GPIF External Managers Rank Microsoft, Enel Tops for Climate Disclosure

Asset managers for Japan’s Government Pension Investment Fund rated Microsoft Corp. and Italian energy company Enel SpA. best among portfolio companies regarding their reporting of Task Force on Climate Related Financial Disclosures.

The $1.68 trillion pension giant asked the 24 external asset managers overseeing its foreign equity investments to nominate portfolio companies they deem having “excellent TCFD disclosure.” Seventy-nine companies were chosen by at least one asset manager.

Only 15 companies were nominated by at least two external asset managers. Microsoft led all companies, nominated by eight asset managers, one-third of the asset managers polled. Enel was nominated by six asset managers. The only other companies nominated by more than two asset managers were Nestlé S.A. and mining company Rio Tinto Group, each of which garnered three nominations.

The remaining 11 companies nominated by two asset managers were Canadian National Railway, Compagnie de Saint-Gobain S.A., Citigroup Inc., Ford Motor Co., General Motors Co., HSBC Holdings PLC, JPMorganChase & Co., Nextera Energy Inc., Royal Bank of Canada, SSE PLC and Walmart Inc.

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“MSFT is undoubtedly a leader on climate reporting with technical, detailed assessments of MSFT’s risks and opportunities across various climate scenarios,” stated a GPIF report about the survey. the pension fund also praised Microsoft for its “extensive TCFD report,” which “provides great detail on how they intend to address climate related risks and opportunities,” adding that Microsoft also discloses how it intends to manage water-related risks and opportunities.

“It gives special attention to water, outlining the company’s processes for identifying and assessing climate and water-related risks and opportunities, as well as the details of its internal water pricing,” the report stated.

The GPIF praised Microsoft’s TCFD report because it outlines the company’s climate-related governance structure, as well as the responsibilities of individual roles and sub-teams. The report also covers its quantitative analysis of physical climate-related risk exposure of approximately 1,400 global assets, according to the GPIF.

“In our view, the company is one of the most advanced in the market in terms of the scope, ambition and transparency of its climate metrics and targets,” the report stated.

The GPIF also lauded Enel for publicly committing to implementing the TFCD recommendations and for using climate-scenario planning to test its strategic and operational resilience. “The company has conducted a climate-related scenario analysis including quantitative elements and disclosed its results,” the report stated. “The quantitative scenario analysis explicitly includes a 1.5°C scenario, covers the entire company, discloses key assumptions and variables used, and reports on the key risks and opportunities identified.”

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Tags: Canadian National Railway, Citigroup, Enel, Ford, GM, Government Pension Investment Fund, HSBC, Japan, JPMorgan Chase & Co., Microsoft, NextEra Energy, Royal Bank of Canada, Saint Gobain, SSE, Task Force on Climate-Related Financial Disclosures (TCFD), TCFD, Walmart

Bryan Yeo

Singapore’s sovereign wealth fund, the GIC, has promoted its deputy CIO, Bryan Yeo, to group CIO, the fund announced Tuesday. succeeding Jeffrey Jaensubhakij, who will retire and be appointed a GIC adviser.

Yeo, who has been at the GIC since 2003, was appointed CIO of public equities in 2016 and promoted to deputy group CIO in April 2024. He has also held numerous roles at the fund, including head of fixed income in the Americas, head of credit research and strategy, deputy head of equities and head of credit markets.

In addition to Yeo’s promotion, the GIC also announced that Boon Chin Hau will be named CIO for infrastructure, succeeding Ang Eng Seng, who, like Jaensubhakij, is retiring and will be appointed as an adviser to GIC. All appointments are effective April 1.

“I would like to express my gratitude to Jeffrey and Eng Seng, for their commitment to GIC over the decades,” said Lim Chow Kiat, the GIC’s CEO, in a statement. “Jeffrey was a key architect of the GIC total portfolio and an innovator in investment policies.”

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Yeo earned a bachelor of fine arts degree in engineering and a master of science in financial mathematics from the University of Chicago.

“Eng Seng was instrumental in the expansion of private markets across asset classes and geographies, and was a founding leader for the infrastructure group,” Lim said. “We look forward to their continued contributions as GIC Advisors in the days ahead.”

The GIC’s assets are estimated to be about $800 billion. The fund manages the government’s financial assets and is one of the country’s three investment entities, including the Monetary Authority of Singapore and Temasek.