1. Progress Report 2022
    1. Welcome from GIG Global Head
    2. Year in review
      1. Impact
      2. Activity
      3. WHS and ESG
      4. Partnership
      5. Funds under management
    3. Green impact governance
      1. Overview
      2. Letter from the GPC
      3. Green ratings report
      4. Green impact statements
      5. Independent assurance report
    4. Keeping in touch

Progress Report 2022

08 December 2022

Green ratings report 

GIG balance sheet 

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), with the exception of rooftop solar projects as the Green Analytics team does not routinely rate individual rooftop solar assets. The graphic below indicates the number of projects assigned to each rating. The reporting period for our green ratings is April 2021 to March 2022.

Reduce greenhouse gas emissions

  • Most of the projects in which we invested in 2021/22 are forecast to result in reduced greenhouse gas emissions with one project rated AAA, the highest rating.
  • Two projects are not forecast to directly result in reduced greenhouse gas emissions. These are both BESS projects.  
  • Projects achieving higher green ratings for this Green Purpose are located in countries with higher grid emissions (e.g. Poland and India) and are technologies with lower embedded project emissions (e.g. onshore wind).​
  • The metric reported for this Green Purpose is lifetime greenhouse gas emissions avoided (kt CO2e).

Advance natural resource efficiency

  • Most of the 2021/22 projects are forecast to advance resource use efficiency.
  • Projects achieving higher ratings have greater displacement of natural resource consumption.​
  • The two BESS projects have achieved a C rating as they do not directly result in advancing natural resource efficiency. 
  • Metrics reported for this Green Purpose are:​ 
    • renewable energy generation (GWh)​
    • energy consumption avoided (GWh)​
    • materials recovered for recycling (kt).

Protect or enhance the natural environment

  • All of the 2021/22 projects are anticipated to have no significant or minor adverse effects on the local natural environment, following environmental mitigation measures.​
  • The metric reported for this Green Purpose is landfill avoided (kt).

Protect or enhance biodiversity

  • One project in 2021/22 is expected to contribute directly to biodiversity protection or enhancement with a B rating. This is for a solar PV project in the UK where re-wilding and habitat corridors have been introduced as part of the project to achieve biodiversity net gain. This is partly due to biodiversity net gain principles being adopted in the UK.  
  • Adverse effects on biodiversity have been fully mitigated where possible, with residual effects deemed acceptable by planning and permitting authorities for each project.
  • Most projects are anticipated to result in minor or no significant adverse effects on biodiversity, following mitigation and compensatory measures, but some will have moderate adverse effects.​
  • Where there is uncertainty over impacts, we conservatively assume more severe impacts until mitigation measures are implemented.

Promotion of environmental sustainability

  • While the other Green Purposes encompass direct environmental sustainability improvements, this Green Purpose addresses indirect effects of projects to facilitate, stimulate or promote environmentally beneficial action.​​
  • All of our projects are expected to make a positive contribution to indirect promotion of environmental sustainability.
  • Green impact metrics associated with this green purpose are energy storage capacity in MW and MWh (or equivalent)
  • Two projects, the BESS projects, are forecast to achieve the highest rating of AAA. BESS projects score highly against this green purpose due to their strong enabling effect. They support the deployment of further renewable energy generation by stabilising the grid and therefore accelerate the transition to net zero by maximising clean energy capacity and grid stability in markets globally.

Funds

Our ratings approach for fund investments is consistent with the approach used for balance sheet investments. During the green impact reporting year, one project was closed for MGREF2; therefore, to protect the confidentiality of individual investments, the green ratings for the funds are presented descriptively.

Reduce greenhouse gas emissions

  • The project acquired for MGREF2 in 2021/22 is forecast to result in reduced greenhouse gas emissions.​ 
  • The metric reported for this Green Purpose is lifetime greenhouse gas emissions avoided (kt CO2e).

Advance natural resource efficiency

  • The project acquired for MGREF2 in 2021/22 is forecast to advance resource use efficiency.
  • The metric reported for this Green Purpose is renewable energy generation (GWh)​.

Protect or enhance the natural environment

  • The project acquired MGREF2 in 2021/22 is not expected to contribute directly to natural environment protection or enhancement.​
  • The project is anticipated to have no significant or minor adverse effects on the local natural environment.​

Protect or enhance biodiversity

  • The project acquired MGREF2 in 2021/22 is not expected to contribute directly to biodiversity protection or enhancement.​
  • The project is anticipated to have no significant or minor adverse effects on biodiversity.​ 

Promotion of environmental sustainability

  • The project acquired for MGREF2 in 2021/22 is expected to make a positive contribution to indirect promotion of environmental sustainability.
Back
Next