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Sustainability is an important investment issue and a key management priority. Our Sustainability Committee, which was formalised in 2016, is tasked to implement GIC’s sustainability framework, support and promote sound stewardship, and monitor and respond to emerging Environmental, Social, and Governance (ESG) issues, including climate change. The committee comprises senior leaders from across our investment, risk and corporate functions, and is chaired by our Chief Investment Officer of Fixed Income, who is also a member of the Group Executive Committee (GEC).
Our Sustainability Policy is applied across GIC’s investment and corporate processes. The investment committees across GIC are responsible for assessing and managing the relevant ESG and climate-related risks and opportunities for their asset classes and portfolios, and play a major role in ensuring compliance with the policy at every stage of the investment process.
The GIC Board and its supporting committees (Investment Board and Risk Committee), have oversight over the framework and management’s considerations related to climate-related risks and opportunities. Board and board committee members regularly advise GIC executives on emerging ESG and climate-related risks to monitor, and risk management methodologies to review.
The Sustainability Committee routinely engages the GEC, the Investment Board and the Risk Committee on broad trends and emerging risks that may affect our portfolio, as well as potential investment opportunities.
Sustainability trends and ESG risks have a profound and growing impact on both the physical and financial world. These factors shape the long-term prospects of companies and their long-term value.
We believe in taking a long-term and holistic approach towards sustainability across our investment and corporate processes. Our Sustainability approach is aligned to GIC’s O-D-E framework:
We believe that companies with good sustainability practices will offer prospects of better risk-adjusted returns over the long term. As regulators and consumers act on ESG and climate-related issues, and businesses rethink their operating models, new investment opportunities will open up.
We aim to capture these opportunities by:
As a long-term investor, we position our portfolio to weather a range of market and economic conditions by taking ESG risks into account at every stage of the investment process. As a responsible steward, we take a holistic and progressive approach to drive long-term positive outcomes for society. We believe it is more constructive to actively support our portfolio companies in their transition towards long-term sustainability, than to adopt a blunt divestment approach. We aim to protect our investments by:
The manner in which we operate sustainably as an organization is as important as the way we invest. Sustainability considerations are integrated into our corporate practices relating to governance, people, community and the environment.
We are committed to:
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