Beware of ‘ESG Bubble,’ Says Ex-Chair of World’s Biggest Pension

  • Hirano says Japan’s GPIF needs to analyze ESG returns
  • Fund may need to discuss its exposure to Japan stocks: Hirano

Eiji Hirano 

Photographer: Shoko Takayasu/Bloomberg
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The former head of the board of governors at the world’s largest pension fund said he sees signs of a “bubble” in environmental, social and governance investing, and said the Japanese fund needs to consider how much ESG assets contribute to returns.

Eiji Hirano, who was chairman of the board of governors of Japan’s Government Pension Investment Fund from 2017 until earlier this year, presided over a tumultuous period for the fund as it became a world leader in ESG investments. The fund now needs to reassess its approach to ESG, he said.