- Do you measure the carbon footprint of your infrastructure portfolio? And do you measure your footprint at the GP level?
Yes. We have [oil and gas] upstream investments in North America (United States/Canada) and Europe (Russia/North Sea).
We have invested in global energy/infrastructure funds of which the GPs are mostly located in the United States. These funds have O&G- and power generation-related investments globally.
- Do you have any fossil-fuelled energy generation/transmission assets in your infrastructure portfolio? If so, what percentage of your portfolio do they represent?
Yes. We have less than 3% assets (not including the fund investments) … related to fossil fuelled energy generation in the infrastructure portfolio.
- Do you have any energy-transition assets in your portfolio? If so, what percentage of your portfolio do they comprise?
Yes. The assets [are] comprised of 4% (excluding fund investments)
- Have you implemented or do you have plans to implement, emissions-reduction targets across your infrastructure portfolio?
- Could you provide details on those targets, including how much CO2 you are offsetting and how you will go about doing it?
- Do you seek to also influence the supply chain your portfolio companies work with?
- Will you be relying on data gathering and/or technology to ‘green’ your portfolio?
- Are you reducing emissions at the GP level, by, for example, rationing travel or offsetting it?
We don’t have specific targets over the whole portfolio. We do global investments and make sure to deploy [capital] according to international as well as local countries’ CO2 emission standards. We have noticed [the] latest trend of energy transition as well as the emphasis on the ESG criteria. In recent years, we started to diversify our energy related investments from traditional [oil and gas] upstream to midstream and renewable energy. We actively look for investment opportunities in renewable/clean energy industry together with GPs as well as industry partners. However, we also realize that some of such opportunities especially green field projects can hardly meet our return targets due to higher capex and immature technology. We are trying to find a balance between return and go green.
- How resilient is your infrastructure portfolio to climate change?
- Do you have any assets that are particularly exposed to climate change?
- Does your portfolio require climate-adaptation measures, and, if so, what is the projected capex spend?
- Have you already spent capex making your portfolio more climate-resilient? And if so, how much?
- Also, will this spend impact the project returns of your infrastructure portfolio?
- Have you ever divested an asset due to climate-change considerations?
As mentioned, we only have less than 3% of assets [that are] related to fossil fuelled power generation. In our infrastructure portfolio, [the majority of the investments is in transportation, telecom, data infrastructure, energy infrastructure… etc, which are more ESG neutral and have less negative impacts from climate change.
- Could climate change adversely impact the valuation of your infrastructure portfolio?
Same as question 5.
- Have you adopted a strategy for future assets you will be investing in? For example, investing less in fossil fuel-based assets and more or only in clean energy?
Yes, we do. We actively look for investment opportunities in renewable/clean energy industry together with GPs as well as industry partners. We plan to increase the weights of renewable energy in the portfolio [while keeping] our current position in fossil fuel-based assets unchanged.