Climate Change Data

Environmental Metrics

ESG Focus Areas

• Livelihood
• Social
• Gender Equality
• Earth
• Integrity
• Climate Change

Environmental Achievements

• 48% of portfolio companies have a sustainability policy
• 36% of portfolio companies have KPIs such as reducing greenhouse gas (GHG) emissions, waste, and resource consumption; and increasing clean energy adoption and employment in the green economy
• GEF Capital Partners portfolio companies recycled 90,000m³ of wastewater and conserved 79,449m³ of water. Their recycling efforts led to the reclamation of 374 tons of waste. Their investments avoided 710,797 tCO2e of greenhouse gas emissions.

Social Achievements

• Nearly half a billion individuals and organizations have benefited
• More than 220,000 jobs have been sustained, of which 39% are women employees
• Over 50,000 new jobs have been created over the year
• 114,000 individuals (50% of the aggregate workforce) benefited from professional training
• Rayco extended loans to over 11,000 individuals, including 2,000 women

Governance Achievements

• 100% of companies are compliant with applicable labour, tax, and environmental regulations
• 74% of companies paid US$453 million in taxes
• 65% of companies hold third-party certifications (e.g., ISO 9001, ISO 27001, ISO 14001)
• 75% of companies have explicit child protection policies
• 57% of companies have policies to prevent sexual and gender-based violence

Climate Goals & Targets

Environmental Challenges

• Need for greater collaboration to scale climate action and measure Scope 3 emissions
• Challenges in collecting and reporting gender-disaggregated data
• Need for clearer statements of whistleblowing policies
• Need for establishing clear goals for addressing climate-related issues
• Lack of GHG emission tracking and reporting in some portfolio companies

Mitigation Strategies

• Developing environmental improvement plans with portfolio companies
• Influencing investees to manage climate-related risks and set emission reduction targets
• Adding climate-related questions to ESG and Impact surveys to inform future collaborations
• Working with One Point Five to perform GHG hotspot analysis
• Encouraging adoption of impact standards and methodologies

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Increased capital costs
• Reduced revenue from decreased production capacity
• Increased operating costs

Transition Risks

• Increased costs of raw materials
• Mandates on and regulation of existing products and services
• Costs to transition to lower emissions technology

Opportunities

• Adoption of more efficient production and distribution processes
• Recycling
• Utilizing lower-emission sources of energy

Reporting Standards

Frameworks Used: IRIS, TCFD, 2X Challenge

Certifications: ISO 9001, ISO 27001, ISO 14001, Food Safety Certificate, ISO 22000

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 5: Gender Equality
• Goal 13: Climate Action

Awards & Recognition

• Investor in Human Capital award (WeNet)

Environmental Metrics

ESG Focus Areas

• Decent Work and Job Creation
• Community Benefits
• Gender Equality
• Climate Action

Environmental Achievements

• Completed TCFD and climate risk materiality assessment.
• Implemented the Joint Impact Model for GHG estimation across our portfolio and established a baseline.
• Supported fund managers on their TCFD and climate disclosure journey through two specialized webinars.

Social Achievements

• Supported over 268,328 jobs, with 40% held by women.
• Created more than 173,000 new jobs since inception.
• 81% of SGGM fund managers met the 2X Criteria.
• 70% of portfolio companies met the 2X Criteria.

Governance Achievements

• 70% of SGGM fund managers are publishing reports.
• All reporting companies (100%) reported complying with applicable labor, tax, and environmental regulations.

Climate Goals & Targets

Environmental Challenges

• Significant physical and transition climate risks impacting portfolio companies in Vietnam, India, and Brazil.
• Slow progress in achieving gender diversity at the highest decision-making levels.
• Significant gap remains at the board level for women's representation.

Mitigation Strategies

• Updated Sarona's Climate Policy to incorporate ISSB disclosures.
• Implementing diverse recruitment practices, addressing unconscious biases in decision-making processes, and setting clear diversity targets.
• Intensify efforts to address gender biases in recruitment and retention, ensure safe and inclusive workplace, and implement mentorship and sponsorship programs to advance women into leadership roles.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Hurricanes and Typhoons
• Heat Stress
• Drought
• Landslides

Transition Risks

• Regulatory changes
• Shifting away from fossil fuels

Reporting Standards

Frameworks Used: IRIS+, UN SDGs, 2X Criteria, TCFD

Certifications: B Corporation

UN Sustainable Development Goals

• SDG 8: Decent Work and Economic Growth

Awards & Recognition

• Verod Capital Partners earned 2X Certification and was recognized as Best in Class.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Impact

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS S1, IFRS S2, TCFD, UN SDGs, 2X Criteria

UN Sustainable Development Goals

• All 17 UN SDGs

Sarona seeks to contribute to the UN SDGs through its investments.