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GIC recognises that new investment opportunities will emerge as regulators, consumers, and businesses increasingly act on sustainability issues. We aim to capture these opportunities by:
To align existing energy systems to a pathway aligned to net zero by 2050, the world will need to incur over US$126 trillion of additional capital expenditures from 2021-2050. At the same time, investments are needed to shore up aging infrastructure and physical assets, to ensure that businesses remain resilient to increasing physical stresses resulting from global warming.
The secular trends of climate change mitigation and adaptation are playing out simultaneously and require long-term investment capital to enable the scaling up of solutions. GIC is taking more steps to capture sustainability-related investment opportunities via the Sustainable Investment Fund (SIF) and by creating focused teams within asset classes, including:
Our investment groups across public and private markets integrate sustainability considerations into their decision-making process, focusing on the issues material to each company’s long-term economic prospects. For example, our investment groups examine the carbon intensity of companies in the energy sector relative to their peer group. For significant positions, they may also conduct carbon price stress-testing against GIC’s set of climate scenarios.
Teams regularly engage with portfolio companies on sustainability risks and opportunities, and vote responsibly. We also engage with external fund managers and general partners on their sustainability policies and practices, and ensure our investments with them are managed in a manner consistent with GIC’s sustainability approach.
Sustainability issues across the domains of the environment, social issues, and business governance pose investment risks. We protect our investments by:
How we operate sustainably as an organisation is as important as the way we invest. We do this by:
We are making serious efforts to reduce our carbon emissions. We currently offset our residual emissions with credits that have been certified by globally-recognised carbon credit programmes. We will adapt our offset strategy as we monitor the developments in the global and local standards on how corporates can best manage their residual emissions.
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