Climate Change Data

Environmental Metrics

ESG Focus Areas

• Socially responsible operations
• Community
• Environment
• Governance

Environmental Achievements

• Initiatives to focus on the environmental impact of leased and owned office space, including energy efficiency, recycling, and water conservation. Aims to source energy from renewable sources.

Social Achievements

• Diversity and wellbeing initiatives with greater focus on the recruitment process, including neutral screening for hires and promotions. Signed up to the Women in Finance Charter, maintaining 35% female representation at Group Board and Senior Management level. Named Macmillan Cancer Support as Group charity of the year. 'A day to make a difference' employee volunteering program.
• Two employees nominated for Women in Financial Advice Awards 2021

Governance Achievements

• Established an ESG Committee in 2020 responsible for planning, implementation, and progression of ESG policies. Governing Board comprises 3 Tatton Executives and 3 independent Non-Executive Directors. Established an Audit and Risk Committee to assess and improve risk management and governance.

Climate Goals & Targets

Environmental Challenges

• Limited data on Environmental and Social valuation aspects in unconstrained investment strategies (Managed, Core, Tracker, Income). Backward-looking data on non-ESG funds can misrepresent funds if underlying companies and exposures change regularly.
• Regulatory changes in Europe (Article 7, 8, or 9) requiring managers to increase exposures or change strategy.

Mitigation Strategies

• Monitoring the significant shift by fund managers to incorporate ESG valuation metrics. Expecting external data providers to increase ESG metrics and data on funds over time. Monitoring regulatory changes in Europe and their reporting.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate change
• Employee wellbeing and engagement
• Equal opportunity and equal pay
• Charitable giving
• Corporate governance
• ESG reporting

Environmental Achievements

• Significant reduction in UK-based travel due to the COVID-19 pandemic and increased use of video conferencing; this trend is expected to continue.

Social Achievements

• Introduced access for all employees to a range of health support services, including remote GP access, mental health support and life, money and wellbeing support.
• Growth in Tatton’s Ethical Portfolios, reaching £441 million AUM (5% of overall AUM), a 141% increase year-on-year.
• Group-wide review of ESG policies initiated.

Governance Achievements

• Group-wide review of ESG policies initiated.
• Establishment of an ESG sub-committee led by Chris Poil.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting travel and marketing income.
• Market uncertainty affecting client investment decisions.
• Increased regulatory pressures.
• Competition in the MPS market.

Mitigation Strategies

• Swift transition to remote working and online engagement.
• Consistent client communication and virtual events.
• Strong financial position and liquidity.
• Broad service offering and competitive pricing.
• Strong client relationships and brand reputation.
• Dedicated compliance teams and systems.

Supply Chain Management

Responsible Procurement

• Zero tolerance stance on slavery and human trafficking

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Tatton Ethical Portfolios

Awards & Recognition

• Paradigm Mortgages’ Best Mortgage Club Award (two consecutive years)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Continued to ensure our IT and recycling policies are appropriate
• Continued to make use of the “cycle to work” scheme
• Preparing for our environmental impact reporting next year, as determined by the Task Force on Climate-Related Financial Disclosures (“TCFD”)

Social Achievements

• Employee engagement through staff days
• Diversity and inclusion reporting
• Training and development
• Employee “winter support” payment
• Rolled out a leadership development programme to all people leaders to foster a high performance culture
• All staff are able to use a paid volunteering day
• Matched funding for charitable fundraising

Governance Achievements

• Continued adoption of the Quoted Companies Alliance Corporate Governance Code (the “QCA Code”)
• ESG Working Group
• Regular internal training on cyber and data security

Climate Goals & Targets

Environmental Challenges

• Increasing concerns around “greenwashing”

Mitigation Strategies

• Commitment to transparency, accountability, and independent verification in ESG reporting and labelling
• Use of both positive and negative screening in ethical portfolio construction

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD