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We believe sustainable business practices are key to the long-term health of the global economy and that companies with strong sustainability practices offer prospects of better returns over time.
The relationship between sustainability and returns will become more evident over time as market externalities are priced in and incorporated into the decisions of regulators, businesses, and consumers.
At the same time, we must also integrate sustainability considerations in a way that recognises the diversity of industries and markets in which we operate, as well as the trade-offs and time needed for companies to make the transition. We believe this bottom-up, nuanced approach is more effective to support companies in their transition towards sustainability, compared to a top-down, rules-driven approach.
We are committed to supporting real-world decarbonisation and the global transition towards a net-zero economy through our investments and operations. We also seek out adaptation and resilience opportunities and proactively manage the of a changing climate.
By focusing on real-world outcomes rather than portfolio metrics, we believe our efforts can make a greater contribution to lasting positive change.
Sustainability is an enterprise priority at GIC, and we are guided by our sustainability framework: capturing opportunities, protecting our portfolio, and developing enterprise excellence and partnerships.
The GIC Board provides oversight of our sustainability approach and how management addresses climate-related risks and opportunities.
GIC’s Sustainability Committee, comprising senior leaders from our investment and risk functions, implements our framework and responds to environmental, social and governance issues.
A dedicated Sustainability Office deepens sustainability research and drives integration across the enterprise, complemented by sustainability professionals embedded within our investment and corporate departments.
By drawing investment and sustainability expertise closer together, we are better placed to capture opportunities, manage risk, and deepen our understanding of how sustainability issues impact our portfolio over the long term.
We capture opportunities by integrating sustainability into our investment processes, investing thematically, and engaging portfolio companies on material sustainability issues.
We deploy capital to providers of decarbonisation solutions, from renewable energy to lower-carbon industrial and manufacturing processes.
We support and finance credible transition strategies adopted by companies in traditionally high-emitting sectors.
We invest in adaptation solutions that help assets, businesses, and communities build resilience to a warming world.
We manage investment risk from environmental, social, and governance issues through enterprise-wide and bottom-up processes.
We protect our portfolio by regularly screening for material sustainability risks and stress-testing our holdings against a range of climate scenarios and factors such as carbon taxes and policy developments.
We track key sustainability metrics, including the portfolio’s emissions intensity, its transition prospects, and its exposure to acute and chronic physical risks.
Our investment teams practise active ownership to manage asset-level transition risks and conduct additional due diligence on investments exposed to greater sustainability risk, adjusting long-term valuation and risk models accordingly.
Operating sustainably is as important as investing sustainably.
We manage our operational footprint by housing our offices and data centres in green-certified buildings, using renewable energy where possible, and encouraging daily sustainable practices. To further reduce emissions, we also support high-quality carbon avoidance and removal projects.
We continuously improve our sustainability data and analytics for richer investment and operations insights across the enterprise.
As sustainable investing evolves and new standards develop, we believe all organisations, including GIC, can benefit from shared learning.
We collaborate with asset owners and investors to advance best practices through industry platforms. We participate in research and events with global thought leaders, institutions, and associations.
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