Clean energy initiative backed
Insurance businesses find ways to grow and sustain their funds.
FOR the Government Service Insurance System (GSIS), such endeavor is a priority because the agency has to ensure it can provide its over 2.5 million members and pensioners their benefits when they fall due.
Thus, the state pension fund needs to make investments that can yield high dividends. This can allow GSIS to further strengthen its actuarial life and provide opportunities to further diversify its funds.
Recently, the GSIS partnered with ACEN for an energy project. It has invested in ACEN’s Energy Transition Mechanism (ETM) initiative for the South Luzon Thermal Energy Corporation (SLTEC) amounting to Php2.2 billion.
The move is in line with the call of the government to support infrastructure programs and initiatives to promote clean energy.
The partnership was sealed after GSIS and Ayala-led ACEN signed a memorandum of agreement on November 7, 2022 at the ACEN headquarters in Makati City.
“We will fully support investments that prioritize optimal environmental, social, and governance (ESG) factors or outcomes consistent with our corporate social responsibility,” GSIS President and General Manager Wick Veloso said.
GSIS’s investment will, in effect, provide bridge financing to support ACEN’s transition to reach Net Zero greenhouse gas emissions by 2050, transition its generation portfolio to 100% renewable energy by 2025, and divest away from coal plants by 2040.
On the other hand, Veloso said the venture will help improve GSIS programs and services that will ultimately redound to greater members’ experience.
Meanwhile, ACEN was grateful for GSIS valuable support. “We thank GSIS for providing us the funding that would help us achieve our commitment to achieve Net Zero greenhouse gas emissions by 2050,” ACEN President and CEO Eric Francia, said.
As the listed energy platform of the Ayala Group, ACEN aspires to be the largest listed platform in Southeast Asia, with a goal reaching 20GW of renewables capacity by 2030.
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