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GIC is a long-term investor in a European specialty chemicals company, a supplier to the industrial and consumer sectors. The company develops innovative new products which help its customers reduce the amount of materials needed in their construction and industrial processes. Such savings also translate to reductions in carbon emissions. We encouraged the company to clearly communicate to both investors and customers the carbon-saving nature of its products, which it has done in its presentations.
We also discussed a series of diagnostic questions with the company, to further develop its methods for measuring and managing the full product life-cycle carbon footprint of its products and operations. The company is now more widely recognised as a provider of effective solutions in the global effort to reduce carbon emissions.
Duke Energy Indiana (DEI) – a subsidiary of Duke Energy, one of the largest energy holding companies in the U.S. – owns electric generation, transmission and distribution assets in Indiana. It is the largest regulated electric utility in the state, and serves around 850,000 customers. When GIC announced it was investing in DEI in 2021, DEI was dependent on coal-fired power plants to generate most of its electricity.
DEI is diversifying its power generation fleet across its footprint by investing in more renewables and natural gas-fired generation as it retires its coal-fired units over time to achieve its carbon reduction goals. Since 2010, DEI has retired over 1,100 MWs of coal-fired capacity, with plans to retire another estimated 1,600 MWs by the end of this decade. DEI is also investing in transmission and distribution for a smarter, more resilient, green-enabled grid.
GIC saw an opportunity to support DEI’s decarbonisation and transition to cleaner energy. We are well-aligned with DEI on sustainability matters. Duke Energy has a publicly announced goal of achieving net-zero carbon emissions by 2050. As a long-term investor, we intend to work with Duke Energy and DEI to explore opportunities to support decarbonisation while providing reliable service and competitive rates to DEI’s vast customer base.
Greenko Energy Holdings (“Greenko”) is one of India’s largest renewable energy companies, with an operating capacity diversified across wind, hydro, and solar assets. Greenko is working towards transforming itself into an intelligent energy utility platform capable of supplying affordable, reliable, schedulable, and flexible round-the-clock (RTC) renewable power to replace the fossil-based thermal power, through the use of energy storage, forecasting and digitisation capabilities.
With a core belief in sustainability both operationally and environmentally, Greenko’s efforts have supported consumer and business transitions toward a low-carbon future, delivered benefits to local communities, and ultimately, contributed to India’s economy. Since 2018, Greenko has adopted GRI Standards for sustainability reporting, which captures Greenko’s contribution towards achieving UN’s Sustainable Development Goals. As a long-term capital investor, GIC has played a key role in supporting Greenko in these efforts.
GIC invested in 8F Aquaculture Fund I, which founded Pure Salmon. As a member of the Board of Pure Salmon, GIC provides guidance and support on critical mergers and acquisitions, and internal capability building.
GIC believes that the fund offers an attractive risk-return as the RAS plants are located in specific markets where consumption of fresh salmon is high. Pure Salmon land-based production facilities would help increase the sustainable production of Atlantic salmon to meet the expected increase in demand. In addition, Pure Salmon’s local production for local consumption model eliminates the need for their produce to be flown to their customers, thus reducing carbon emissions from refrigerated airfreight. Pure Salmon’s first project is focused on building three RAS facilities in Japan, France and the US.
Land-based RAS farming allows a local and sustainable production of Atlantic salmon in a bio-secure environment without the use of antibiotics, pesticides and hormones. RAS plants produce salmon in a closed system of pools, keeping the fish in stress-free and pristine environment. The circularity of the RAS technology allows for up to 99% of the water to be recycled in the pools. In contrast to traditional ocean aquaculture, RAS farming reduces common risks of open net pen (ONP) farming, such as pollution from feed run-off, and bio-contamination between the farmed and wild fish stocks. By entirely removing the production from the sea, the impact on the environment and our oceans marine life and ecosystems is minimised.
8F and Pure Salmon are founding signatories of the United Nations Environment Program Sustainable Blue Economy Finance Initiative, the world’s first global framework dedicated to a sustainable ocean economy.
ecoATM is an electronic device recycling company that reduces e-waste in an economically attractive way. It uses kiosks installed across the US and Europe to collect used mobile devices and tablets. ecoATMs provide users with instant cash in exchange for devices collected, which the company then either re-sells, refurbishes or recycles. As of 2021, the company has collected e-waste from 28 million devices and diverted it away from landfills. This is the equivalent of saving over 12,000 tonnes of manufacturing emissions, and enough to power over 55,000 households with electricity for a year.
GIC provided the company with growth capital to expand its footprint of ecoATMs. As a result of GIC’s involvement, the company could scale its positive environmental impact quicker.
WSP is one of the world’s leading professional services firms, providing engineering and design services, as well as strategic advisory services to clients across a diverse range of sectors. In 2020, GIC provided equity financing for WSP’s acquisition of Golder, a global environmental consulting firm focused on bringing its experience in geosciences and environmental sustainability to clients in the mining, manufacturing, oil & gas, power, and infrastructure industries.
WSP, together with Golder, is well-positioned to play a strong advisory role in the green transition in the coming decades. With over 50,000 employees globally, and domain expertise in climate change advisory, environmental impact assessments and earth sciences, the company is set to meet the growing demand by countries, corporations and other industry stakeholders for environmental services and sustainable infrastructure development.
As a long-term investor, GIC is confident in the strategic merits of this transaction and are confident the sector will continue to flourish as businesses increasingly look to improve their sustainability practices.
GIC invested in Storegga, a company focused on carbon reduction and removal in early 2021. Storegga is developing a number of projects including carbon capture, transport and storage, hydrogen, and direct air capture that removes carbon from the air and stores it, just like the carbon sequestration that trees carry out when they photosynthesise.
Through its flagship Acorn Project, Storegga expects to store at least 20 megatonnes per year of carbon emissions in the UK by the mid-2030s. The carbon can be recycled or injected into the ground so that it does not get emitted into the atmosphere. GIC's investment will help Storegga scale up the Acorn Project, contribute to a planned direct air capture facility in the UK, and support ongoing business development activities by the company.