Japan’s Pension Fund GPIF Deploys $3.8 Billion to Gender Diverse Local Firms

  • World’s biggest pension backs firms scoring well on diversity
  • Japan looks to improve on 116th ranking for diversity

A pedestrian crosses a street near Yurakucho station in Tokyo.

Photographer: Noriko Hayashi/Bloomberg
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The world’s largest pension fund is allocating 500 billion yen ($3.77 billion) to an index of Japanese companies that do better on gender diversity as Japan looks to bolster its low ranking for diverse workplaces.

Japan’s $1.4 trillion Government Pension Investment Fund will passively invest in a new Japan-focused gender diversity index, the firm said in a statement Friday. The funds will be withdrawn from existing ESG indexes and track the Morningstar Japan ex-REIT Gender Diversity Tilt Index.