As for the investment of corporate pension assets, it has emerged that a pension plan's awareness and behavior have been strongly influenced by its mother company's recognition of and attitude towards CSR. Mother companies should fully recognize that, while admitting the independence of their pension plans' management, they can influence the investment of their pension assets by showing a recognition of and attitude towards CSR activities to their employees and market players. A mother company's evaluation standard for the investment performance of its pension plan is another factor to influence the investment activities of its pension plan. Whether or not SRI can be disseminated among corporate pension plans depends on how their mother companies recognize and evaluate the significance of SRI in the investment of their pension assets. The relationship between a mother company and its pension plan has highlighted the issue that the location of the responsibilities involved in the investment of the pension assets should be clarified: the issue related to the governance of the pension plan, itself. The third "key" is the role played by "government" and "market players" in the establishment of information infrastructure. In Britain, pension plans are required to disclose to what extent they have considered social, environmental or ethical issues in their basic investment policies. Such information disclosure can help pension plans deepen their recognition of SRI and share such recognition with more and more general households and individuals as their beneficiaries. Moreover, to promote the disclosure of companies' non-financial information, which explains corporate social and environmental activities, the wide-ranging consideration and information provision, including not only the establishment of the legal infrastructure but also the timely disclosure and practice code's clarification by stock exchanges as market operators and by the securities sector as a whole, are needed. The bottom-line information, which is needed for adopting SRI, should be provided to pension plans. Moreover, pension plans should subsequently decide on this adoption at their own discretion. This is a basic institutional prerequisite to disseminate the original aim of SRI. SRI is an investment approach, in which investors voluntarily evaluate and select their market investment targets. To promote SRI, not only encouraging investors to voluntarily collect information but also establishing an information infrastructure for CSR and SRI are essential. To promote the adoption and dissemination of SRI among pension plans, all the parties concerned, including pension plans, investment institutions, mother companies, governments and securities markets, should strive from their respective standpoints.

I. Survey Outline
The outline of "The Questionnaire Survey on SRI and PRI" is as follows.

II. Survey results (General analysis)
1. Attributes of respondents
The attributes of respondents to "The Questionnaire Survey on SRI and PRI" are as follows:
(1) Plan Type (Q1-1)
Q1-(1) Which of the following is the type of your pension plan? The breakdown by type of the pension plans to which the questionnaires were sent out is as follows: 647 "employee's pension funds" (45.2%), 595 "fund-type defined-benefit corporate pension plans" (41.6%), 133 "contract-type defined-benefit corporate pension plans" (9.3%), 47 "tax-qualified pension plans" (3.3%) and 10 "public pension plans etc."(0.7%).
Of the above pension plans to which the questionnaires were sent out, the breakdown by type of those responding to the questionnaire is shown in Table and Graph 2. The number of "employee's pension funds" is 224 (48.2%), which is followed by "fund-type defined-benefit corporate pension plans" of 218 (46.9%), "contract-type defined-benefit corporate pension plans" of 14 (3.0%), "tax-qualified pension plans" of 2 (0.4%) and "public pension plans etc." of 7(1.5%).
As for the 224 respondents falling under the category of employee's pension fund, 75.4% of them have been "established with the consensus of several companies."
(2) Mother company's business category (Q1-2) Q1-(2) Which one of the following is your mother company's business category? The breakdown of respondents' mother companies by business category is shown in Table and Graph 4. The number of the respondents of "Service" is 62 (14.7%), the largest, which is followed by "Electrical appliances" of 42 (8.6%), "Construction" of 41 (8.4%), "Wholesale trade" of 35 (7.1%) and “Retail trade” of 33 (6.7%).
If mother companies are classified into manufacturers and non-manufacturers, the number of "manufacturers" is 209 (42.7%) and that of "non-manufacturers" is 259 (52.9%). This shows that respondents of non-manufacturers are a little more than those of manufacturers.

(3) Investment asset size (Q2)
Q2. Which one of the following is your investment asset size? The breakdown of respondents by investment asset size is as follows: The number of the respondents of "10 billion yen to less than 50 billion yen" is 212 (45.6%), the largest, which is followed by "5 billion yen to less than 10 billion yen" of 81 (17.4%) and "1 billion yen to less than 5 billion yen" of 63 (13.7%).
The breakdown of respondents reclassified by investment asset size into three groups of "small size (less than 10 billion yen)," "medium size (10 billion yen to less than 50 billion yen)" and "large size (50 billion yen or more)" is shown in Table and Graph 7. The number of the "medium size" group is 212 (45.6%), the largest, which is followed by the "small size" of 149 (32.0%) and the "large size" of 104 (22.4%).

(4) Domestic stock ratio (Q3)
Q3. Which one of the following is the ratio of domestic stocks to your investment assets? As for the ratios of domestic stocks to respondents' investment assets, the number of respondents of “30% to less than 40%” is 215 (46.2%), the largest, which is followed by "20% to less than 30%" of 131 (28.2%) and " 40% to less than 50%" of 63 (13.5%).

(5) Ratio of active management to domestic stocks (Q4)
Q4. Which one of the following is the ratio of active management to your assets invested in domestic stocks? As for the ratio of active management to respondents' domestic stocks, the number of respondents of "50% or more" is 235 (50.5%), the largest, which is followed by "40% to less than 50%" of 55 (11.8%).

2. Awareness of CSR, SRI and PRI
This survey firstly asked respondents about the awareness of CSR, SRI and PRI. The results are as follows:
(1) Awareness of CSR (Q5)
Q5. Do you know CSR (Corporate Social Responsibility)? As for the awareness of CSR, the number of respondents answering "Yes, we know." is 290 (62.4%), the largest, which is followed by "Although we have heard of it, we do not know the details well." of 132 (28.4%) and "No, we do not know." of 40 (8.6%). The majority of respondents answered "Yes, we know." If the respondents answering "Although we have heard of it, we do not know the details well." are added, it means awareness of the term "CSR" is considerably high.

(2) Mother company's CSR efforts (Q6)
Q6. Has your mother company promulgated its CSR policy and made CSR efforts? The mother companies' CSR efforts are shown in Table and Graph 11. The number of respondents answering "We are not sure." is 178 (38.3%), the largest, which is followed by "Our mother company has promulgated its CSR policy and has actively made CSR efforts." of 151 (32.5%) and "Our mother company has neither promulgated nor considered its CSR policy." of 59 (12.7%).
However, most of the respondents answering "We are not sure." about their mother companies' CSR efforts are "employee's pension funds (general-type)."

(3) Awareness of SRI (Q7)
Q7. Do you know SRI (Socially Responsible Investment) based on CSR? The awareness of SRI is shown in Table and Graph 13. The number of respondents answering "Yes, we know." is 254 (54.6%), the largest, which is followed by "Although we have heard of it, we do not know the details well." of 136 (29.2%) and "No, we do not know." of 69 (14.8%).The majority of respondents answered "Yes, we know." If the respondents answering "Although we have heard of it, we do not know the details well." are added, it means that awareness of the term of "SRI" is considerably high.

(4) Awareness channel of SRI (Q8)
Q8. This is the question to the respondents answering "Yes, we know." to Q7. Please choose one or more from the following options as your awareness channel(s) of SRI. (Multiple answers allowed.) As for the awareness channels of the 254 respondents who "know" SRI, the number of respondents answering "We have learned SRI from seminars etc." is 161 (31.8%), the largest, which is followed by "We have learned SRI from books, newsletters, etc." of 124 (24.5%) and "We have received proposals from investment institutions." of 118 (23.3%).

(5) Awareness of PRI (Q9)
Q9. Do you know PRI (Principles for Responsible Investment) advocated by the United Nations Environment Program's Finance Initiative (UNEP FI)? As for the awareness of PRI, the respective numbers of the respondents answering "Yes, we know," "Although we have heard of it, we do not know the details well." and "No, we do not know." are 72 (15.5%), 149 (32.0%) and 239 (51.4%). The majority of respondents answered "No, we do not know." This means that the awareness of PRI is lower than those of CSR and SRI.

(6) Awareness channel of PRI (Q10)
Q10. This is the question to the respondents answering "Yes, we know." to Q9. Please choose one or more from the following options as your awareness channel(s) of PRI. (Multiple answers allowed.) As for the awareness channel of the 72 respondents who "know" PRI, the number of respondents answering "We have learned PRI from seminars etc." is 50 (50.0%), the largest, which is followed by "We have learned PRI from books, newsletters, etc." of 23 (23.0%) and "We have learned PRI from newspapers." of 12 (12.0%).

(7) Approval for PRI (Q11)
Q11. This is the question to the respondents answering "Yes, we know." to Q9. Do you support the idea of PRI? As for the opinions of the 72 respondents who "know" PRI, the number of respondents answering "We support PRI but do not consider becoming a signatory." is 56 (77.8%), the largest, which is followed by "We are not sure." of 14 (19.4%).

3. Adoption of SRI
As for the adoption of SRI, the results are as follows:
(1) Adoption of SRI (Q12)
Q12.Have you currently adopted SRI in your asset investment? Please select one of the following options as applicable. As for the adoption of SRI, the number of respondents answering "We have not currently adopted SRI and will not consider its adoption in future." is 289 (62.2%), the largest number. On the other hand, the number of respondents answering "We have already adopted SRI." is 32 (6.9%). Therefore, even if the 114 (24.5%) respondents answering "We have not currently adopted SRI but are considering its adoption." are added to the above 32 (6.9%), the ratio of the respondents feeling positive towards SRI is only 31.4%.

(2) Question 1 to the 32 respondents who have already adopted SRI.
<Reasons for the adoption of SRI> (Q13)
Q13. Please choose applicable reason(s) for the adoption of SRI from the following options. (Multiple answers allowed.) As for the reasons for the adoption of SRI, the number of respondents answering "We, as a pension plan, have supported the idea of SRI." is 24 (27.0%), the largest, which is followed by "We have received proposals from investment institutions." of 20 (22.5%) and "We can expect SRI to serve as a diversified investment approach." of 15 (16.9%).

(3) Question 2 to the 32 respondents who have already adopted SRI.
<Time of the adoption of SRI and the ratio of adopted SRI to domestic stocks> (Q14) Q14. When did you adopt SRI in your asset investment? And, how much is the present ratio of the adopted SRI to your domestic stocks? As for the time of the adoption of SRI, the number of respondents answering "2006" is 18 (56.3%), the largest, which is followed by "From 2007 onwards" of 9 (28.1%) and "2005" of 3 (9.4%). Many such respondents have adopted SRI within the past two years.
On the other hand, as for the ratio of adopted SRI to domestic stocks, the number of respondents answering "1% to less than 3%" is 11 (34.4%), the largest, which is followed by "5% to less than 10%" of 6 (18.8%) and both "3% to less than 5%" and "10% or more" of 5 (15.6%). While the total ratio of "1% to less than 3%" and "3% to less than 5%" is 50%, that of "5% to less than 10%" and “10% or more” is also 34.4%.

(4) Question 3 to the 32 respondents who have already adopted SRI.
<Satisfaction with investment process > (Q15)
Q15. Are you satisfied with the investment process of SRI (screening method, selection of issues, etc.)? As for the satisfaction with the investment process of SRI, the numbers of respondents answering "We are satisfied," "We are moderately satisfied," "We are moderately dissatisfied." and "We have not yet seen the results." are 11 (34.4%), 12 (37.5%), 1 (3.1%) and 7 (21.9%), respectively. The total ratio of "We are satisfied." and "We are moderately satisfied." is 71.9%. This suggests that most of the respondents who have already adopted SRI are satisfied with the investment process of SRI.

(5) Question 4 to the 32 respondents who have already adopted SRI.
<Satisfaction with investment performance > (Q16)
Q16. Are you satisfied with your existing investment performance (excess return)? The satisfaction with the investment performance of SRI is shown in Table and Graph 23. The numbers of the respondents answering "We are satisfied," "We are moderately satisfied," "We cannot say which," "We are moderately dissatisfied." and "We have not yet seen the results." are 14 (43.8%), 7 (21.8%), 5 (15.6%), 1 (3.1%) and 4 (12.5%), respectively. The total ratio of "We are satisfied." and "We are moderately satisfied." is 65.7%. This suggests that, as of now, most of the respondents who have already adopted SRI are also satisfied with the investment performance of SRI.

(6) Question to the 114 respondents who have not currently adopted SRI but are considering its
adoption. (Q17)
Q17. This is the question to the respondents answering "We have not currently adopted SRI but are considering its adoption." to Q12. Please choose one or more from the following options as the prerequisites for the adoption of SRI. (Multiple answers allowed.) As for the prerequisites for the respondents answering "We have not currently adopted SRI but are considering its adoption." to adopt SRI, the number of respondents answering "Sufficient information about SRI is needed." is 74 (24.7%), the largest, which is followed by "The reasonability of SRI as an investment approach must be proven." of 54 (18.0%) and "A track record long enough to verify investment performance is needed." of 36 (12.0%).

(7) Question to the 21 respondents who have decided not to adopt SRI after considering its
adoption.(Q18)
Q18. This is the question to the respondents answering "We have decided not to adopt SRI after considering its adoption." to Q12. Please choose one or more from the following options as the reasons why you have decided not to adopt SRI. (Multiple answers allowed.) As for the reasons why such respondents have decided not to adopt SRI after considering its adoption, the number of respondents answering "The information about SRI is insufficient." is 6 (19.4%), the largest, which is followed by "We cannot expect SRI to improve investment performance." of 5 (16.1%) and both "A track record long enough to verify investment performance has not existed." and "We have found problems in the investment process." of 4 (12.9%).

(8) Question to the respondents who had once adopted SRI but have not currently adopted
it.(Q19)
Q19. This is the question to the respondents answering "We had once adopted SRI but have not currently adopted it." to Q12. Please choose one or more from the following options as the reasons why you have dropped SRI. (Multiple answers allowed.) There are no such respondents.
(9) Q1 to the 289 respondents who have not currently adopted SRI and will not consider its
adoption in future.
< Reasons not to consider the adoption of SRI > (Q20) Q20. This is the question to the respondents answering "We have not currently adopted SRI and will not consider its adoption in future." to Q12. Please choose one or more from the following options as the reasons why you have not currently adopted SRI and will not consider its adoption in future. (Multiple answers allowed.) As for the reasons why such respondents have not currently adopted SRI and will not consider its adoption in future, the number of respondents answering "The information about SRI is insufficient." is 140 (31.1%), the largest, which is followed by "SRI has not been established as an investment style." of 68 (15.1%) and "There are no incentives to adopt SRI." of 66 (14.7%). In addition, as for "Others," many respondents cited reasons suggesting that they have not selected investment products at their own discretion, such as "We have invested in commingled funds." and "We have entrusted our investment to an investment institution."
(10) Q2 to the 289 respondents who have not currently adopted SRI and will not consider its adoption in future. <Prerequisites to consider the adoption of SRI> (Q21) Q21. This is the question to the respondents answering "We have not currently adopted SRI and will not consider its adoption in future." to Q12. Please choose one or more from the following options as the prerequisites to consider the adoption of SRI. (Multiple answers allowed.) The prerequisites for such respondents to consider the adoption of SRI are shown in Table and Graph 27. The number of respondents answering "Sufficient information about SRI is accessible." is 122 (22.3%), the largest, which is followed by "A track record long enough to be verified is needed." of 112 (20.4%) and "The advantages over other active funds must be clearly proven." of 99 (18.1%).
(11) Question to the 40 respondents thinking that the track record is insufficient. < Period long enough to verify investment performance > (Q22) Q22. This is the question to the respondents answering "A track record long enough to verify investment performance is needed." to Q17 and those answering "A track record long enough to verify investment performance has not existed." to Q18. Please choose one of the following options as the sufficient length of such track record. As for the period long enough to verify investment performance selected by the above 40 respondents answering "A track record long enough to verify investment performance is needed." to Q17 or answering "A track record long enough to verify investment performance has not existed." to Q18, the number of respondents answering "3 to 5 years" is 25 (62.5%), the largest, which is followed by "5 to 10 years" of 13 (32.5%) and "More than 10 years" of 1 (2.5%). Some SRI funds have already had their three to five-year-long track records, and an increasing number of SRI funds will be able to meet this prerequisite in the next two to three years. Therefore, the lack of track records will be solved over time.

(12) Question to the 51 respondents thinking that they cannot expect SRI to improve
investment performance. < Reasons why respondents cannot expect SRI to improve investment performance > (Q23) Q23. This is the question to the respondents answering "We cannot expect SRI to improve investment performance (excess return)." to Q18 or Q20. Please choose one or more from the following options as the reason(s) why you cannot expect SRI to improve investment performance (excess return). (Multiple answers allowed.) As for the reasons why the above 51 respondents cannot expect SRI to improve investment performance, the number of respondents answering "It has not been proven that SRI can offer performance advantages." is 31 (33.7%), the largest, which is followed by "Compared with other investment approaches, we cannot find any clear advantages on SRI." of 30 (32.6%) and "Some bias is likely to emerge in selecting issues." of 15 (16.3%).

4. Proposals from outsiders
This survey also asked respondents not only whether or not they have received outsiders' proposals for SRI but also about the contents of and satisfaction with such proposals. The results are as follows:
(1) Proposals from outsiders (Q24)
Q24. Have you ever received outsiders' proposals for the adoption of SRI? (Multiple answers allowed.) As for the proposals for SRI from outsiders such as investment institutions and consulting firms, the numbers of respondents answering "We have received proposals from investment institutions," "We have received proposals from consulting firms." and "We have never received proposals." are 173 (37.1%), 1 (0.2%) and 286 (61.4%), respectively.
(2) Question 1 to the 173 respondents who have received proposals from outsiders. < Contents of outsiders' proposals > (Q25) Q25. This is the question to the respondents answering "We have received proposals from investment institutions." or "We have received proposals from consulting firms." to Q24. What kind of proposals have you received? (Multiple answers allowed.) The contents of outsiders' proposals received by such respondents are shown in Table and Graph 31. The number of respondents answering "As a kind of diversified investment." is 83 (28.8%), the largest, which is followed by "As a new investment approach of active management." of 70 (24.3%) and "As a measure to improve investment performance (excess return)." of 59 (20.5%). [Table and Graph 31] Contents of outsiders' proposals N=288 (Multiple answers allowed.) (3) Question 2 to the 173 respondents who have received proposals from outsiders.
Q26. This is the question to the respondents answering "We have received proposals from investment institutions." or "We have received proposals from consulting firms." to Q24. Are you satisfied with such proposals? (Multiple answers allowed.) As for such respondents' satisfaction with outsiders' proposals, the number of respondents answering "We understand but are not satisfied." is 80 (46.2%), the largest, which is followed by "We are completely satisfied." of 52 (30.1%), "We cannot understand well." of 21 (12.1%) and "The proposals lack clarity and we are not satisfied." of 18 (10.4%). The total of the respondents answering "We understand but are not satisfied." and those answering "The proposals lack clarity and we are not satisfied." accounts for 56.6%, the majority. This shows that the satisfaction with such proposals is low.

(4) Contents of and satisfaction with outsiders' proposals
The results of the cross tabulation of the contents of and satisfaction with outsiders' proposals are as follows: As for the contents falling under the categories of "As an investment with a small downside risk." and "As part of extensive CSR efforts," the respective ratios of the respondents answering "We are completely satisfied." are high. However, as for the contents falling under the categories of "As a kind of diversified investment," "As a measure to improve investment performance." and "As a new investment approach of active management," the respective ratios of the respondents answering "We understand but are not satisfied." are high.

(5) Question to the 286 respondents who have never received proposals from outsiders.
< Interest in SRI > (Q27)
Q27. This is the question to the respondents answering "We have never received proposals." to Q24. Are you interested in SRI? As for such respondents' interest in SRI, the number of respondents answering "Although we are interested in SRI, our current circumstances do not allow us to receive proposals." is 88 (30.8%), the largest, which is followed by "It is acceptable only to receive proposals." of 87 (30.4%), "We are not sure." of 57 (19.9%) and "We are not interested in SRI." of 46 (16.1%).

(6) Question to the 46 respondents who are not interested in SRI
<Reasons why respondents are not interested in SRI > (Q28)
Q28. This is the question to the respondents answering "We are not interested in SRI." to Q27. Please choose one or more from the following options as the reason(s) why you are not interested in SRI. (Multiple answers allowed.) As for the reasons why such respondents are not interested in SRI, the number of respondents answering "We do not know SRI well." is 31(62.0%), the largest, which is followed by "There are still many issues for the adoption of SRI." of 7(14.0%), and "We cannot support the idea of SRI." of 4(8.0%).

5. Future issues
As for the mid to long-term influence and institutional issues of SRI, the results are as follows:
(1) The mid to long-term influence of SRI (Q29)
Q29. What do you think of the mid to long-term (5 to 10 years) influence of SRI? Please choose one of the following options and write down the reason. As for the mid to long-term influence of SRI, the number of respondents answering "Like those in other countries, the influence will increase." is 217 (46.7%), the largest, which is followed by "We cannot predict the future development." of 155 (33.3%), "The influence will not change as it is." of 59 (12.7%), "SRI is a short-term fad and will lose its influence." of 16 (3.4%) and "The influence will decrease from the current level." of 5 (1.1%).
As for the reasons for their chosen answers concerning the mid to long-term influence of SRI, the respondents gave reasons, such as "The social demand will increase," "The importance of CSR will increase," "Global warming and environmental issues," "The pressure from foreign countries," "SRI can offer little investment advantages." and "The future influence depends on the future efforts."
(3) Corporate governance (Q30)
Q30. Do you consider the corporate governance of your investment targets in your investment activities? The consideration of the corporate governance of investment targets is shown in Table and Graph 37. The number of respondents answering "We have not especially considered." is 407 (87.5%), the largest, which is followed by "We are now considering the adoption of corporate governance in our voting-right exercise policy." of 13 (2.8%), "We have already adopted corporate governance in our voting-right exercise policy." of 12 (2.6%) and "We have invested in governance funds." of 9 (1.9%).

(3) ESG (Q31)
Q31. ESG is the idea that, upon making investment decisions, a corporation's governance and its environmental and social efforts should be equally considered as necessary non-financial information. What do you think of such idea? Please choose an answer close to your opinion from the following options: As for whether or not a corporation's governance and its environmental and social efforts should be equally considered, the numbers of respondents answering "The components of ESG are mutually different and cannot be equally considered," "The components of ESG are mutually different but it is adequate to equally consider them in future." and "We do not feel any sense of incongruity in equally considering the components of ESG." are 100 (21.5%), 112 (24.1%) and 213 (45.8%), respectively.

(4)  Institutional issues (Q32)
Q32. For the future dissemination of SRI, what kind of institutional issues should be addressed? Please choose any of the following options that apply. As for institutional issues, the number of respondents answering "The establishment of an appropriate investment process is needed." is 110 (25.8%), the largest, which is followed by "It is necessary to legally require the disclosure of CSR information on financial statement reports etc." of 64 (15.0%) and "It is necessary to make it clear that the adoption of SRI does not contradict fiduciary duties." of 61 (14.3%).

III. Survey results (Cross tabulation)
1)  Analysis by investment asset size
This section provides the following analysis by investment asset size.
1. Awareness of SRI and PRI
As for the awareness of CSR and SRI, the breakdown by investment asset size of the respondents answering "Yes, we know." is as follows: The larger the investment asset size, the higher the awareness of “CSR” and “SRI”.

[Table and Graph 41] Awareness of SRI and investment asset size

On the other hand, as for the awareness of PRI, the breakdown by investment asset size of the respondents answering "No, we do not know." is shown in Table and Graph 42. The smaller the investment asset size, the higher the ratio of such respondents.

[Table and Graph 42] Awareness of PRI and investment asset size
2. Adoption of SRI
(1)  Adoption of SRI and investment asset size
The breakdown by investment asset size of adoption of SRI is as follows: In any investment asset size, the ratio of the respondents answering "We have not currently adopted SRI and will not consider its adoption in future." is high. However, among the mid and large-sized respondents, such ratios are relatively low.

(2)  Reasons for the adoption of SRI and investment asset size
The breakdown by investment asset size of the reasons for the adoption of SRI is shown in Table and Graph 44. In any investment asset size, the ratio of the respondents answering "We, as a pension plan, have supported the idea of SRI." is high. On the other hand, as for the answer of "We have received proposals from investment institutions," the ratios in the medium and large sizes are high, but, the ratio in the small size is zero.

(3) Prerequisites to adopt SRI and investment asset size
The breakdown by investment asset size of the prerequisites for the respondents answering "We have not currently adopted SRI but are considering its adoption." to adopt SRI is as follows: In any investment asset size, the ratio of respondents answering "Sufficient information about SRI is needed." is the highest. On the other hand, as for the answers of "It is necessary to make it clear that the adoption of SRI does not contradict fiduciary duties." and "Consulting firms positively recommend the adoption," the larger the investment asset size, the higher the ratios of the respondents choosing such answers.

(4) Reasons to decide not to adopt SRI and investment asset size
"We have decided not to adopt SRI after considering its adoption." have decided not to adopt SRI is as follows: Among the small-sized respondents, the ratio of those answering "We have found problems in the investment process." is the highest. Among those medium-sized, the ratio of those answering "The information about SRI is insufficient." is the highest. Finally, among those large-sized, the ratio of those answering "We cannot expect SRI to improve investment performance." is the highest. This shows that the reasons vary, depending on the investment asset size.
(5) Reasons not to consider the adoption of SRI and investment asset size The breakdown by investment asset size of the reasons why the respondents answered "We have not currently adopted SRI and will not consider its adoption in future." is shown in Table and Graph 47. Regardless of the size of the investment asset, the ratios of answers of "The information about SRI is insufficient," "SRI has not been established as an investment style." and "There are no incentives to adopt SRI." are high. On the other hand, as for the answer of "We have found problems in the investment process," the larger the investment asset size, the higher the ratio of respondents choosing such answer.

(6) Prerequisites to consider the adoption of SRI and investment asset size
The breakdown by investment asset size of the prerequisites for the respondents answering "We have not currently adopted SRI and will not consider its adoption in future." to consider the adoption of SRI is as follows: In any investment asset size, the ratios of answers of "Sufficient information about SRI is accessible," "A track record long enough to be verified is needed." and "Advantages over other active funds must be clearly proven." are high. In addition, as for the answer of "The advantages over other active funds must be clearly proven," the larger the investment asset size, the higher the ratio of the answer. Moreover, as for the answer of "Sufficient information about SRI is accessible," the smaller the investment asset size, the higher the ratio of the answer.

3. Proposals from outsiders
(1)  Proposals from outsiders and investment asset size
The breakdown by investment asset size of proposals for SRI from outsiders is as follows: Among the large-sized respondents, the ratio of those answering "We have received proposals from investment institutions." is the highest. However, in the medium and small sizes, the ratios of the respondents answering "We have never received proposals." are the highest, respectively.

(2) Contents of outsiders' proposals and investment asset size
The breakdown by investment asset size of the contents of outsiders' proposals is as follows: In any investment asset size, the ratios of the answers of "As a kind of diversified investment." and "As a new investment approach of active management." are high. On the other hand, as for the answer of "As a measure to improve investment performance (excess return)," the ratios in the medium and large sizes are high. And, as for the answer of "As part of extensive CSR efforts," the ratio is relatively high among the small-sized respondents.

(2) Satisfaction with outsiders' proposals and investment asset size
The breakdown by investment asset size of the satisfaction with outsiders' proposals is as follows: In any investment asset size, the ratio of the respondents answering "We understand but are not satisfied." is the highest. Among others, such ratio among the large-sized respondents reaches 60%, which suggests that the large-sized respondents' satisfaction is the lowest.

(4) Interest in SRI and investment asset size
The breakdown by investment asset size of the interest in SRI of the respondents never having received outsiders' proposals is as follows: Among the small-sized respondents, the ratio of those answering "Although we are interested in SRI, our current circumstances do not allow us to receive proposals." is the highest. In the medium and large sizes, the respective ratios of the respondents answering "It is acceptable only to receive proposals." are the highest.

Future issues
4.
(1) The mid to long-term influence of SRI and investment asset size
The breakdown by investment asset size of the mid to long-term influence of SRI is as follows: In any investment asset size, the ratio of the respondents answering "Like those in other countries, the influence will increase." is the highest.

(2) Institutional issues and investment asset size
The breakdown by investment asset size of institutional issues is as follows: In the medium and large sizes, the respective ratios of respondents answering "The establishment of an appropriate investment process is needed." are the highest. On the other hand, among the small-sized respondents, the ratio of those answering "It is necessary to legally require the disclosure of CSR information on financial statement reports etc." is the highest.

2) Analysis by mother company’s CSR efforts
This section provides the following analysis by mother company's CSR efforts.
1. Awareness of SRI and PRI
The breakdown by mother company's CSR efforts of the awareness of CSR and SRI is as follows: The ratio of the respondents answering "Yes, we know." is the highest in the category of "Our mother company has promulgated its CSR policy and has actively made CSR efforts."
In addition, the breakdown by mother company's CSR efforts of the awareness of PRI is as follows: In any category other than "Our mother company has promulgated its CSR policy and has actively made CSR efforts," the ratio of the respondents answering "No, we do not know." is the highest.

2. Adoption of SRI
(1)  Adoption of SRI and mother company's CSR efforts
The breakdown by mother company's CSR efforts of the adoption of SRI is as follows: In any category of mother company's CSR efforts, the ratio of the respondents answering "We have not currently adopted SRI and will not consider its adoption in future." is the highest. On the other hand, in the categories of "Our mother company has promulgated its CSR policy, but its actual CSR efforts are under consideration." and "Our mother company is considering the preparation and promulgation of its CSR policy," the respective ratios of the respondents answering "We have not currently adopted SRI but are considering its adoption." are also high.
(2) Reasons for the adoption of SRI and mother company’s CSR efforts The breakdown by mother company's CSR efforts of the reasons for the adoption of SRI is as follows: In any category of mother company's CSR efforts, the ratios of the answers of "We, as a pension plan, have supported the idea of SRI." and "We have received proposals from investment institutions." are high. On the other hand, some respondents in the category of "Our mother company has promulgated its CSR policy and has actively made CSR efforts." answered "We have deemed the adoption of SRI to be part of our extensive CSR efforts," or "Our mother company gave us some instruction or proposal concerning the adoption of SRI."

(3) Prerequisites for the adoption of SRI and mother company’s CSR efforts
The breakdown by mother company's CSR efforts of the prerequisites for the respondents answering "We have not currently adopted SRI but are considering its adoption." to adopt SRI is as follows: In any category of mother company's CSR efforts, the ratios of the answers of "Sufficient information about SRI is needed." and "The reasonability of SRI as an investment approach must be proven." are high. On the other hand, as for the answer of "A track record long enough to verify investment performance is needed," the ratio is relatively high among the respondents answering "Our mother company has promulgated its CSR policy and has actively made CSR efforts." or "Our mother company has promulgated its CSR policy, but its actual CSR efforts are under consideration."

(4) Reasons to decide not to adopt SRI and mother company’s CSR efforts
The breakdown by mother company's CSR efforts of the reasons why the respondents answering "We have decided not to adopt SRI after considering its adoption" have decided not to adopt SRI is shown in Table and Graph 61. "The information about SRI is insufficient." is the reason that the respondents in any category of mother company's CSR efforts commonly cited. On the other hand, among respondents answering "Our mother company has promulgated its CSR policy and has actively made CSR efforts," the ratios of the answers of "A track record long enough to verify investment performance has not existed." and "We have found problems in the investment process." are relatively high. In addition, among the respondents answering "Our mother company has neither promulgated nor considered its CSR policy," the ratios of the answers of "We cannot expect SRI to improve investment performance." and "The people concerned have not accepted the idea of SRI." are relatively high.
(5) Reasons not to consider the adoption of SRI and mother company’s CSR efforts The breakdown by mother company's CSR efforts of the reasons why the respondents answered "We have not currently adopted SRI and will not consider its adoption in future." is as follows: In any category of mother company's CSR efforts, the ratios of the answers of "The information about SRI is insufficient." and "SRI has not been established as an investment style." are high.
(6) Prerequisites to consider the adoption of SRI and mother company’s CSR efforts The breakdown by mother company's CSR efforts of the prerequisites for the respondents answering "We have not currently adopted SRI and will not consider its adoption in future." to consider the adoption of SRI is as follows: In any category of mother company's CSR efforts, the ratios of the answers of "Sufficient information about SRI is accessible," "A track record long enough to be verified is needed." and "The advantages over other active funds must be clearly proven." are high.

3. Proposals from outsiders
(1)  Proposals from outsiders and mother company's CSR efforts
The breakdown by mother company's CSR efforts of proposals for SRI from outsiders is as follows: Among the respondents answering "Our mother company has promulgated its CSR policy and has actively made CSR efforts," the ratio of those answering "We have received proposals from investment institutions." is high. However, in any category other than the above, the ratio of the respondents answering "We have never received proposals." is high.

(2) Contents of outsiders' proposals and mother company's CSR efforts
The breakdown by mother company's CSR efforts of the contents of outsiders' proposals is as follows: In any category of mother company's CSR efforts, the ratios of the answers of "As a kind of diversified investment." and "As a new investment approach of active management." are high. On the other hand, as for the answer of "As part of extensive CSR efforts," the ratio is high among the respondents answering "Our mother company has promulgated its CSR policy and has actively made CSR efforts," "Our mother company has promulgated its CSR policy, but its actual CSR efforts are under consideration." or "Our mother company is considering the preparation and promulgation of its CSR policy."
(3) Satisfaction with outsiders' proposals and mother company's CSR efforts The breakdown by mother company's CSR efforts of the satisfaction with outsiders' proposals is as follows: In any category of mother company's CSR efforts, the ratio of the respondents answering "We understand but are not satisfied." is high.

(4) Interest in SRI of the respondents who have never received outsiders' proposals and mother
company’s CSR efforts
The breakdown by mother company's CSR efforts of the interest in SRI of the respondents who have never received outsiders' proposals is as follows: In any category of mother company's CSR efforts, the ratios of the answers of "It is acceptable only to receive proposals." and "Although we are interested in SRI, our current circumstances do not allow us to receive proposals." are high.

4. Future issues
(1) The mid to long-term influence of SRI and mother company’s CSR efforts
The breakdown by mother company's CSR efforts of the mid to long-term influence of SRI is as follows: In any category of mother company's CSR efforts, the ratio of the respondents answering "Like those in other countries, the influence will increase." is the highest. On the other hand, as for the answer of "The influence will not change as it is," the ratio is relatively high among the respondents answering "Our mother company has promulgated its CSR policy and has actively made CSR efforts." In addition, as for the answer of "We cannot predict the future development," the ratio is relatively high among the respondents answering "Our mother company has neither promulgated nor considered its CSR policy." or "We are not sure."

(2) Institutional issues and mother company’s CSR efforts
The breakdown by mother company's CSR efforts of the institutional issues of SRI is as follows: In any category of mother company's CSR efforts, the ratio of the respondents answering "The establishment of an appropriate investment process is needed." is the highest. On the other hand, as for the answer of "It is necessary to make it clear that the adoption of SRI does not contradict fiduciary requirement," the ratio is relatively high among the respondents answering "Our mother company has promulgated its CSR policy and has actively made CSR efforts."

3) Analysis by plan type
This section provides the following comparative analysis between employee's pension funds and fund-type defined-benefit corporate pension plans, both of which have respectively accounted for significant portions of the total valid responses.
1. Awareness of CSR and PRI
The breakdown by plan type of the awareness of CSR and SRI is as follows: Among both employee's pension funds and fund-type defined-benefit corporate pension plans, the ratios of the respondents answering "Yes, we know." are the highest. However, while the ratios of the answers of "Although we have heard of it, we do not know the details well." and "No, we do not know." are relatively high among employee's pension funds, the ratio of the respondents answering "Yes, we know." is relatively high among fund-type defined-benefit corporate pension plans.
In addition, the breakdown by plan type of the awareness of PRI is shown in Table and Graph 72. Among both employee's pension funds and fund-type defined-benefit corporate pension plans, the ratios of the respondents answering "No, we do not know." are the highest. However, among fund-type defined-benefit corporate pension plans, the ratios of the answers of "Although we have heard of it, we do not know the details well." and "Yes, we know." are relatively high.

(1)  Adoption of SRI and plan type
The breakdown by plan type of the adoption of SRI is as follows: Among both employee's pension funds and fund-type defined-benefit corporate pension plans, the ratios of the respondents answering "We have not currently adopted SRI and will not consider its adoption in future." are the highest. However, among fund-type defined-benefit corporate pension plans, the ratios of the answers of "We have already adopted SRI." and "We have not currently adopted SRI but are considering its adoption." are relatively high.

(2) Reasons for the adoption of SRI and plan type
The breakdown by plan type of the reasons for the adoption of SRI is shown in Table and Graph 74. Among both employee's pension funds and fund-type defined-benefit corporate pension plans, the ratios of the answers of "We, as a pension plan, have supported the idea of SRI," "We have received proposals from investment institutions." and "We can expect SRI to serve as a diversified investment
approach." are high.
As for the answer of "We have deemed the adoption of SRI to be part of our extensive CSR efforts," the ratio is relatively low among employee's pension funds, and, by contrast, the ratio is relatively high among fund-type defined-benefit corporate pension plans.

(3) Prerequisites for the adoption of SRI and plan type
The breakdown by plan type of the prerequisites for the respondents answering "We have not currently adopted SRI but are considering its adoption." to adopt SRI is as follows: Among both employee's pension funds and fund-type defined-benefit corporate pension plans, the ratios of the answers of "Sufficient information about SRI is needed." and "The reasonability of SRI as an investment approach must be proven." are high.

(4) Reasons to decide not to adopt SRI and plan type
The breakdown by plan type of the reasons why the respondents answering "We have decided not to adopt SRI after considering its adoption." have decided not to adopt SRI is as follows: Among both employee's pension funds and fund-type defined-benefit corporate pension plans, the ratios of the answers of "We cannot expect SRI to improve investment performance." and "A track record long enough to verify investment performance has not existed." are high. On the other hand, while the ratio of the respondents answering "The information about SRI is insufficient." is the highest among employee's pension funds, the ratio of those answering "We have found problems in the investment process." is the highest among fund-type defined-benefit corporate pension plans. In addition, among employee's pension funds, the ratio of the respondents answering "The people concerned have not accepted the idea of SRI." is not zero.

(5) Reasons not to consider the adoption of SRI and plan type
The breakdown by plan type of the reasons why the respondents answered "We have not currently adopted SRI and will not consider its adoption in future." is shown in Table and Graph 77. Among both employee's pension funds and fund-type defined-benefit corporate pension plans, the ratios of the answers of "The information about SRI is insufficient," "SRI has not been established as an investment style." and "There are no incentives to adopt SRI." are high. As for the answer of "We cannot expect SRI to improve investment performance," the ratio is relatively high among employee's pension funds, and, by contrast, the ratio is relatively low among fund-type defined-benefit corporate pension plans.

(6) Prerequisites to consider the adoption of SRI and plan type
The breakdown by plan type of the prerequisites for the respondents answering "We have not currently adopted SRI and will not consider its adoption in future." to consider the adoption of SRI is as follows: Among both employee's pension funds and fund-type defined-benefit corporate pension plans, the ratios of the answers of "Sufficient information about SRI is accessible," "A track record long enough to be verified is needed." and "The advantages over other active funds must be clearly proven." are high.

3. Proposals from outsiders
(1)  Proposals from outsiders and plan type
The breakdown by plan type of proposals for SRI from outsiders is as follows: Among both employee's pension funds and fund-type defined-benefit corporate pension plans, the ratios of the respondents answering "We have never received proposals." are the highest. Among fund-type defined-benefit corporate pension plans, the ratio of the respondents answering "We have received proposals from investment institutions." is relatively high.

(2) Contents of outsiders’ proposals and plan type
The breakdown by plan type of the contents of outsiders' proposals is as follows: Among both employee's pension funds and fund-type defined-benefit corporate pension plans, the ratios of the answers of "As a kind of diversified investment," "As a new investment approach of active management." and "As a measure to improve investment performance (excess return)." are high. As for the answer of "As part of extensive CSR efforts," the ratio is relatively low among employee's pension funds, and, by contrast, the ratio is relatively high among fund-type defined-benefit corporate pension plans.

(3) Satisfaction with outsiders’ proposals and plan type
The breakdown by plan type of the satisfaction with outsiders' proposals is as follows: Among both employee's pension funds and fund-type defined-benefit corporate pension plans, the ratios of the respondents answering "We understand but are not satisfied." are the highest. Among employee's pension funds, the ratio of the respondents answering "We cannot understand well." is relatively high.

(4) Contents of and satisfaction with outsiders' proposals
The breakdown by plan type of the cross tabulation of the contents of and satisfaction with outsiders' proposals is shown in Table and Graph 82. As for the contents falling under the categories of "As an investment with a small downside risk." and "As part of extensive CSR efforts," the ratios of the respondents answering "We are completely satisfied." are the highest among both employee's pension funds and fund-type defined-benefit corporate pension plans. On the other hand, as for the contents falling under the categories of "As a kind of diversified investment." and "As a new investment approach of active management," the ratios of the respondents answering "We understand but are not satisfied." are the highest among both employee's pension funds and fund-type defined-benefit corporate pension plans.

(5) Interest in SRI and plan type
The breakdown by plan type of the interest in SRI of the respondents who have never received outsiders' proposals is as follows: While the ratio of the respondents answering "It is acceptable only to receive proposals." is the highest among employee's pension funds, the ratio of those answering "Although we are interested in SRI, our current circumstances do not allow us to receive proposals." is the highest among fund-type defined-benefit corporate pension plans.

4. Future issues
(1) The mid to long-term influence of SRI and plan type
The breakdown by plan type of the mid to long-term influence of SRI is as follows: As for the answer of "The influence will not change as it is," the ratio is relatively low among employee's pension funds, and, by contrast, the ratio is relatively high among fund-type defined-benefit corporate pension plans. In addition, among employee's pension funds, the ratio of the respondents answering "Like those in other countries, the influence will increase." is relatively high.

(2) Institutional issues and plan type
The breakdown by plan type of the institutional issues is as follows: Among both employee's pension funds and fund-type defined-benefit corporate pension plans, the ratios of the answers of "The establishment of an appropriate investment process is needed," "It is necessary to legally require the disclosure of CSR information on financial statement reports etc." and "It is necessary to make it clear that the adoption of SRI does not contradict fiduciary duties." are high.
This is the question to the respondents answering"Yes,we know "to Q9
This is the question to the respondents answering"Yes,we know "to Q7
This is the question to the respondents answering"Yes,we know "to Q9
Q10 Please choose one or more from the following options as your awareness channels of PRI Q12 Have you currently adopted SRI in your asset investment?
This is the question to the respondents answering "We have already adopted SRI"to Q12
This is the question to the respondents answering "We have already adopted SRI"to Q12 Q15 Are you satisfied with the investment process of SRI? (screening method, selection of issues,etc)
This is the question to the respondents answering "We have already adopted SRI"to Q12
This is the question to the respondents answering "We have already adopted SRI"to Q12 Q14-2 How much is the present ratio of the adopted SRI to your domestic stocks?
This is the question to the respondents answering "We have already adopted SRI"to Q12
Q17 This is the question to the respondents answering "We have not currently adopted SRI but are considering its adoption "to Q12.Please choose one or more from the following options
Q19 This is the question to the respondents answering "We had once adopted SRI but have not currently adopted it" to Q12.Please choose one or more from the following options as the reasons why you have dropped SRI. →There are no such respondents Q20 This is the question to the respondents answering "We have not currently adopted SRI and will not consider its adoption in future" to Q12.Please choose one or more from the following options as the reasons why you have not currently adopted SRI and
Q22 This is the question to the respondents answering "A track record long enough to verify investment performance is needed" to Q17 or answering "A track record long enough to verify investment performance has not existed"
Q18 This is the question to the respondents answering "We have decided not to adopt SRI after considering its adoption"to Q12.Please choose one or more from the following options as the reason
Q21 This is the question to the respondents answering "We have not currently adopted SRI and will not consider its adoption in future" to Q12.Please choose one or more from the following
Q23 This is the question to the respondents answering "We cannot expect SRI to improve investment performance"to Q18 or Q20.Please choose one or more
This is the question to the respondents answering "We have received proposals from investment institutions"or"We have received proposals from consulting firms" to Q24. Q25 What kind of proposals have you received?
This is the question to the respondents answering "We have received proposals from investment institutions"or"We have received proposals from consulting firms" to Q24.
This is the question to the respondents answering "We have never received proposals" to Q24.
This is the question to the respondents answering "We are not interested in SRI"to Q27. Q28 Please choose one or more from the following options as the reason why you are
Q29 What do you think of the mid to long-term(5 to 10 years) influence of SRI?
Q30 Do you consider the corporate governance of your investment targets
Q32 For the future dissemination of SRI,what kind of institutional issue should be addressed?
Q31 ESG is the idea that, upon making investment decisions, a corporation's governance and   its environmental and social efforts should but equally considered as necessary non-financial information. What do you think of such idea?
number of responses.