GIC Says Portfolio Risks Growing as Climate Action Falls Short

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessGIC Says Portfolio Risks Growing as Climate Action Falls ShortSingapore’s sovereign wealth fund GIC Pte. is preparing its investment portfolio for more natural disasters and weather stresses, as the pace of emissions reduction is too slow to limit the effects of global warming.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Singapore’s sovereign wealth fund GIC Pte. is preparing its investment portfolio for more natural disasters and weather stresses, as the pace of emissions reduction is too slow to limit the effects of global warming.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountIt’s now “widely accepted” that the world will miss the Paris Agreement objectives of limiting the rise in global temperatures to 1.5C, or well below 2C, from pre-industrial levels, the fund said in its latest annual report.“Given recent adjustments and reversals on policies related to decarbonization, the global transition towards a net-zero economy will not happen fast enough to avoid significant physical changes in the climate and environment,” GIC said in the report. “This creates real, near-term physical risks for the companies and assets we invest in. We seek to understand and underwrite these appropriately.”Many businesses and investors globally have eased or removed emissions-reduction targets in the past year. US President Donald Trump’s anti-environment policies, artificial intelligence-triggered electricity demands and the Iran war have also reignited demand for fossil fuels. JBS NV, the world’s largest meatpacker, this month stepped back from a 2040 net zero goal.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againAs the world gets hotter, losses from natural disasters are growing, crossing more than $100 billion annually in recent years, according to Swiss Re AG. That’s forcing large investors such as GIC to try to quantify the impact on their portfolios, and engage with companies on setting aside more cash for resilient infrastructure and insurance.GIC says it conducts climate scenario analysis, is creating internal metrics and using third‑party data to track acute risks such as wildfires and hurricanes, along with increases in temperatures and sea levels. It also analyzes earnings at risk from carbon taxes and other regulations.The fund said it sees potential in products and services that can help businesses and communities mitigate climate damage. Its research estimated that investment opportunities across public and private markets could increase to $9 trillion by 2050 from $2 trillion last year, according to the report. The fund is also investing in solar and wind energy as well as “providers of green solutions” in industrial and manufacturing sectors. While AI has increased power demand, it also has potential to assist in emissions reduction, and already is enabling better energy management, improving grid operations and providing predictive maintenance for renewable assets, GIC said. “AI is also accelerating breakthroughs in materials science, carbon capture technologies, and climate modeling that could lower the cost and complexity of decarbonization,” the report said.—With assistance from David Ramli.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.