Climate Change Data

Environmental Metrics

ESG Focus Areas

• climate change
• governance
• sustainability

Governance Achievements

• The Board reviewed its composition during the year, with regard to the depth and breadth of experience. The Board reviewed its succession planning during the year and engaged an external search consultancy, Spencer Stuart, to recruit an additional non-executive Director to maintain the broad range of experience that is particularly valuable when supporting and challenging the Managers.
• The Board encourages all service providers to the Company to consider matters of diversity and inclusion and report on progress to the Board annually

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic created enormous social, economic and business disruption.
• Restrictions on holding physical General Meetings.

Mitigation Strategies

• Baillie Gifford made full use of the digital tools at its disposal to provide a full service that progressed uninterrupted.
• The Managers continued to engage with portfolio companies, as well as exploring new investment opportunities.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: AIC

Environmental Metrics

ESG Focus Areas

• Climate change
• Governance
• Sustainability

Environmental Achievements

• Carbon intensity of Scottish Mortgage is 94.5% less than the index (based on 68.0% of the equity portfolio reporting on carbon emissions).

Social Achievements

• Not disclosed

Governance Achievements

• Appointment of Mark FitzPatrick as Non-Executive Director and Chair of the Audit Committee.
• Increased total dividend by 5% to 3.59 pence per share.

Climate Goals & Targets

Environmental Challenges

• Market weakness due to macroeconomic concerns, geopolitics, and the ongoing impact of Covid-19.
• China's regulatory crackdowns on technology and education sectors.
• Heightened market volatility due to macroeconomic and geopolitical concerns, including the Russia-Ukraine war.
• Supply chain disruptions.

Mitigation Strategies

• Managers remained calm and focused on long-term investments.
• Utilized market weakness and fresh borrowings to add to higher conviction holdings.
• Managers conducted research trips to gain insights and build relationships with management teams.
• Board regularly reviews and monitors the Company’s objective and investment policy and strategy, the investment portfolio and its performance, the level of discount/premium to net asset value at which the shares trade and movements in the share register.
• Board monitors the Managers’ response to the current and anticipated impact of climate change on its investment strategy.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Climate-related regulatory and policy environment will be turbulent.

Opportunities

• Deployment of capital in companies that can deliver returns and have a meaningful impact in tackling the climate crisis.

Reporting Standards

Frameworks Used: AIC SORP

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Governance

Environmental Achievements

• 18 companies within the Scottish Mortgage portfolio are currently involved in tackling the climate crisis. An external provider was engaged to map the carbon footprint of the portfolio. This analysis estimates that the carbon intensity of Scottish Mortgage is 95.1% less than the index albeit that is based on only 67.2% of the value of the Company’s equity portfolio which reports on carbon emissions and other carbon related characteristics

Governance Achievements

• The Managers will publish the Company’s first TCFD Report in June 2023.

Climate Goals & Targets

Environmental Challenges

• Market turbulence has impacted all companies
• Heightened macroeconomic and geopolitical concerns
• Performance in recent years has been disappointing

Mitigation Strategies

• The Managers have continued to do what they do best – engaging with portfolio companies through the cycle, as well as selecting and patiently investing in new growth businesses with extraordinary potential from around the world.
• The Board and Managers repaid US$396 million (£322.2 million) of revolving variable-rate bank facilities.
• The Board is acutely aware that such moves can be discomfiting for shareholders. Over the year, we sought to address the excess supply of shares by buying back 36.5 million shares at a total cost of £283.3 million, which represented 2.5% of the share capital in issue at the start of the year.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Huge upside opportunity for companies on the front foot of the transition

Reporting Standards

Frameworks Used: TCFD