Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Human capital
• Protection of the environment
• Respect for the communities in which we operate
• Innovation and energy efficiency

Environmental Achievements

• Achieved 57.51% portfolio alignment with EU Taxonomy (up from 48.5% in 2021)
• Avoided 3,919 kT of CO2 emissions from renewable energy portfolio in 2022
• Secured a large volume of carbon credits to cover the next 2-3 years of corporate and financed emissions.

Social Achievements

• Supported 7,871 jobs through portfolio investments (primarily in long-term care)
• Over 2.5 million households benefit from renewable and transition energy portfolio
• Exceeded volunteering target of 200 hours, achieving over 400 hours of volunteering across offices.

Governance Achievements

• Formalized ESG Committee charter
• Integrated ESG-related targets into the incentive remuneration process (10% of bonus structure)
• Successfully achieved all ESG-related performance targets for the year.

Climate Goals & Targets

Environmental Challenges

• Data limitations and lack of consistent standard for measuring Scope 3 emissions
• Difficulties in collecting real data for some emission sources requiring estimations
• Shortages in the availability of high-quality carbon offset and removal projects.

Mitigation Strategies

• Developed internal processes for ESG data collection and reporting
• Engaged with operating partners to improve data quality and quantity
• Secured a large volume of VERRA and BC Carbon Registry credits to cover future emissions.

Supply Chain Management

Responsible Procurement

• Responsible Contractor Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Policy and legal changes
• Carbon-constraining measures

Opportunities

• Decline in solar and wind capital costs
• Increased precipitation for hydro assets

Reporting Standards

Frameworks Used: TCFD, UN PRI, GRESB, SFDR, EU Taxonomy, PCAF

Third-party Assurance: Montreal-based firm active in Environmental and Health and Safety Management for 25 years

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 7
• SDG 8
• SDG 9
• SDG 13

Axium's investments contribute to these SDGs through renewable energy, social infrastructure, and job creation.

Sustainable Products & Innovation

• Battery storage facilities
• Large-scale solar projects

Awards & Recognition

• GRESB Management Score of 30/30
• AgeCare Accreditation Canada
• Optima Living Business Excellence Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Social
• Environmental

Environmental Achievements

• Achieved approval from the Net Zero Asset Managers Initiative (NZAM) on intermediate emission reduction targets for the portfolio.
• Renewable energy portfolio reached a total capacity of 8,777 MW in North America, avoiding 7,253 kT of CO2 emissions.

Social Achievements

• Successfully achieved a 90% coverage rate for SFDR indicators.
• Supported approximately 9,995 jobs through portfolio investments.
• Exceeded the corporate ESG bonus objective of 400 volunteer hours, completing 546 hours.

Governance Achievements

• Published the first Principal Adverse Impact (PAI) statement in accordance with the EU's Sustainable Finance Disclosure Regulation (SFDR).
• ESG represents 20% of the corporate performance bonus, corresponding to 10% of the total bonus structure for all employees.
• Implemented a new policy to minimize environmental impacts while maintaining high levels of security and efficiency in technology refresh.

Climate Goals & Targets

Environmental Challenges

• Data collection at the asset level.
• Increasing compliance and public disclosure obligations.
• Managing the end-of-life of solar panels, batteries, and used wind turbines.
• Climate-related physical and transition risks.
• Difficulties in collecting real data on certain emission sources.

Mitigation Strategies

• Engaged with operating partners on data requirements, implemented quality assurance processes, and explored software solutions to enhance reporting capacity.
• Developed tools to help the investment team and asset managers identify, measure, and mitigate risks.
• Established a working group to assess the current landscape, regional programs, and opportunities associated with recycling and reuse of replaced components.
• Conducted a second climate resilience assessment to evaluate potential climate-related risks and opportunities.
• Implemented estimations for HFC and SF6 emissions where real data was unavailable.

Supply Chain Management

Responsible Procurement

• Responsible Contractor Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, heat waves)
• Rising sea levels
• Glacier retreat

Transition Risks

• Changes in GHG regulations
• Increased energy efficiency standards
• Fossil fuel price volatility

Opportunities

• Increased demand for renewable energy
• Technological advancements in renewable energy

Reporting Standards

Frameworks Used: TCFD, SFDR, GRESB, PCAF, ISSB

Third-party Assurance: Third-party assurance provided by a Montreal-based firm.

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Axium's four pillars of responsible investment contribute to these SDGs.

Awards & Recognition

• Morongo Transmission won the Governmental Impact Deal of the Year award from NAFOA.