Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• HeidelbergCement India achieved a net water positive position and consistently reduced its carbon footprint.
• Century Pacific Food achieved plastic neutrality in the Philippines and is consistently increasing the share of its production powered by renewable energy sources.

Social Achievements

• HeidelbergCement India enforces a zero-harm policy at its plants by linking the remuneration of its plant managers to their performance on safety parameters.
• Century Pacific Food launched affordable milk products fortified with immunity boosters, as well as a new range of plant-based meat alternative products. Increased focus on employee development through safety, employee engagement and training measures.

Governance Achievements

• The Investment Manager is a signatory to the UK Stewardship Code and has maintained the highest tiering – Tier 1 – awarded by the Financial Reporting Council for the quality of stewardship related activities and disclosures.
• The Investment Manager is also a signatory to the Principles for Responsible Investment, achieving in its most recent assessment 7 A+ ratings and 1 A rating for the 8 areas of assessment, and it is fully compliant with the CFA Institute’s Code of Ethics and Standards of Professional Conduct for asset managers.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting investee companies through reduced demand, turnover, and supply chain breakdowns.
• Share price discount to net asset value.
• Some investee companies cut dividends due to COVID-19, impacting the Company's income.

Mitigation Strategies

• Working with the Investment Manager, Juniper Partners, and other advisors to manage risks.
• Share issuance and buy-back processes to moderate share price discount.
• Maintaining dividend at 11.5p per share despite reduced income, citing capital growth as primary objective.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: AIC SORP

Third-party Assurance: Johnston Carmichael LLP

Sustainable Products & Innovation

• Century Pacific Food's affordable milk products and plant-based meat alternatives.

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• Century Pacific Food achieved plastic neutrality and is increasing renewable energy in production.
• No greenhouse gas emissions to report from its operations

Social Achievements

• Engaged with Century Pacific Food on modern slavery risks in the fisheries industry, leading to recommendations for improvement.
• Investee companies emerged stronger from the Covid-19 pandemic

Governance Achievements

• Investment Manager is a signatory to the UK Stewardship Code and the Principles for Responsible Investment.
• Active engagement with investee companies on a range of ESG issues, including board composition, worker safety, and environmental impact.

Climate Goals & Targets

Environmental Challenges

• Geopolitical events and rising inflation.
• Covid-19 pandemic impact on businesses in Indonesia and the Philippines.
• Oversupply in a key product for Solara Active Pharma.
• Slow improvement in same-store sales growth for Ace Hardware Indonesia.
• Weak growth in overseas business for NHN KCP.
• Movement restrictions in Chinese cities impacting JNBY Design.
• Lower sales of beverage products for Vitasoy International due to movement restrictions in China.

Mitigation Strategies

• Annual strategy reviews and monitoring of investment performance, shareholder views, and market developments.
• Share buy-back and issuance processes to moderate share price discount/premium.
• Engagement with management teams of investee companies.
• Initiatives such as WhatsApp-based shopping and smaller format stores for Ace Hardware Indonesia.
• Paused hiring to control costs for NHN KCP.
• Investments in digital channels for JNBY Design.
• Increased investment in marketing and hiring experienced professionals for Vitasoy International.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Engagement with Century Pacific Food on supply chain issues related to modern slavery risks.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: AIC Code of Corporate Governance, UK Stewardship Code, Principles for Responsible Investment

Certifications: Null

Third-party Assurance: Johnston Carmichael LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Century Pacific Food's affordable milk products and plant-based meat alternatives.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Sustainability

Social Achievements

• Launched an equity incentive scheme covering more than 600 core management and key employees.

Governance Achievements

• Appointed Uma Bhugtiar as a non-executive Director.
• The Board is currently in the process of recruiting a fifth non-executive Director.

Climate Goals & Targets

Environmental Challenges

• Poor economic relationship between the United States and China impacting investment flows and supply chains.
• Increased awareness of ESG challenges and climate change, leading to increased regulatory focus and risk of greenwashing.
• Social and political events impacting global equity markets.

Mitigation Strategies

• Investment in a portfolio of high-quality companies resilient to market downturns.
• Monitoring material physical and transition risks and opportunities as part of the investment process.
• ESG integration into the investment process, focusing on companies with strong management, franchise, and financials.
• Active engagement with investee companies on strategic and sustainability issues.
• Use of third-party research data from organizations such as RepRisk and Sustainalytics.

Supply Chain Management

Responsible Procurement

• Sustainable palm oil sourcing (RSPO certified)
• Sustainable packaging initiatives

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Principles for Responsible Investment, UK Stewardship Code 2020

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Social Achievements

• The Investment Manager engages with investee companies on a range of issues from board composition to the safety of workers and the environmental impact of their operations, and proactively votes on all shareholder resolutions.

Governance Achievements

• Appointment of a Corporate Broker (Investec Bank plc)
• New marketing strategy with increased profile in financial publications and enhanced website content.
• Proposed five for one share split to improve liquidity and marketability of shares.
• Changes to performance fee calculation methodology to fairly remunerate the Investment Manager while offering protection to shareholders.

Climate Goals & Targets

Environmental Challenges

• Increased awareness of ESG and climate change challenges, including the risk of greenwashing.
• Impact of social and political events, particularly the poor economic relationship between the US and China, on global equity markets and supply chains.
• Share price discount to NAV marginally increased to 14.0%.

Mitigation Strategies

• ESG integration into the investment process, focusing on quality companies with strong management, franchise, and financials.
• Investment in a portfolio of high-quality companies resilient to market downturns.
• Active share buyback program to manage the share price discount.
• Monitoring material physical and transition risks and opportunities as part of the investment process.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• The Investment Manager engages with investee companies on ESG issues, including how they treat their suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: AIC Code of Corporate Governance

Third-party Assurance: Johnston Carmichael LLP