Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Social

Environmental Achievements

• Developed a Temperature Alignment Tool to assess issuer alignment with temperature scenarios, incorporating forward- and backward-looking data.

Social Achievements

• Expanded ESG team to 10 dedicated specialists, alongside 120+ credit research analysts and economists conducting ESG analysis.

Governance Achievements

• Established an ESG Policy Committee, supported by an ESG Ratings Sub-Committee and three working groups to improve decision-making and communication.

Climate Goals & Targets

Environmental Challenges

• Increasingly polarized views on ESG investing.
• Data limitations for certain asset classes (high yield, bank loans, emerging markets, securitized products).
• Weaknesses of climate models in assessing climate-related risks and opportunities.

Mitigation Strategies

• Developed proprietary methodologies for assessing ESG-labelled bonds and temperature alignment.
• Expanded data resources to include Clarity AI, ISS, and Climate Bonds Initiative.
• Employs bottom-up analysis at the issuer level for climate risk assessments.
• Actively engages with issuers, banks, trade bodies, and regulators to encourage consistent ESG disclosures.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

• Increased demand for transition-critical metals
• Development of energy-efficient products

Reporting Standards

Frameworks Used: PRI, UK Stewardship Code

Awards & Recognition

• Pensions & Investments Best Place to Work in Money Management (2022)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions by 68% since 2015 (TransAlta Corp.)
• Developed a consolidated Climate Transition Plan with net-zero operations by 2045 target (TransAlta Corp.)

Social Achievements

• Improved occupational health and safety management system certification (Contemporary Amperex Technology Co., Ltd.)
• Improved human rights risk review of affiliated companies (Posco Holdings, Inc.)

Governance Achievements

• Introduced an ESG component to its long-term incentive plan (BAE Systems PLC)
• Integrated ESG metrics in the variable pay system (Cosan)
• Established the ESG Committee under the Board of Directors (S-Oil)

Climate Goals & Targets

Environmental Challenges

• High GHG emissions from oil sands production in Canada
• Dependence on natural gas for Alberta's energy grid
• Moratorium on approving large-scale wind and solar projects in Alberta
• Unmanaged scope 3 emissions for Canadian oil and gas producers

Mitigation Strategies

• Investment in Carbon Capture and Storage (CCS) technologies (Pathways Alliance)
• Diversification into clean energy and sustainable products (e.g., renewable diesel, sustainable aviation fuel, hydrogen production)
• Development of Bitumen Beyond Combustion (BBC) strategy to create high-value materials from bitumen

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Impact on supply chain

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• CCS
• Renewable energy
• Sustainable products
• Hydrogen production
• Bitumen Beyond Combustion (BBC)

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 45001, IATF 16949: 2016

UN Sustainable Development Goals

• SDG 13 (Climate Action)
• SDG 16 (Peace, Justice and Strong Institutions)

Positive Developments mapped against the UN SDGs.

Sustainable Products & Innovation

• Renewable diesel
• Sustainable aviation fuel
• Hydrogen production
• High-value materials from bitumen (BBC)