Climate Change Data

Oakley Capital Investments Limited

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:4,882 tCO2e/year (Oakley's own emissions)
Scope 1 Emissions:83 tCO2e/year (Oakley's own emissions)
Scope 2 Emissions:172 tCO2e/year (Oakley's own emissions)
Scope 3 Emissions:4,627 tCO2e/year (Oakley's own emissions)

ESG Focus Areas

  • Energy and climate change
  • Equity, diversity and inclusion (EDI)
  • Cybersecurity and data protection

Environmental Achievements

  • 88% of portfolio companies have insights into their carbon footprint and its drivers
  • Alessi is installing solar panels, generating savings of around 205 tonnes of CO2e/year
  • North Sails Apparel is a registered B Corp, using predominantly recycled fibres (96% of synthetic fibres in 2022 were recycled) and organically grown natural fibres (93% of cotton used in 2022 was organic).

Social Achievements

  • 65% of majority-owned portfolio companies measure EDI data using either their own processes or an Oakley-supported programme
  • IU Group provides training to over 100,000 students a year, across over 30 countries
  • WebPros relocated approximately 200 employees from Russia to other countries to retain talent

Governance Achievements

  • 100% of portfolio companies have an ESG Action Plan in place
  • Six majority-owned portfolio companies used Oakley’s cybersecurity programme in 2022
  • Oakley's Fund VI was classified as Article 8 under new EU sustainable finance rules

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • North Sails aims to transition to at least 80% renewable electricity at all sites by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Supply chain disruptions
  • Relatively low climate-related risk across the portfolio, with the highest pockets of ‘medium’ threats concentrated in the transition risk related to supply chains.
Mitigation Strategies
  • Developed alternative sourcing strategies (implied in the report)
  • Supported WebPros in relocating employees to mitigate risks related to operating in Russia
  • Provided portfolio companies with resources and tools on climate, EDI, and cybersecurity

Supply Chain Management

Responsible Procurement
  • Using predominantly recycled and organically grown fibres (North Sails)

Climate-Related Risks & Opportunities

Physical Risks
  • Potential damage to assets from acute weather or chronic changes, such as flooding or drought
Transition Risks
  • Potential risks from the realignment of economic systems, which may impose reputational or regulatory changes or dissolve markets a company currently sells in

Reporting Standards

Frameworks Used: SASB, EU SFDR, ESG Data Convergence Initiative

Certifications: B Corp (Alessi and North Sails Apparel)

Sustainable Products & Innovation

  • North Sails' recycled and organic materials

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Energy and climate change
  • Equity, Diversity & Inclusion
  • Cybersecurity and data protection

Environmental Achievements

  • North Sails launched RENEW sailcloth, constructed from more than 90% sustainable sources.
  • Oakley measured its full scope 1, 2 and 3 carbon footprint for 2022.

Social Achievements

  • IU Group was awarded B Corp certification.
  • Between 2021 and 2023, Oakley's workforce shifted from 30% women to 47%.

Governance Achievements

  • OCI received industry awards for its annual reports, website and factsheet for two consecutive years.
  • Oakley scored 4/5 stars in the latest UNPRI reports, outperforming the PRI median.

Climate Goals & Targets

Environmental Challenges

  • Macro-economic uncertainties, market volatility, and higher interest rates impacting valuations.
  • Geopolitical risks (conflict in Ukraine, Middle East, tensions between China and Taiwan).
  • Increased cost of borrowing impacting M&A activity and fund-level facilities.
Mitigation Strategies
  • Cautious approach to trading outlook and portfolio company valuation multiples.
  • Regular stress testing on cash forecasts and expansion of credit facility.
  • Focus on earnings quality and EBITDA growth, diversification of exposures across Oakley funds.
  • Careful monitoring of portfolio companies' leverage and debt structures, interest rate hedging strategies.

Supply Chain Management

Responsible Procurement
  • North Sails uses Bluesign Certified and International Sustainability and Carbon Certification compliant suppliers for RENEW sailcloth.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNPRI

Certifications: B Corp (IU Group)

Sustainable Products & Innovation

  • RENEW sailcloth (North Sails)

Awards & Recognition

  • Investment Company of the Year 2023 (Investment Week awards)