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Responsible Investment

The NPS takes into account non-financial factors such as environmental, social and governance (ESG) aspects alongside financial factors in the investment decision-making process for equities and fixed income.

ESG Integration Process

The NPS strives to achieve ESG integration based on ESG evaluation. For listed domestic equities and some of the internally managed domestic fixed income, ESG evaluation is conducted twice a year, using a proprietary ESG evaluation system tailored to the characteristics of the National Pension Fund. In addition, ESG-related issues are frequently monitored while materiality assessments are undertaken, in order to actively identify and address material issues impacting value creation.

ESG Evaluation(ESG Rating:ESG scores and ratings on listed domestic equities and some of the internally manged domestic fixed income are evaluated twice a year -Periodically, Controversial Issue Monitoring & Materiality Assessment:ESG controversial issues are reflected into ESG ratings-Occasionally->ESG System)ESG Integration(ESG factors are considered in investment decisions->Domestic Equities and Fixed Income(In-house)