GIC looks to integrate climate change into all investment processes

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AS the world starts to recognise the impact of climate change, investors can no longer afford to dismiss risks associated with abrupt policy changes that may potentially hurt portfolio returns. Read more at The Business Times.

To be sure, fossil fuel company valuations are highly sensitive to this risk. But there are many other companies and industries that will be impacted and whose business models or existing assets are also at risk of being stranded, said Mr Litterman.

The sovereign wealth fund is also ensuring that bottom-up active investment teams are integrating climate change considerations into their investment processes. Analysts tap environmental metrics to identify risks and conduct further due diligence and engagement with companies. The focus for GIC will also be on"green thematic opportunities" including renewable energy, green buildings, sustainable food and agriculture, electric mobility and other emerging technologies that will facilitate a decarbonisation of the global economy.

 

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