Caledonia Investments plc
Climate Impact & Sustainability Data (2021, 2022, 2024)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:73 tonnes CO2e
Scope 1 Emissions:19 tonnes CO2e
Scope 2 Emissions:47 tonnes CO2e
Scope 3 Emissions:7 tonnes CO2e
Total Energy Consumption:47 KWh
Carbon Intensity:8 Tonnes CO2e per FTE
ESG Focus Areas
- Governance
- Environmental
- Social
Environmental Achievements
- Dramatic reduction in carbon emissions due to cessation of international travel during Covid-19. Lower electrical consumption in refurbished Buckingham Gate property.
Social Achievements
- Established The Caledonia Fund to assist employees of investee companies negatively impacted by Covid-19, providing around £260,000. Established The Caledonia Investments Charitable Foundation. Partnered with #10,000BlackInterns, offering paid work experience.
Governance Achievements
- Commitment to increasing board diversity. External review of board effectiveness.
Climate Goals & Targets
Environmental Challenges
- Covid-19 pandemic impact on investee companies, particularly those in the consumer leisure sector. Sale of Buzz Bingo for a nominal sum. Strengthening of Sterling against the US dollar negatively impacting returns.
Mitigation Strategies
- Established The Caledonia Fund to support employees of impacted businesses. Provided additional capital to support investee companies. Continued monitoring of the Covid-19 pandemic and its economic impact. Maintained a strong balance sheet.
Supply Chain Management
Responsible Procurement
- Clear payment practices ensuring fair and prompt payment for goods and services.
Climate-Related Risks & Opportunities
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:160 tCO2e/year (location based); 115 tCO2e/year (market based)
Scope 1 Emissions:21 tCO2e/year
Scope 2 Emissions:45 tCO2e/year (location based); 47 tCO2e/year (market based)
Scope 3 Emissions:94 tCO2e/year
Renewable Energy Share:100% of electricity use
Total Energy Consumption:733 KWh/year
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Environmental, Social, and Governance (ESG)
- Climate Change
Environmental Achievements
- Electricity supply sourced from 100% renewable energy
Social Achievements
- Partnership with #10000BlackInterns internship program
- Charitable giving through The Caledonia Investments Charitable Foundation (£230,000)
Governance Achievements
- Succession planning with the appointment of Mathew Masters as CEO
- Appointment of new independent non-executive directors: Lynn Fordham and Anne Farlow
Climate Goals & Targets
Long-term Goals:
- Investee businesses to target net zero emissions by 2050
- Caledonia to achieve net zero emissions by 2030 (Scope 1 and 2)
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Not disclosed
Environmental Challenges
- Russia's invasion of Ukraine increasing geopolitical risks and exacerbating inflationary pressures
- Higher levels of volatility in markets adapting to interest rate increases
- Supply chain constraints
- Integrating ESG and climate change issues into investment decision-making
Mitigation Strategies
- Well-diversified portfolio
- High levels of cash provide a cushion to market reversals
- Active approach to portfolio management
- Developing ESG policy and processes
- Training for board directors and investment professionals on ESG and climate change
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Clear payment practices, over 94% of invoices paid within 30 days
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Regulation, changing customer behaviour, reputational risks
Opportunities
- Sustainable business opportunities, technology for lower emission energy solutions
Reporting Standards
Frameworks Used: TCFD
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2024
Environmental Metrics
Total Carbon Emissions:390 tCO2e/year (market-based)
Scope 1 Emissions:14 tCO2e/year
Scope 2 Emissions:14 tCO2e/year (market-based)
Scope 3 Emissions:375 tCO2e/year (business travel) + 1 tCO2e/year (other)
Renewable Energy Share:100% (electricity)
Total Energy Consumption:286 kwh/year
Water Consumption:Not disclosed
Waste Generated:2 tons/year
Carbon Intensity:60 tonnes CO2e/$m invested (2024)
ESG Focus Areas
- Climate change
- Diversity & Inclusion
- Governance
- Employee well-being
- Community Investment
Environmental Achievements
- Switched to 100% renewable electricity in 2021, significantly reducing market-based Scope 2 carbon emissions.
- Cooke Optics installed solar panels, reducing grid energy usage and achieving 20% renewable energy share.
Social Achievements
- 98% of employees would recommend Caledonia as a great place to work (based on a 94% response rate employee survey).
- Successful internship program with 100% of respondents rating it excellent.
- Established the Caledonia Investments Charitable Foundation, supporting various charities.
Governance Achievements
- Implemented a formal internship program.
- Strengthened the team across multiple functions, promoting internal talent and hiring new expertise.
- Established a Responsible Investment/Responsible Corporate Working Group.
Climate Goals & Targets
Long-term Goals:
- Investee companies to target net zero emissions (Scope 1 and 2, market-based) by 2050.
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Achieve net zero Scope 1 and 2 emissions (market-based) by 2030.
Environmental Challenges
- Foreign exchange headwinds impacting returns.
- Slowdown in distributions from Asia funds due to market volatility.
- Sentiment towards investment companies investing in private assets weighing on discounts.
- Hollywood writers' and actors' strikes impacting Cooke Optics.
Mitigation Strategies
- Disciplined capital allocation across investment pools.
- Review of investor relations and communications program.
- Working with Cooke Optics to enhance value creation plan and support investment in the team.
- Enhanced stress-testing and capital allocation modeling.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Clear payment practices ensuring fair and prompt payment.
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Regulatory changes
- Consumer preference shifts
- Pressure to reduce carbon emissions
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: TCFD
Certifications: Null
Third-party Assurance: BDO LLP
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed