Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Governance Achievements

• Commissioned an external evaluation of its Board performance in 2018.
• Appointed Richard Horlick and Bronwyn Curtis to the Board.

Climate Goals & Targets

Environmental Challenges

• Global political and economic uncertainties.
• Increased volatility in the investment environment.
• The alarming trajectory of the COVID-19 pandemic.

Mitigation Strategies

• Regular dialogue with the Manager, reviewing trading strategies and risk exposures.
• Active programme for public communication and investor relations.
• Resuming share buy-backs if shares trade at wide discounts to NAV.
• Monitoring potential impact of Brexit.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Responsible Investment

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNPRI

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Governance Achievements

• Commissioned an external evaluation of its performance in 2018, confirming the Board works in a collegiate, harmonious and effective manner.
• Commissioned Lintstock to carry out a further review in 2021 (in progress).

Climate Goals & Targets

Environmental Challenges

• Geopolitical Risk: The war in Ukraine and subsequent ratcheting up of tensions between Russia and the West has led to widespread sanctions against Russia and great uncertainty as to how events will unfold and the consequences of those events and the risks associated with them.
• Brexit Risk: The Company may nevertheless be exposed to risks arising from the UK’s departure from the European Union and subsequent agreement reached between the UK and the European Union at the end of the Brexit transition period, which did not cover financial services.
• Coronavirus Risk: Despite the reported increased impact of Coronavirus (COVID-19) on businesses, the Board continues to believe that this is not a major business risk for the Company.

Mitigation Strategies

• The Board and the Manager are monitoring events closely in order to mitigate any collateral impact on the Company and its performance (Geopolitical Risk).
• In conjunction with the Manager, the Board will monitor the potential impact on the Company and on the Company’s performance (Brexit Risk).
• The Company uses a number of service providers for its day to day operations. These providers have established and regularly tested Business Resiliency Policies in place, to cover various possible scenarios whereby staff cannot turn up for work at the designated office and conduct business as usual (such as work from home facilities and/or different regions covering work for other regions) (Coronavirus Risk).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Principles for Responsible Investment

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Modern Slavery

Governance Achievements

• Maintained regular dialogue with the Manager to assure itself of the quality of the investment team and supporting systems, operations and infrastructure.
• Pursued an active programme of public communication and investor relations, holding investor webinars and meetings with key shareholders.
• Remained in compliance with all current regulations and recommendations relating to board composition.

Climate Goals & Targets

Environmental Challenges

• Slightly negative investment returns in the six-month period to 30 June 2024.
• Discounts in share prices to Net Asset Value (NAV) remaining at levels the Board and shareholders would like to see narrow further.
• Greater pressure on the closed-ended fund sector due to concentrated shareholder registers, concentrated wealth management market, discounts to NAV, and regulatory pressure on fee disclosure.
• Geopolitical concerns including divisions in the US, tensions in the Middle East and Europe, and the war in Ukraine.
• Announcement of an “unexpected black hole” in UK public finances.
• Failure of a key service provider to maintain business continuity and resiliency.

Mitigation Strategies

• Continued share buyback programme.
• Liaison with major shareholders.
• Increased annual buyback allowance for Sterling shares.
• Working with Kepler and JP Morgan to expand the investor base.
• Regular dialogue with the Manager.
• Active programme of public communication and investor relations.
• Assessment of measures in place by key service providers to maintain business continuity.

Supply Chain Management

Climate-Related Risks & Opportunities