This article is an extract from the “Investing Sustainably” chapter of the GIC Report FY2020/21, with visuals by Idea Ink.
Sustainability is a key priority for GIC given the impact of climate risks, and changing regulations and consumer preferences on the value of physical assets and companies over time. It is thus core to GIC’s mandate, which is to preserve and enhance the international purchasing power of the reserves under our management.
As a long-term investor, we seek to 1) invest in sustainability whilst protecting our portfolio assets from being negatively affected; 2) integrate sustainability into our portfolio, strategy and processes, in a way that recognises the diversity of the industries and markets that we operate in; 3) engage and support our investees and partners in their transition towards sustainability.
We take a holistic and considered approach towards sustainability across our investment and corporate processes, and do this through our Offence-Defence-Enterprise Excellence (ODE) framework.
Offence: Capturing opportunities
Offence focuses on capturing opportunities by integrating sustainability into our investment processes, actively engaging investee companies towards more sustainable outcomes, investing in ESG solutions and opportunities, actively greening our assets to be resilient to climate change risks, and incorporating sustainability signals into quantitative strategies.