Social

The Japanese pension fund reported improved ESG ratings for portfolio companies following third-party engagement.

Climate adaptation was found to have the least signatory support, compared to other sustainability topics.

Momentum is building for sustainable finance in Japan, with topics such as transition finance and human rights rapidly rising up the agenda, says Arisa Kishigami.

The company had previously been the target of high-profile exclusions and divestments.

The updated framework is billed as the first international agreement to define the climate responsibility of companies.

Nordic investor also adds Brookfield AM to exclusion list, ramps up the use of principal adverse impacts (PAIs) to guide engagements.

Investors are increasingly concerned about company approaches to managing industrial relations, said PIRC and ShareAction.

These include new requirements on gender equality, board effectiveness and investor engagements.

Planned framework provisionally encompasses social and inequality-related risks and opportunities affecting financial stability and long-term enterprise value creation.

Progress has been steady, if slow, with a few bright spots.