Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Human Capital Management
• Energy Transition
• Diversity and Inclusion
• Supply Chain Management
• Corporate Governance

Environmental Achievements

• Teck Resources: Investing over C$900 million to increase water treatment capacity at Elk Valley operations to mitigate environmental impact.
• Autodesk: 43% reduction in CO2 emissions across the value chain in 2020 (Base year: FY2009). 100% of offices and data centers use renewable electricity.
• Nike: Targets to reduce absolute Scope 1 and 2 GHG emissions by 65% and absolute Scope 3 GHG emissions by 30% by 2030 from a 2015 base year.
• Novo Nordisk: Achieved 100% renewable electricity across its global production network in 2020 and is on track to have zero net emissions of CO2 from its operations and transport by 2030.
• TELUS: Reduced energy intensity by 32% from 2019 levels in 2021. Approximately 65% of total electricity used in 2021 was from renewable or low-emitting sources.

Social Achievements

• Teck Resources: 4,075 employees (6% of the workforce) identified as Indigenous in 2020; spent C$192 million in procurement with Indigenous businesses; launched Indigenous inclusion and diversity programming.
• Autodesk: 37% of 2020 hires were female and 36% from a diverse base; 50% female representation on the Board.
• Nike: Targets 50% representation of women in global corporate positions and 45% in leadership positions by 2025; 30% representation of US racial and ethnic minorities at the Director level and above by 2025.
• Novo Nordisk: Increased percentage of women in senior leadership positions from 35% to 39% (as of Q4 2022).
• TELUS: Surpassed diversity targets two years early, with its Board including six out of 13 independent directors who are women (46%), and three directors who represent a visible minority or are Indigenous.

Governance Achievements

• Enhanced proxy voting guidelines and procedures to incorporate best practices in areas like reporting transparency and communication of voting intention.
• Enhanced engagement policy to better define engagement processes and objectives.
• Development and implementation of several oversight and monitoring tools to assist investment teams in identifying and evaluating evolving ESG risks.

Climate Goals & Targets

Environmental Challenges

• Balancing energy transition with energy security, reliability, and affordability.
• Increased scrutiny and anti-ESG sentiment.
• Lack of common understanding around ESG.
• Implementation of new ESG standards.
• Managing climate change risks and opportunities across various sectors.
• Understanding and addressing biodiversity risks and opportunities.
• Addressing human capital management challenges amidst cost-of-living crises and inequities.

Mitigation Strategies

• Seeking solutions and clearer communication of objectives.
• Establishing and adhering to global sustainability standards.
• Addressing the lack of knowledge and confusion surrounding ESG.
• Developing and implementing oversight and monitoring tools.
• Enhancing proxy voting guidelines and engagement policies.
• Integrating ESG considerations into all investment processes and stewardship activities.
• Engaging with companies to understand and address ESG risks and opportunities.

Supply Chain Management

Responsible Procurement

• Nike conducts due diligence on all new suppliers; all suppliers are required to sign a Code of Conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (wildfires, heatwaves, droughts, flooding)

Transition Risks

• Regulatory changes, market shifts related to the global transition to a lower-carbon economy

Opportunities

• Development of energy-efficient products and services; investment in energy transition projects.

Reporting Standards

Frameworks Used: SASB

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through renewable energy use, emissions reduction targets, and support for sustainable business practices.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Transition
• Human Rights
• Decarbonization
• Diversity & Inclusion
• Corporate Governance

Environmental Achievements

• Cameco: Excellent management and disclosure of tailings strategy; reduced water usage through diversion, segregation, and inflow reduction; consistent groundwater reviews with no serious contamination issues.
• Cintas: 7.5% reduction in emissions intensity in 2021; 7.9% reduction in energy consumption intensity in 2021; 30% less energy use than peers; committed to net-zero GHG emissions by 2050 and returning 90% of withdrawn water.
• Illumina: Achieved 100% renewable electricity and carbon neutrality in direct operations; 90% less packaging weight and waste, 50% less plastic usage in NovaSeq X series.
• Allied Properties: 13% decrease in energy use intensity, 11% reduction in GHG intensity, 31% reduction in water use intensity, 2% increase in waste diverted from landfills (2019-2022).

Social Achievements

• Cameco: 372 Northern Saskatchewan residents employed (~1% of total population, ~50% of regional staff); online training available to all Northern Saskatchewan residents; scholarships offered.
• Illumina: Maintained zero net pay gap for four consecutive years; 9% increase in minority representation in executive leadership in the US; 52% minority representation among US employees; supported STEM education programs reaching over 1.2 million learners.
• TSMC: Ranks in the top 25% for total compensation amongst industry peers; 8,836 beneficiaries of health-promotion programs for contractors; investments in education and community programs.
• Allied Properties: Make Room for the Arts program offering discounted spaces for artists; various initiatives surrounding accessibility and health.

Governance Achievements

• Updated Responsible Investing Policy; finalized engagement and controversy risk management procedures; published overview on Approach to Stewardship; enhanced climate-related investment analysis; climate training for all investment teams; active participation in industry initiatives and regulatory consultations.

Climate Goals & Targets

Environmental Challenges

• Rising interest rates impacting sustainability spending; geopolitical tensions and volatile energy prices; increased visibility of green policy costs; ESG reporting fatigue and regulatory uncertainty; ESG backlash.

Mitigation Strategies

• Pragmatic approach to RI; focus on strong returns; ESG integration in investment processes and stewardship activities; clear communication with clients and industry bodies; adaptation to evolving regulatory and client demands; deepened understanding of climate change and other sustainability topics.

Supply Chain Management

Responsible Procurement

• Code of Conduct for suppliers (Yum China)

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather impacting real estate properties (Allied Properties)

Transition Risks

• Evolving ESG regulations impacting real estate investment and management (Allied Properties)

Opportunities

• Increased demand for nuclear fuel (Cameco); growth in outsourcing and cross-selling of safety products (Cintas); growing market for gene sequencing equipment (Illumina); supplying RNG (Waste Connections).

Reporting Standards

Frameworks Used: SASB

Sustainable Products & Innovation

• NovaSeq X series (Illumina); RNG from landfill gas (Waste Connections)

Awards & Recognition

• Illumina: Fast Company’s 2023 World Changing Ideas Awards