Learn Who We Are
Purpose of Funds
Our Leadership
Our History
Our Values
Learn How We Invest
Our Core Strengths
Investment Framework
Learn Our portfolio
Our Performance
GIC Reports
Learn More
100%
Read our minds
Subscribe to ThinkSpace11
Have questions? We have the answers
Locate and connect with us globally
If you have any questions, please contact us
Stay one thought ahead. Get our latest insights in your inbox.
Sustainability is fundamental to the long-term health of the global economy. It is integral to GIC’s mandate, which is to preserve and enhance the international purchasing power of the reserves under our management.
We believe that companies with strong sustainability practices offer prospects of better returns over the long term, and that this relationship will strengthen over time as market externalities get priced in and incorporated into the decisions of regulators, businesses, and consumers.
We take a holistic and long-term approach towards sustainability across our investment and corporate processes. Investments may entail trade-offs between different sustainability objectives, especially in the short term. GIC integrates sustainability in a way that recognises the diversity of industries and markets in which we operate, and the trade-offs and time needed for companies to make the transition.
GIC is committed to enabling the global transition to a net-zero economy, through our investments and operations. We believe it is more constructive to support companies in their transition towards long-term sustainability, than to mechanically divest from certain industry sectors. To do this, we have begun to step up active engagements with portfolio companies on their climate transition plans, and fund the adoption and scaling-up of green technologies.
Sustainability is a top management priority at GIC. The GIC Board has oversight of GIC’s sustainability approach and management’s considerations on climate-related risks and opportunities.
GIC’s Sustainability Committee, comprising senior leaders from our investment, risk, and corporate functions, is tasked to implement the sustainability framework, and monitor and respond to environmental, social and governance (ESG) issues. The Committee regularly engages the Group Executive Committee and Board Committees on broad trends and emerging issues that may affect our portfolio, as well as the ongoing implementation of GIC’s framework for sustainability – focused on capturing opportunities, protecting our portfolio, and pursuing enterprise excellence and partnerships.
A dedicated Sustainability Office supports the Committee in deepening research into sustainability issues, and in driving their integration into the investment process and across the enterprise.
How we operate sustainably as an organisation is as important as the way we invest. We do this by communicating clear expectations for sustainable behaviour to our business partners and managing our resource use to improve our energy efficiency in our operations across all our offices.
We protect our investments by regularly screening our existing investments for material sustainability risks and by stress-testing our portfolio against a range of climate scenarios and carbon price projections. We conduct additional due diligence for companies and assets exposed to greater sustainability risks and adjust our long-term valuation and risk models accordingly..
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 integrating sustainability into our investment processes, actively engaging our portfolio companies on material sustainability issues, and investing in innovative low-carbon solutions and other sustainability trends.
As a long-term investor, we welcome progress in global sustainability initiatives that help investors and companies make better business decisions that improve long-term value. Sustainability is a field that continues to evolve. All organisations, including GIC, can benefit from learning from one another as new standards are developed. GIC collaborates with fellow asset owners through the following industry platforms:
US-based Divert is an impact technology company on a mission to protect the value of food. Divert is transforming the food value chain by creating innovative solutions to eliminate food waste. The company creates sustainable infrastructure to prevent wasted food, recover edible food, and divert food waste from landfills. GIC’s investment will be used to support Divert’s expansion across the US. Our confidence in this investment is backed by its strong relationships with key national grocers, such as Albertsons and Target, as well as the regulatory and ESG tailwinds driving demand for waste solutions which are both environmentally friendly and cost-effective.
Climeworks is a leading high-quality carbon removal provider, combining decades of expertise in Direct Air Capture (DAC) technology with a holistic approach to carbon removal solutions. Climeworks advises companies on their carbon removal strategies and provides tailored portfolios of nature-based and engineered approaches, offering end-to-end services to help achieve net-zero goals. The company runs the world's first two DAC plants in Iceland, demonstrating its core commitment to high-quality carbon removal that is backed by over 15 years of pioneering research, development, and deployment. By advancing the most reliable solutions in the market, Climeworks accelerates the global transition to net zero, unlocking economic value for businesses, governments, and society.
GIC's funding will support the scaling of Climeworks' plants to multi-million-ton capacity as the carbon removal market grows and matures. Climeworks will also use the capital to further build out the team with top-tier talent.
ACEN is the listed energy platform of the Ayala Group, one of the largest conglomerates in the Philippines, and a long-time partner of GIC. ACEN has ~4,000 MW of attributable capacity in the Philippines, Vietnam, Indonesia, India, and Australia. The company has expanded its renewable pipeline beyond 2025 to 18 GW, developed organically or with partners. As of July 2022, the company’s renewable share of capacity is at 87%, among the highest in the region.
ACEN’s aspiration is to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 20 GW in renewables capacity by 2030. In 2021, ACEN announced its commitment to achieve net-zero greenhouse gas emissions by 2050. This will involve the early retirement of its remaining coal plants by 2040 and transitioning the company’s generation portfolio to 100% renewable energy by 2025.
GIC’s investment in ACEN will be used to fund the platform’s renewable energy project development and potential acquisitions, enabling it to accelerate and expand its green impact. Our confidence in this investment is backed by its diverse portfolio of renewable energy assets and strong track record of profitable growth. We believe the company is well-positioned to capture the shift from thermal energy to clean, sustainable energy in the region.
Back to top
