ARTICLE I THOUGHT LEADERSHIP
Opportunity knocks in the transition to Net Zero
Published 11 November 2024
Head of Investment Stewardship Alexis Cheang has told the Investor Group on Climate Change (IGCC) summit that TCorp is well-placed to negotiate the risks of climate change and capture the opportunities as well.
During the panel discussion, Alexis told attendees that while there was a lot of focus on the downsides of climate change for markets, TCorp had made significant investments into climate opportunities as well.
“Fundamentally, we see climate change as presenting both investment risks and opportunities,” she said.
“A lot has been said about the risks, but we are also very interested in the opportunity side.
“As of 30 June, TCorp had approximately $5.8bn invested in climate opportunities across equities, green bonds and infrastructure. That’s about 5% of our total portfolio.”
The transition to net zero is considered the largest economic shift since the industrial revolution, with COP28 calling for a tripling of global renewable energy investment, Alexis said.
“To achieve this will require a whole-of-economy transformation, unlocking vast investment opportunities, fostering new businesses, and reshaping the international economy,” she added.
Alexis reflected that one of TCorp’s investment beliefs is around stewardship and that understanding and managing ESG risks and opportunities, including climate change, will result in more resilient long-term investment outcomes.
The IGCC panel discussion, titled The Biggest Investment Megatrend in History: The Net Zero, explored how different investors approach the opportunities from the net zero transition and the challenges and successes within the investment supply chain.
“We see some of the most attractive investment opportunities driven by the transition to net zero arising in private markets, particularly infrastructure,” Alexis said.
“Given global commitments to net zero, substantial large scale, patient capital is required to transition high emitting infrastructure sectors including energy, transport and waste management. This means this is also where the opportunities arise.”
Head of Investment Stewardship