Participation of women in the workforce is considered an important element when it comes to environmental, social and governance-based investing, as the role of women in economic development is being increasingly emphasized. (Image: Ministry of Strategy and Finance)
SEOUL, Oct. 24 (Korea Bizwire) – Japanese pension fund executive Hiromichi Mizuno has said investment directed by environmental, social and governance issues is necessary to encourage women to participate in the labor force and build a sustainable society.
Mizuno, who is the chief investment officer of Japan’s Government Pension Investment Fund (GPIF), among the world’s biggest pension funds, called for South Korea to make investment decisions for the future generations, instead of short-sighted ones that focus on quick sales results, during a breakfast forum held in celebration of the first anniversary of the Korean unit of Women Corporate Directors (WCD) on Tuesday in Seoul.
Participation of women in the workforce is considered an important element when it comes to environmental, social and governance-based investing, as the role of women in economic development is being increasingly emphasized.
Mizuno, who chairs Japan’s $1.2 trillion national pension fund at the request of Japanese Prime Minister Shinzo Abe, says he first questioned whether to run a public fund the same way as the private sector, and became interested in environmental, social and governance issues, which are three central factors in assessing the sustainability of an investment.
The GPIF now invests in funds that follow the Morgan Stanley Capital International Japan Empowering Women Index.
While the CIO says not every investment decision is made based on the index, by introducing it, the GPIF sent a clear message in support of encouraging women in the work place.
“South Korea and Japan are similar particularly in that both are homogenous countries. I believe it’s hard to discuss diversity without gender equality,” Mizuno said.
“In the U.S. and the U.K., a campaign to raise the female proportion among board members to 30 percent is going on. While South Korean and Japan are both in the lower ranks when it comes to female economic activity, continuous effort can create change,” he added.
John Lee, the CEO of Meritz Asset Management Korea, also spoke at the forum, and said South Korea should follow in the footsteps of Japan in introducing an index dedicated to indicating women’s participation in the workforce, which will help engage more women in economic activities.
South Korea joined Women Corporate Directors last year, an organization that consists of female board members with around 3,500 members from 80 countries across the world, becoming the 74th member state.
M.H.Lee (mhlee@koreabizwire.com)
