Climate Change Data

Environmental Metrics

ESG Focus Areas

• climate change
• diversity
• plastics waste
• opioid crisis

Environmental Achievements

• AES reduced carbon intensity by 30% since 2005; Schlumberger committed to Science Based Targets initiative to reduce GHG emissions; Amazon announced Climate Pledge to reach Paris Agreement goals 10 years early.
• Nestlé developed a sustainably sourced recyclable paper wrapper for Yes Bar; Ball Corporation introduced recyclable aluminum cups in stadiums.

Social Achievements

• Amazon implemented a $15/hour minimum wage; UnitedHealth launched oral health programs to reduce opioid access; Etsy supports gender-blind parental leave.
• Bank of America made strides in addressing gender diversity and pay gap; Agios Pharmaceuticals shows above-average gender representation.

Governance Achievements

• ClearBridge engaged with companies to improve board governance and disclosures; Engaged with companies on issues such as carbon emissions disclosure, setting emissions reduction goals, increasing use of clean energy, improving supply chain sustainability, and proactively addressing sustainability issues.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19; ESG ratings dispersion; greenwashing; lack of transparency in company reporting; challenges in developing meaningful climate scenarios; lack of ESG resources in smaller companies; contamination in recycling systems; lack of broadband coverage in rural areas.
• Limited usefulness of portfolio carbon footprints as a measure of climate performance; challenges in comparing companies' disclosures on stranded asset risk; lack of uniform disclosure of assets' positions on the cost curve.

Mitigation Strategies

• ClearBridge published expectations for company managements regarding COVID-19 response; ClearBridge uses proprietary ESG ratings and direct engagement with companies; ClearBridge advocates for better disclosure and practices related to climate-related risks; ClearBridge engages with companies to improve ESG performance through direct engagement and proxy voting; ClearBridge works with companies to develop better ESG disclosure standards; ClearBridge uses MSCI Carbon Portfolio Analytics to assess exposure to companies with fossil fuel reserves; ClearBridge engages with companies on climate change issues; ClearBridge works with portfolio companies on disclosures and best practices in publishing sustainability reports; ClearBridge supports initiatives with other investors and NGOs; ClearBridge helps smaller companies develop ESG practices and improve governance.

Supply Chain Management

Responsible Procurement

• Sustainable raw material sourcing; monitoring of supply chain labor management (human rights, health and safety)

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather
• flooding

Transition Risks

• regulatory changes
• market shifts
• stranded assets

Opportunities

• development of energy-efficient products
• investment in renewable energy
• demand-side management

Reporting Standards

Frameworks Used: TCFD, UN Sustainable Development Goals (SDGs)

UN Sustainable Development Goals

• SDG 3
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 15

ClearBridge maps its ESG framework to the SDGs to demonstrate the impact of its efforts.

Sustainable Products & Innovation

• plant-based protein products
• recyclable aluminum containers
• precision agriculture technologies

Awards & Recognition

• Pensions & Investments Magazine named ClearBridge one of the Best Places to Work in Money Management