We are a conviction-based, forward-leaning, and active responsible investor. We believe integrating sustainability considerations into our investment processes enables us to make better investment decisions, unlock greater value creation and make good business sense.
The mandate of the Responsible Investing function is to support the unlocking of greater value through the integration of sustainability principles and considerations.
At Mubadala, responsible investing considerations are integrated across all stages of the investment process. The Responsible Investing function acts as a center of excellence, supporting our investment professionals in creating and protecting value.
We have developed and institutionalized three proprietary tools that underpin our approach to sustainability integration across the investment lifecycle. The tools are tailored to different asset classes and sustainability considerations, guiding best practice and driving value creation across our portfolio:
Our tools are data-driven, industry-benchmarked, and widely respected by peers, General Partners, and portfolio companies. They ensure that both sustainability and financial factors are considered in the investment decision-making process to maximize value creation opportunities.
Launched in 2022, the Sustainable Returns Model is our foundational responsible investing tool, which assesses the materiality and maturity of 19 environmental, social and governance factors to identify value creation opportunities and manage risk.
The Sustainable Returns Model continues to evolve, supporting our investment committees and asset managers making more comprehensively informed decisions at the right time.
Our new General Partners Model assesses the integration of sustainability by our private equity and venture capital partners across their investment processes. In 2024, after a thorough pilot phase in collaboration with key General Partners, we launched the tool and are using it to support active and ongoing dialogue with our General Partners in support of stronger sustainability integration.
A key element of our partnership-based approach is active feedback from and to our partners.
We have enhanced our approach to carbon accounting and management by leveraging Watershed, an advanced software solution.
We continuously review our climate strategy, which has recently evolved to provide a deeper assessment of business resilience in line with the net-zero transition.
Our team has developed a Climate Integration Framework to improve the climate strategies of our portfolio companies and drive emissions reductions. The Climate Integration Framework includes a full suite of metrics and data, supported through our partnership with Watershed, to guide our team in engaging and supporting our partners in their own transition plans.
Partnership is a core Mubadala value and is central to our approach. In 2024, we strengthened our commitment to the stewardship of our assets. Driven by value creation, we continued our long-term, proactive engagement with our portfolio companies.
Through our stewardship, we have continued to build a clearer understanding of how collaboration on sustainability considerations links to stronger financial outcomes. As our approach has matured, our conviction has grown.
We work with our portfolio companies to deliver tangible, measurable results that benefit our partners, our shareholder, and the communities in which we invest. We have equipped our asset managers with the tools, insights, and capabilities they need to identify and manage the environmental, social, and governance (ESG) issues most material to the assets they oversee. This effort is grounded in our belief that doing this work makes business sense.
We continue to use our Sustainable Returns Model (SRM) to assess the materiality and maturity of sustainability performance and drive consistent data-informed engagement with our portfolio companies and investment teams focusing on the sustainability factors most relevant to long-term value creation.
Our engagement strategy is especially focused on the companies and sectors where opportunities for sustainable growth are greatest, particularly in the UAE. Through our Responsible Investing Network, we now partner with more than 60 UAE-based portfolio companies and government entities to improve sustainability performance and implement real decarbonization plans. These initiatives have proven value-accretive, improving operational performance and strengthening our assets’ market position, while advancing environmental outcomes.
The General Partners’ (GP) Model also continues to support our indirect investments, enabling structured engagement across private equity, public equity, and venture capital. In 2024, we further embedded the GP Model into our processes, reinforcing ESG considerations across a growing number of external managers and co-investors.
In 2024, Mubadala continued to strengthen our role as a convener, bringing together peers, partners, and experts to advance responsible investing through dialogue, data, and shared learning. We continued to engage with our peers to share practical insights from our work and help inform how climate data can be more effectively gathered, assessed, and disclosed across asset classes.
This work reflects a broader commitment: we believe that better tools, processes, and access to consistent, quality data will help investors across the market unlock and preserve long-term value. As a partner-led investor, we support others on their own journeys to sustainable value creation, sharing our experiences and learning from theirs.
Throughout 2024, Mubadala actively participated in and helped advance dialogue at global forums while presenting our Sustainable Returns Model (SRM) to leading asset managers, academic institutions, and peers, inviting feedback.
At New York Climate Week, we convened One Planet Sovereign Wealth Funds (OPSWF) members and contributed to technical conversations on sustainability integration and portfolio decarbonization. At COP29, our responsible investing leadership engaged in high-level sessions to further practical progress.
We also deepened our engagement through networks including the Climate Governance Initiative’s Chapter Zero UAE and our own Responsible Investing Network. These platforms allow us to work alongside board members, investment professionals, and external advisors to exchange insights and strengthen climate-related governance across asset classes.
At the end of last year, at the 7ᵗʰ Annual One Planet Sovereign Wealth Funds CEO Summit, over 140 global financial leaders came together to share strategies for accelerating the transition to a net-zero economy. The summit brought together sovereign wealth funds representing more than US$46 trillion in assets, reaffirming their commitment to integrating climate considerations into long-term investment strategies.
During the summit, we participated in strategic discussions on transition finance, climate data, and real asset decarbonization. As a member of the OPSWF Network, we contributed to the development of the One Planet Climate Disclosure Guidance, first published in 2021, helping drive convergence around climate-related data and disclosures that underpin investment decisions. In 2024, the Guidance was further progressed and operationalized through expanded member engagement and OPSWF workstreams.
In a year marked by growing complexity and opportunity, these efforts helped reinforce Mubadala’s commitment to responsible stewardship.
