08 December 2022
The IEA declared 2022 to be the year of the first global energy security crisis. Compounding inflationary pressures driven by the COVID 19 pandemic, the invasion of Ukraine is radically reshaping the energy landscape, forcing governments around the world to grapple with rising costs and growing energy security concerns.
Our response to these challenges will have long-term consequences. As COP27 made clear, it's critical that as we tackle the immediacy of the energy crisis, we do not inadvertently exacerbate the climate crisis.
We must avoid the temptations of short-termism and remain resolute in our knowledge that the only long-term solution is the acceleration of investment into the energy transition.
Renewables are now not only the lowest-cost form of new capacity in most markets, they’re also often the most readily deployable. By harnessing domestic renewable sources of power, countries can quickly and cheaply enhance energy security, reduce exposure to volatile energy markets, and stimulate economic growth without exhausting our carbon budget.
This is increasingly recognised across the private sector. Forward-thinking companies and investors are actively engaged in reshaping business models and strategies to produce sustainable, secure and equitable outcomes with renewed determination and purpose. This remarkable surge in appetite for energy transition solutions provides further momentum to our collective ambition.
At GIG, we're very proud of the breadth and impact of our efforts across established and new technologies and across multiple geographies. This is how we double down on our mission to accelerate the transition to net zero.
Five years after the acquisition of the UK Government's Green Investment Bank and having transformed GIG into a leading global green energy investor and developer, in April we joined Macquarie Asset Management (MAM). As part of the world’s largest infrastructure asset manager, we’re now able to mobilise the capital of some of the world’s largest institutional investors behind the transition, providing an even greater scale of decarbonisation solutions for clients, portfolio companies, communities and the environment.
Within MAM, we continue to pursue our mission through two key strategies:
And we continue to deliver these strategies by pushing into new markets, such as Brazil and India, and by creating and investing into specialist businesses – businesses like Corio Generation, Fleete and HyCC. By taking forward significant development portfolios, these businesses deliver volume at a truly transformational scale, offering investors the opportunity to participate in value creation within the energy transition as that value is being created.
These companies also enable us to offer a unique suite of decarbonisation products to our corporate clients, who are increasingly looking for holistic solutions to help them meet their sustainability commitments.
You can read more about our strategies and portfolio companies in the Activity section of this report.
The growth of environmental, social and governance (ESG) and ‘impact’ investing has resulted in a legitimate curiosity on behalf of investors and shareholders about how green investments really are. Since our inception, we’ve been committed to reporting on the impact of our investments with the utmost scientific rigour and transparency. Our Green Objective is uniquely hardwired into the way we do business – so when we say an investment is ‘green’ you can have confidence in exactly what that means. You can read about our governance procedures and the green impact of our investments in the Green Impact Governance section of this report.
Finally, thank you, as ever, to all our clients, partners and stakeholders who travel with us on this journey. None of this would be possible without your support and I look forward to continuing our work together.
While the climate and energy crises may loom large, we know they can be met head-on by accelerating the transition to net zero. As we embark on our new phase of growth as part of Macquarie Asset Management, we look forward with determination and ambition, buoyed by the knowledge that we’re on a trajectory to deliver more impact than ever before.
Global Head, Green Investment Group