The largest pension fund in the world, Japan’s Government Pension Investment Fund (GPIF), has identified a “shockingly large gap” between its reported carbon emissions over the past two years, after including its Scope 3 emissions in its latest analysis.
The scheme, which manages more than $1.5tn, has published details of its entire greenhouse gas emissions supply chain - including difficult to measure Scope 3 emissions, which are those generated by the consumption and use of goods and services sold - for the first time.
The report is significant because critics of carbon footprinting by investors often point to the lack of credible assessment of Scope 3 emissions.
In its latest ESG Report, covering 2020, GPIF said that - for 7 of the 11 sectors in its equity portfolio - including “downstream Scope 3” emissions in the analysis contributed at least an additional 50% to total emissions, when compared to the previous year.
Breaking down t…