Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Modern Slavery and Human Trafficking
• Vendor Management

Environmental Achievements

• Reduced GHG emissions by 4.5% between 2018 and 2019, and by 13% over the five-year period ending 2019.
• Reduced the number of AB personal printers globally by 62% between 2017 and 2019.
• Reduced paper usage by multifunction devices in the US by 20% between 2017 and 2019.

Social Achievements

• 31% of 2019 US new hires were ethnically diverse.
• Female SVP promotions as a percentage of total SVP promotions rose to 33% from 27% (2017-2020).
• Female VP promotions as a percentage of all VP promotions rose to 45% from 37% (2017-2020).
• Launched AB Gives Back in 2019, resulting in 7,000 service hours and $8.4 million in charitable impact.

Governance Achievements

• Appointed a Chief Responsibility Officer (CRO) in 2020.
• Added three diverse members to the operating committee in 2020.
• Strengthened corporate statements on climate change, modern slavery, and human trafficking in 2020.
• Implemented a global anti-corruption training module for all employees.

Climate Goals & Targets

Environmental Challenges

• Limited pipeline of female engineering graduates in France.
• Lack of consistent, comprehensive ESG data on sovereign issuers.

Mitigation Strategies

• Implemented a mentoring program for female students at French universities.
• Sponsors a program for young graduates in India that’s 60% female.
• Introduced a new tool in 2019 that evaluates ESG risk at the country level.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Updating vendor management policies to better identify and respond to modern slavery and diversity and inclusion issues.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, natural hazards

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: Null

Certifications: LEED Gold (Shanghai office)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Portfolios with Purpose (Impact, Goal-Based, Sustainable)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Modern Slavery
• Corporate Governance
• Executive Compensation

Environmental Achievements

• Reduced combined Scope 1, 2, and 3 emissions by 47% (primarily due to remote work and energy-efficient buildings)
• Achieved 6,196.5 tCO2e in 2020 emissions
• On track to place 85% of employees in more environmentally friendly buildings by 2025
• New Shanghai office received a Gold LEED rating; Nashville headquarters pursuing Silver LEED; London office awarded BREEAM “outstanding” rating

Social Achievements

• Received a perfect score on the Human Rights Campaign Foundation’s Corporate Equality Index for LGBTQ workplace equality for the sixth straight year
• 39% of 2021 US new hires were ethnically diverse
• Expanded corporate philanthropy efforts in APAC, EMEA, and New York with a budget of over $1.85 million
• Continued support and resources for employee well-being during the pandemic

Governance Achievements

• Appointed Joan Lamm-Tennant as the new chair of the Board of Directors
• Improved board diversity
• ESG engagement campaign targeting issuers on incorporating ESG metrics in executive compensation, adopting climate risk goals and disclosures, and assessing modern slavery risks

Climate Goals & Targets

Environmental Challenges

• Navigating a hybrid work environment and changing political, policy, and regulatory developments
• Addressing climate change risks and opportunities across investments
• Addressing modern slavery risks in supply chains

Mitigation Strategies

• Developed robust ESG integration and engagement practices
• Partnered with Columbia Climate School for climate risk training and research
• Developed a two-dimensional matrix to assess high-risk-to-people issuers
• Engaged with issuers to encourage adoption of best practices on ESG issues

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Coastal flooding
• Temperature extremes
• Major storms

Transition Risks

• Cost of emissions-reduction requirements
• Market shifts

Opportunities

• Green technology investments
• Climate resilience

Reporting Standards

Frameworks Used: TCFD, GRI

Awards & Recognition

• Themis Combatting Modern Slavery Award
• Morningstar Advanced ESG Commitment Level

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity and Inclusion (DEI)
• Modern Slavery
• Just Transition
• Biodiversity

Environmental Achievements

• Relocated London offices to a BREEAM “outstanding” building
• Diverted 139 metric tonnes of used office furniture and electronics from landfill in London
• Planning for minimal waste to landfill during New York office move
• Reduced operational carbon footprint per capita and per square foot below 2019 baseline despite increased total emissions due to resumed business travel

Social Achievements

• Received a score of 100% on the Human Rights Campaign’s Corporate Equality Index for the eighth consecutive year
• Expanded employee benefit offerings to include wellness-oriented activities
• Enhanced employee and management training programs
• Expanded parental leave benefits
• Donated over $5 million through personal gifts and gift-matching funds
• 22% of senior vice presidents were women as of December 2023; female SVP promotions constituted 49% of all SVP promotions in 2023; female VP promotions constituted 51% of all VP promotions in 2023; 37% of 2023 US new hires were ethnically diverse

Governance Achievements

• Strengthened corporate governance practices
• Improved ESG risk and controls framework
• Established new positions: Director of Data and Technology—Responsible Investing and Director of Risk Management—Responsible Investing
• Enhanced disclosures to include discussion of fixed-income business

Climate Goals & Targets

Environmental Challenges

• Heightened scrutiny of responsible investing
• Increasing greenwashing concerns
• Tidal wave of ESG-related regulation
• Tight natural gas supply in Colombia posing a risk to Ecopetrol's operations
• Data security and privacy challenges at Alibaba
• Child labor, deforestation, and poverty issues in West Africa impacting Nestlé's cocoa sourcing
• Inconsistency in climate-related disclosures globally
• Limited access to Gardasil vaccine in low- and middle-income countries
• Challenges in measuring the effectiveness of modern slavery mitigation efforts
• Interconnections between climate change and human rights issues
• Disparity and inconsistency of climate-related disclosures globally

Mitigation Strategies

• Strengthened corporate responsibility practices
• Prioritized proprietary research and delivered innovative solutions for clients
• Focused ESG integration efforts on identifying financially material risks and opportunities
• Ecopetrol eliminated unconventional oil and gas development in Colombia
• Alibaba developed principles to address data privacy issues and implemented mandatory employee training
• Nestlé implemented an income accelerator program to address child labor and deforestation
• Developed proprietary Climate Transition Dashboard to improve climate risk integration
• Merck is expanding Gardasil manufacturing to increase access
• Developed proprietary modern slavery risk assessment matrix and best-practices framework
• Collaborated with Walk Free on research publication on climate change and modern slavery
• Developed Climate Transition Alignment Framework (CTAF) to assess companies’ material climate-related risks and opportunities
• Developed Biodiversity Risk Matrix to help prioritize industries and issuers for research and engagement

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct
• Due Diligence Questionnaires (DDQs) for critical vendors

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Regulatory changes
• Market shifts
• Energy transition

Opportunities

• Development of energy-efficient products and services
• Investment in climate innovators

Reporting Standards

Frameworks Used: PRI, TCFD, SASB, UNGC, US Stewardship Framework for Institutional Investors, UK Stewardship Code, Japan Stewardship Code, ICGN Global Stewardship Principles

Certifications: BREEAM, Fitwel

Awards & Recognition

• Combatting Modern Slavery Award (Themis)
• Innovation Award in Asset Management (Pyramids of Wealth Management 2023)
• Notable Leaders in Sustainability 2023 (Crain)
• Human Rights Initiative of the Year 2023, Australia (Wealth & Finance International Ethical Finance Awards)
• Best Sustainable Investment Education Initiative (Investment Week Sustainable Investment Awards 2023)