05 October 2021
This rigorous evaluation ensures all GIG investments meet our green objective by contributing positively to at least one of GIG’s Green Purposes. We also confirm the alignment of our portfolio companies and MGREF1 and MGREF2 activities (see Funds under management for details) with our Green Objective and the Green Investment Policy.
In addition to assessing GIG’s investment activities, we continue to deliver our green impact services to clients and partners, often in partnership with our advisory colleagues across Macquarie. This year we have delivered scalable green impact data reporting for a number of investors and fund managers, and our engagements on developing green frameworks for green debt instruments and investment decision-making have evolved to account for the changing landscape of sustainability standards, such as the EU Sustainable Finance Disclosures Regulation, and EU and other taxonomies for sustainable activities.
We maintain the same robust and consistent approach to accounting and disclosure of green impact metrics as applied in previous years, reporting performance in our green impact statements. This year’s reporting also maintains the new disclosures introduced in 2020, where we added reporting of our qualitative contributions to all five Green Purposes – through our Green Ratings – to our existing quantitative green impact statements.
As part of our commitment to maintaining a market-leading approach we commissioned Arup to undertake an independent review of our methods and identify next steps for their development. Whilst the Green Purposes have remained unchanged, following this review and working with the GPC trustees, we developed updated definitions of the five Green Purposes to provide greater clarity. These updated definitions can be found in our Green Investment Principles or Green Investment Policy, both of which can be found on the GIG website.
We’ve also reviewed our methodologies to ensure they remain robust and appropriate for investments in new technologies, such as e-mobility charging, battery storage and hydrogen, as well as readying for investment evaluations in CCUS.
Our green impact reporting is for the period 1 April 2020 to 31 March 2021.
Our ratings approach for the reporting period is consistent and comparable with our first disclosures of these ratings last year, although we are currently in the process of revisiting and updating our approach in light of the findings of the independent benchmarking review undertaken by Arup.
We use our green ratings against all five of our Green Purposes to inform our investment decisions – a project’s contribution is evaluated on a scale of AAA to E, as indicated below. Here we report our total ratings given to investments in the year (at FID or later, in accordance with our Green Impact Reporting Criteria). The graphic below indicates the number of projects assigned to each rating.
All of the 2020/21 projects are forecast to advance resource use efficiency.