Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Community
• Responsible Investment
• Environment
• Climate Change

Environmental Achievements

• Established workflows for producing regular portfolio-level emission analytics
• Performed 21 ESG-focused engagements with an environmental focus across 20 separate companies

Social Achievements

• Donated over $1.5 million to over 50 charitable organizations
• Added 34 new team members, increasing total to 122
• Performed 3 ESG-focused engagements with a social focus across 20 separate companies

Governance Achievements

• Successfully completed IPO on the ASX
• Implemented its 2021 Equity Incentive Plan to align employee interests with company performance
• Performed 11 ESG-focused engagements with a governance focus across 20 separate companies

Climate Goals & Targets

Environmental Challenges

• Integrating multiple third-party ESG data sources into processes
• Understanding the material impacts that climate change and decarbonization may have on individual portfolio companies

Mitigation Strategies

• Building carbon risk analytics function to add value to the investment process
• Focusing efforts on improving understanding of material impacts of climate change and decarbonization
• Incorporating company-level assessments from the Transition Pathway Initiative and the CDP into research

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: PRI

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Joined the Sustainability Accounting Standards Board (SASB) Alliance in February 2022 to utilize their materiality framework for identifying financially material ESG issues.
• Conducted 81 ESG engagements with portfolio companies in 2022, compared to 30 in 2021.

Social Achievements

• Created an ESG Committee in 2022 to oversee the development of the firm’s ESG and Stewardship Policy and ensure fulfillment of investment responsibilities.
• GQG Partners Community Empowerment Foundation focuses on Women and Children, Education, and Disaster Relief, funding over 20 non-profit organizations in 2022.

Governance Achievements

• Comprehensively updated its ESG & Stewardship Policy in 2022 to provide a complete overview of how ESG factors are considered in the investment process.
• Improved materiality assessments of ESG factors in the investment process.

Climate Goals & Targets

Environmental Challenges

• Lack of consistent methodology or framework by ESG data and ratings providers, implying subjectivity in ESG risk assessment.
• ESG shortcomings can pose a material risk to a company’s ability to achieve durable earnings over the long term.

Mitigation Strategies

• Utilizing third-party ESG research and ratings to inform the view of the materiality of ESG factors.
• Trialing additional datasets from different data providers (Morningstar Direct and RepRisk) for carbon analytics and controversy monitoring.
• Exploring the feasibility of providing additional sustainability disclosure.

Supply Chain Management

Responsible Procurement

• Engagement with portfolio companies to assess their modern slavery prevention and mitigation efforts.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity

Transition Risks

• Regulatory changes
• Decarbonization policies
• Shifting market demand

Opportunities

• Demand for raw materials needed for the energy transition
• Development of emission mitigation technologies

Reporting Standards

Frameworks Used: UNPRI, SASB