Climate Change Data

ECP Asset Management Pty Ltd

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Community Investment
  • Responsible Investment

Environmental Achievements

  • Achieved lower carbon emissions for investment portfolios than benchmarks.
  • Costa Group invested in a solar farm, avoiding 900t of scope 2 greenhouse gas emissions.
  • James Hardie Industries saw a 17% reduction of Scope 1 and Scope 2 GHG intensity.

Social Achievements

  • Updated paternity and diversity policies.
  • Hosted the second ECP Annual Ambrose, raising nearly $40k for charity.
  • Implemented market-leading gender-neutral commencement salary.

Governance Achievements

  • Became a supporter of the Task Force on Climate-related Financial Disclosures (TCFD).
  • Published inaugural annual TCFD Report.
  • Board ratified Inclusion and Diversity Policy.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Assess and engage channel partners and key suppliers on their operations.
Short-term Goals:
  • Achieve carbon neutrality for own operations by 2024-25.

Environmental Challenges

  • Climate change risks and opportunities for portfolio companies.
  • Maintaining a social license to operate in a changing environment.
  • Lack of diversity representation in the investment industry.
Mitigation Strategies
  • Integrated ESG factors into investment analysis and decision-making.
  • Active ownership and engagement with portfolio companies on ESG issues.
  • Set diversity targets for board and investment team.
  • Exploring partnerships and training programs to improve industry diversity.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • James Hardie sources 83% of materials within 100 miles.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Increasing climate-related regulation
Opportunities
  • Development of low-emission products and services
  • Access to new markets and incentives

Reporting Standards

Frameworks Used: Principles of Responsible Investment (PRI), Task Force on Climate-related Financial Disclosures (TCFD)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 4 (Quality Education)
  • SDG 8 (Decent Work and Economic Growth)
  • SDG 9 (Industry, Innovation and Infrastructure)
  • SDG 11 (Sustainable Cities and Communities)
  • SDG 12 (Responsible Consumption and Production)
  • SDG 13 (Climate Action)
  • SDG 16 (Peace, Justice and Strong Institutions)
  • SDG 17 (Partnerships for the Goals)

ECP's portfolio contributes to these SDGs through various initiatives and investments.

Sustainable Products & Innovation

  • Nitro Software's PDF productivity suite (enables workflow digitization and reduces printing).

Awards & Recognition

  • Not disclosed

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Responsible Investment
  • Climate Change
  • Modern Slavery
  • Workplace Health & Safety
  • Governance
  • Diversity & Inclusion

Environmental Achievements

  • Consistently lower carbon emissions over the past five years, both in total carbon emissions and weighted average carbon intensity.
  • 30% of investments have publicly stated Net Zero targets.

Social Achievements

  • 80% of investments have a publicly available modern slavery statement.
  • 71% periodically assess modern slavery within their supply chain.
  • Every surveyed company had policies in place relating to mental health, sexual harassment and personal safety, as well as diversity, inclusion, and anti-discrimination policies.
  • Every company reported actively monitoring staff turnover and satisfaction.
  • Raised A$45k for Taronga Conservation Society of Australia.

Governance Achievements

  • 97% of surveyed companies had a majority of independent directors on their boards.
  • More than 80% had an independent chairperson.
  • 94% of survey respondents reported that they consider ESG issues when setting long-term corporate strategies.
  • 88% have a designated ESG officer, or nominated person responsible for ESG matters.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero across ECP's firm operations and investment portfolios by 2050.
Medium-term Goals:
  • Achieve carbon intensity 50% less than the benchmark across all portfolios by 2030.
  • 75% of investment companies with publicly available net-zero targets by 2028.
  • 100% of investment companies with publicly available net-zero targets by 2030.
Short-term Goals:
  • Achieve carbon intensity 25% less than the benchmark across all portfolios by 2025.
  • 50% of investment companies with publicly available net-zero targets by 2025.
  • Achieve carbon neutrality for ECP's operations by 2025.

Environmental Challenges

  • Supply chain disruptions impacting around a third of the portfolio.
  • Freight issues and labor shortages affecting a significant portion of portfolio companies.
  • Inflationary pressures impacting over 40% of portfolio companies.
  • Climate change risks (physical and transitional) impacting a significant portion of the portfolio.
Mitigation Strategies
  • Portfolio companies demonstrated resilience by continuing to grow revenues.
  • Three-quarters of the portfolio benefited from a recurring revenue base.
  • Companies implemented strategies to combat inflation, such as raising prices, reducing costs, and implementing loyalty programs.
  • Engagement with portfolio companies to understand and address ESG-related issues.
  • Development of a Roadmap to Net Zero.

Supply Chain Management

Responsible Procurement
  • Engagement with portfolio companies on modern slavery practices in their supply chains.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Natural disasters
  • Sea-level rise
  • Floods
  • Droughts
  • Bushfires
  • Extreme temperatures
Transition Risks
  • Policy changes
  • Legal changes
  • Technological developments
  • Market changes
  • Reputation issues
  • Climate-related litigation
Opportunities
  • Resource efficiency
  • Energy source diversification
  • Development of low-emission products and services
  • Access to new markets
  • Public sector incentives
  • Increased resilience

Reporting Standards

Frameworks Used: TCFD, PRI, UN Sustainable Development Goals, United Nations Global Compact

UN Sustainable Development Goals

  • Goal 1
  • Goal 2
  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 11
  • Goal 12
  • Goal 16
  • Goal 17

ECP's portfolio contributes towards 8 of the 17 UN SDGs, with the biggest contributions towards SDG 16 (Peace Justice and Strong Institutions), SDG 17 (Partnerships for the Goals), SDG 11 and 7.

Awards & Recognition

  • Responsible Investment Leader for 2022 (RIAA)

Reporting Period: 2023

Environmental Metrics

Carbon Intensity:Target carbon intensity reductions relative to benchmark (25% by 2025, 50% by 2030, 75% by 2040).

ESG Focus Areas

  • Responsible Investment
  • Climate Change
  • Diversity & Inclusion
  • Cybersecurity
  • Supply Chain
  • Governance

Environmental Achievements

  • Achieved Climate Active certification for business operations.
  • Portfolio carbon intensity significantly lower than benchmark (Growth Companies: -32.1%, Emerging Companies: -96.3%).
  • Reduced operational emissions (Scope 1+2) from 26.6 to 8.9 tCO2e.

Social Achievements

  • Supported various community initiatives (Art Gallery of NSW, Bond University, A Sound Life, Taronga Conservation Society).
  • Launched ECP Industry Immersion Program in partnership with UNSW.
  • Partnered with F3 for a six-week online work experience placement for university students.
  • Improved diversity representation across the firm.

Governance Achievements

  • Designated as a Responsible Investment Leader by RIAA for the second consecutive year.
  • Achieved RIAA certification for firm and investment products.
  • Strengthened internal cybersecurity protocols and conducted regular IT audits.

Climate Goals & Targets

Long-term Goals:
  • Target carbon intensity 75% less than the index across all portfolios by 2040.
  • Achieve Net Zero for firm operations and across all portfolios by 2050.
  • 100% of investment companies with publicly available net-zero targets by 2030.
Medium-term Goals:
  • Target carbon intensity 50% less than the index across all portfolios by 2030.
  • 75% of investment companies with publicly available net-zero targets by 2028.
  • Achieve Net Zero for business operations by 2030.
Short-term Goals:
  • Achieve Net Zero for business operations by 2025.
  • Target carbon intensity 25% less than the index across all portfolios by 2025.
  • 50% of investment companies with publicly available net-zero targets by 2025.

Environmental Challenges

  • Inflationary pressures impacting half of portfolio companies.
  • Supply chain disruptions (though reduced from 2022).
  • Labour shortages (though reduced from 2022).
  • Climate change related physical and transition risks.
Mitigation Strategies
  • Portfolio companies implemented strategic pricing adjustments.
  • Portfolio companies focused on operational efficiency and effective resource utilization.
  • Engagement with portfolio companies to address ESG-related issues.
  • Development of a Roadmap to Net Zero.
  • Implementation of robust cybersecurity policies and incident response strategies.

Supply Chain Management

Supplier Audits: Over 90% of portfolio companies embraced responsible sourcing policies or supplier codes of conduct.

Responsible Procurement
  • Responsible sourcing policies
  • Supplier codes of conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Sea-level rise
  • Floods
  • Droughts
  • Bushfires
  • Extreme temperatures
Transition Risks
  • Policy changes
  • Technological advancements
  • Market shifts
  • Reputational damage
  • Reduced demand for products/services
  • Decreased capital availability
Opportunities
  • Resource efficiency
  • Energy source diversification
  • Development of low-emission products/services
  • Access to new markets
  • Public sector incentives
  • Increased resilience

Reporting Standards

Frameworks Used: PRI, TCFD, UN Global Compact

Certifications: Climate Active, RIAA Responsible Investment Certification

UN Sustainable Development Goals

  • Goal 1 (No Poverty)
  • Goal 2 (Zero Hunger)
  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 11 (Sustainable Cities and Communities)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 16 (Peace, Justice and Strong Institutions)
  • Goal 17 (Partnerships for the Goals)

Portfolio contributes to SDGs through investments in companies with strong ESG credentials and sustainable business models.

Awards & Recognition

  • RIAA Responsible Investment Leader (2023)