Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Data Protection & Ethics
• Community Engagement
• Employee Well-being
• Impact Investing

Environmental Achievements

• 89% of portfolio companies implemented initiatives to reduce GHG emissions or emissions linked to their products/services.
• Portfolio companies avoided 105k tons of CO2 and 57.5m L of fuel through EV charging infrastructure.

Social Achievements

• Average share of women on portfolio company executive committees reached 27%, exceeding the industry average.
• Share of managerial positions held by women in portfolio companies rose from 28% to 36%.
• Significant increase in direct jobs supported by portfolio companies (from 4,007 to 7,758).

Governance Achievements

• 70% of portfolio companies adopted a Code of Ethics within 12 months of investment.
• 85% of portfolio companies formally assigned responsibility for data protection and implemented data security policies.
• No data security breaches recorded among portfolio companies in 2021.

Climate Goals & Targets

Environmental Challenges

• Need for further progress in reducing environmental impact among portfolio companies.
• Need to increase the representation of women in leadership positions within portfolio companies.

Mitigation Strategies

• Launched Cathay ESG & Impact Resource Hub to share best practices and tools with portfolio companies.
• Continued engagement with portfolio companies to encourage implementation of ESG initiatives.
• Set ambitious goals for portfolio company ESG performance (e.g., 100% of relevant portfolio companies to conduct carbon footprint assessment by 2022).

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Rising temperatures
• Floods
• Droughts

Transition Risks

• Increased operating costs
• Reduced demand due to shifts in consumer preferences

Opportunities

• Increased capital availability
• Increased revenue for low-emission products/services

Reporting Standards

Frameworks Used: UN PRI, UN SDGs, IMP (Impact Measurement Project), TCFD, SASB, CDP

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 13 (Climate Action)

Portfolio companies contribute to these SDGs through their business activities.

Sustainable Products & Innovation

• Eco-designed shoes
• EV charging infrastructure

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• Most companies have operational-level environmental initiatives; growing number assessing raw material risks; program initiated in 2023 to help companies assess carbon footprint, set reduction targets, and monitor progress.

Social Achievements

• Every company had an HR manager; most added value through measures like incentive plans and employee-profit sharing; almost all employees (95%) received training; progress in fostering diversity and inclusion.

Governance Achievements

• Companies improved corporate governance by formalising corporate values; most introduced mission statements; strides made by appointing more ESG managers and adopting responsible procurement policies; robust business ethics with essential business documents established; no data security breaches reported.

Climate Goals & Targets

Environmental Challenges

• Opportunity for further growth to enhance environmental efforts, particularly by formalising aspects like environmental policy and biodiversity initiatives; need for more progress in fostering diversity and inclusion, especially in European entities.

Mitigation Strategies

• 2023 program to help companies assess carbon footprint, set reduction targets, and monitor progress; focus on improving D&I in European entities.

Supply Chain Management

Responsible Procurement

• 74% of Innovation II companies have formalised a responsible procurement policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN PRI, Impact Management Project (IMP), TCFD, SASB, CDP

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 9
• SDG 12
• SDG 13

Many portfolio companies actively contribute to goals like Climate Action (SDG 13), Responsible Consumption (SDG 12), Innovation (SDG 9), Economic Growth (SDG 8), and Health and Well-being (SDG 3).