Work of the GPC and the GIB’s Green Mission
The Green Purposes Company (GPC) holds a special share to safeguard the green mission of the Green Investment Bank (GIB). This safeguard was created by Parliament to come into effect when the GIB was transferred to private ownership.
To explain the work that GPC carries out, the way the GIB defines its green mission needs to be considered first. This is stated in the GIB’s articles of association as GIB’s green objective and five green purposes:
GIB’s Green Objective
All investments made by GIB must contribute to one or more of the five following Green Purposes:
1.The reduction of greenhouse gases;
2.The advancement of efficiency in the use of natural resources;
3.The protection or enhancement of the natural environment;
4.The protection or enhancement of biodiversity; or
5.The promotion of environmental sustainability.
In addition, GIB's portfolio investments, taken together, must contribute to a reduction in greenhouse gas emissions.
The GPC holds a special share in the GIB which makes GPC the final arbiter in any proposed changes to the five green purposes, as stated above and in the GIB’s articles of association. The objective of GPC’s role is to provide confidence that under private ownership GIB will continue to successfully invest in the same or an enhanced way, when compared with the past under government ownership.