Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Offset 100% of Group’s direct 2019 CO2 equivalent greenhouse gas emissions through supporting UK woodland creation.
• Main office has a BREEAM ‘Excellent’ rating and an innovative rainwater harvesting system.

Social Achievements

• Three-year strategic charity partnership with Generating Genius, supporting talented young people from disadvantaged backgrounds in STEM.
• Significant progress in support of the “30% Leadership” campaign to improve gender diversity on the Board of Directors.

Governance Achievements

• Established an ESG Working Group.
• Implemented a cyber security working group and additional security systems to reduce cyber incident risk.
• Formed a ‘30% Club Working Group’ to improve gender diversity.

Climate Goals & Targets

Environmental Challenges

• Business travel, particularly overseas flights, is the single biggest contributor to direct emissions.
• Staff turnover in 2019 was unusually high (37.5%) due to the return of technology transfer operations to Imperial College and structural changes.

Mitigation Strategies

• Employees are encouraged to use video conferencing and public transport.
• Waste prevention initiatives and recycling facilities in offices.
• Carbon offsetting program.
• Addressing high staff turnover through structural changes and improved communication.

Supply Chain Management

Responsible Procurement

• Working with SMEs and local suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, Global Reporting Initiative (GRI), CDP, SASB, TCFD

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 9
• SDG 11
• SDG 12
• SDG 13

Portfolio companies contribute to various SDGs through their technologies and services.

Awards & Recognition

• Sunday Times Volvo Visionary (C-Capture)
• Business Green’s ‘Breakthrough of the Year’ (C-Capture)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Investment
• Governance
• Employee Engagement

Environmental Achievements

• Offset 100% of Group’s direct 2020 CO2 equivalent greenhouse gas emissions through UK woodland creation.

Social Achievements

• Improved eNPS from -2 to +23 during 2020.
• Reduction in unplanned employee turnover in 2020 (only 4 out of 17 leavers were unplanned).
• Increased female representation on the Board to 33% and on the Executive Committee to 36%.
• Introduced two ‘Employee Executive’ roles to increase diversity of thought in decision-making.

Governance Achievements

• Amended investment process to incorporate ESG considerations, including adding excluded sectors to investment agreements and documenting ESG assessments.
• Adopted a Group Ethical Investment Framework (EIF) and ESG Policy.
• Cyber Essentials certification awarded.
• GDPR audit rated as “satisfactory”.

Climate Goals & Targets

Environmental Challenges

• Insufficient data to accurately report on some ESG metrics.
• Need to further integrate ESG into overall strategy and across business units.
• Reduction in scope 3 emissions (transport) remains a focus.

Mitigation Strategies

• Improving data collection and reporting.
• Engaging internal stakeholders on ESG through training.
• Considering formal environmental targets aligned to net zero at operational and portfolio levels.
• Engaging portfolio companies on key ESG factors.
• Exploring ways to track, measure, and disclose the positive impact of the portfolio.

Supply Chain Management

Responsible Procurement

• Diligence to ensure third-party suppliers maintain good security standards.

Climate-Related Risks & Opportunities

Opportunities

• Investment in clean technologies

Reporting Standards

Frameworks Used: SASB, TCFD, UN Global Compact

Certifications: Cyber Essentials

UN Sustainable Development Goals

• 3 (Good Health and Well-being)
• 7 (Affordable and Clean Energy)
• 8 (Decent Work and Economic Growth)
• 9 (Industry, Innovation and Infrastructure)
• 11 (Sustainable Cities and Communities)
• 13 (Climate Action)

IP Group invests in businesses developing solutions in areas such as communicable diseases, non-communicable diseases, clean energy, and digital transformation.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community Engagement
• Responsible Investment

Environmental Achievements

• Offset 100% of Group’s direct 2021 CO2 equivalent greenhouse gas emissions through UK woodland creation.
• Reduced GHG emissions to 83tCO2e (2020: 138.4tCO2e)

Social Achievements

• Supported 20 charities through the “Giving 20 at 20” campaign.
• New partnership with IntoUniversity.
• 43% female representation on IP Group’s Board.
• 38% female representation in Senior Leadership.
• Launched the ID Project, IP Group’s diversity and inclusion initiative.
• Appointed two employee executives to the Executive Committee.

Governance Achievements

• Provided training to all staff in anti-money laundering, cyber security, GDPR, and anti-bribery and corruption.
• Established a Global Cyber Forum and working groups.
• Awarded Cyber Essentials certification.

Climate Goals & Targets

Environmental Challenges

• Implementing a new ESG framework across an existing portfolio and multiple geographies.
• Climate change risks and opportunities for portfolio companies.
• Cyber security threats.

Mitigation Strategies

• Developed a policy toolkit for portfolio companies.
• Commissioned a climate risk and opportunity analysis of a sample portfolio.
• Implemented a mandatory IT & Cyber Security training program, quarterly phishing training, and annual penetration testing.
• Established a working group to improve response and recovery from ransomware attacks.

Supply Chain Management

Responsible Procurement

• Working with local suppliers where possible.

Climate-Related Risks & Opportunities

Physical Risks

• Impacts of a changing climate on product deployment

Transition Risks

• Legal risk (IP Group plc)
• Technology risk (portfolio)

Opportunities

• Significant opportunities for cleantech portfolio companies in the transition to a lower carbon economy.

Reporting Standards

Frameworks Used: TCFD, SASB, UN Global Compact, UNPRI

Certifications: Cyber Essentials

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation and Infrastructure)

Portfolio companies contribute to these goals through their products and services.

Environmental Metrics

ESG Focus Areas

• Life Sciences
• Deeptech
• Cleantech

Environmental Achievements

• 87% reduction in operational carbon emissions since 2019
• Headquarters in a BREEAM “outstanding” building, generating zero waste to landfill

Social Achievements

• Increased employee engagement (eNPS score from +28 to +50)
• Launched Inclusion and Diversity Masterplan
• Supported IntoUniversity and 10,000 Black Interns programs

Governance Achievements

• Established ESG and Ethics Committees
• Implemented Ethical Investment Framework
• Achieved Cyber Essentials certification

Climate Goals & Targets

Environmental Challenges

• Attracting and retaining high-quality employees in a tight labor market
• Managing Scope 3 emissions from business travel

Mitigation Strategies

• Increased inflationary pay settlement and one-off cost-of-living supplement for employees
• Reviewing Scope 3 categories to determine material and measurable factors for future reporting

Supply Chain Management

Responsible Procurement

• Ethical Investment Framework

Climate-Related Risks & Opportunities

Opportunities

• Investments in carbon capture, nuclear fusion, and hydrogen technology

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: BREEAM “outstanding”, Cyber Essentials

UN Sustainable Development Goals

• 3
• 5
• 7
• 8
• 9
• 13

Investments in life sciences, cleantech, and deeptech align with these SDGs

Awards & Recognition

• 6th place in Honordex Inclusive PE & VC Index 2023

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Using certified carbon offsetting to mitigate the entire carbon footprint of its business operations
• Implementing comprehensive environmental management initiatives in its offices (increased energy efficiency, waste prevention, sustainable water consumption)

Social Achievements

• Ensuring a high-quality working environment for employees and opportunities for further training and professional development in sustainability and ESG-related topics
• Encouraging diversity, inclusion, and equal opportunities
• Creating diversity in its supply chain by working with SMEs
• Working with local suppliers
• Signatory of the Prompt Payment Code
• Zero tolerance approach to modern slavery

Governance Achievements

• Implementing and enforcing effective policies and procedures to reflect its zero-tolerance approach to bribery and corruption
• Measuring its performance and promoting continual improvement through setting annual objectives and targets and undertaking internal audits
• Maintaining its ESG Committee

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Creating diversity in its supply chain by working with SMEs

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 9
• SDG 11
• SDG 13

The Group and its portfolio companies have the potential to act on the major global challenges identified in the UN’s 17 Sustainable Development Goals