GIC joins programme aimed at transitioning Asian electric utilities to net zero emissions

Photo: Reuters

Singapore’s sovereign wealth fund GIC has joined a new investor-led engagement programme aimed at driving a transition to net zero emissions in Asian electric utilities by cutting emissions, strengthening disclosure, and improving governance of climate-related risks.

The programme is backed by 13 institutional investors and stewardship service providers, responsible for $8.8 trillion in assets under management.

The 13 investors and stewardship service providers participating in the first year of the programme include: Amundi, BNP Paribas Asset Management, Cathay Financial Holdings, Eastspring Investments, EOS at Federated Hermes, Fidelity International, GIC, Income Partners Asset Management, J.P. Morgan Asset Management, Maitri Asset Management, Manulife Investment Management, Resona Asset Management Co., Ltd. and Sumitomo Mitsui Trust Asset Management.

Companies that are the focus of the programme in its first year include: China Resources Power Holdings (China), CLP Holdings (Hong Kong), Chubu Electric Power Co. (Japan), Electric Power Development Co. (J-POWER) (Japan), and Tenaga Nasional Berhad (Malaysia).

The new programme is coordinated by the Asia Investor Group on Climate Change (AIGCC) and will complement and run in parallel with the global Climate Action 100+ initiative.

Investors are working through the programme to increase the effectiveness of climate engagement with the focus companies through a common agenda, shared objectives, and collaborative effort. Investors commit to engaging with at least one focus company during each year of the initiative as part of a collaborative group.

Asian utilities are responsible for 23% of the world’s total carbon emissions. The average age of coal-fired power plants in Asia is only 13 years compared with an average life of 40 years globally.

“This new programme will complement the current engagement effort of Climate Action 100+ in Asia and assist investors to increase the effectiveness of their work with Asian utility companies to manage and mitigate climate risk,” said AIGCC executive director Rebecca Mikula-Wright.

“Helping these companies reduce their emissions, while strengthening their disclosure and governance standards, will not only advance the sustainability agenda, but ultimately protect and enhance their long-term value. We support AIGCC’s efforts to bring together stakeholders and like-minded partners to share best practices in mitigating climate risk with each other and lead Asia’s transition towards a low-carbon economy,” said chief investment officer for fixed income & chair, sustainability committee of GIC, Liew Tzu Mi.

AIGCC is an initiative to create awareness and encourage action among Asia’s asset owners and financial institutions about the risks and opportunities associated with climate change and low carbon investing.

Last year, GIC joined the Asia Investor Group on Climate Change (AIGCC) and the Climate Action 100+ initiative in a further boost to regional investor engagement on climate change.

AIGCC has 56 members from 13 countries representing over $15 trillion in assets under management.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.