Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Responsible Investing
• Corporate Social Responsibility

Environmental Achievements

• Reduced emissions by increasing its purchase of electricity from renewable sources to 74% from 62% the previous year (in one specific company case study)
• Improved water use efficiency by 7% towards a 2025 target of 20% (in one specific company case study)
• Achieved 85% towards a 2030 goal to partner with the highest water-risk operating communities to replenish 100% of water used in their beverages in those communities (in one specific company case study)
• Over 90% of packaging is recycled, reusable and/or compostable (in one specific company case study)

Social Achievements

• All five UBP funds with the French ISR Label and all five funds with the Febelfin “Towards Sustainability” Label successfully passed the audit and labels were renewed
• Launched a project to increase female representation in senior management over the next 3-5 years
• Organized “Women in Finance” lunch & learn sessions in the London office

Governance Achievements

• Strengthened stewardship governance with the revised Sustainability Steering Committee
• Appointed a Group Head of Sustainability to develop a clear vision and roadmap on sustainability
• Executive compensation is linked to the achievement of sustainability objectives

Climate Goals & Targets

Environmental Challenges

• Market volatility due to rising interest rates, the Russia/Ukraine conflict, and China's slowdown
• Data inconsistencies between different ESG ratings and incomplete Scope 3 emissions data
• Challenges in increasing female representation at the senior management level

Mitigation Strategies

• Maintained a shorter duration exposure in fixed income portfolios to reduce mark-to-market losses
• Exited all local currency exposure to Russia and significantly reduced exposure in sovereign hard currency bonds
• Reduced positions in long-duration stocks in equities portfolios
• Developed a unified ESG data management system to improve data quality and consistency
• Launched a project to increase female representation in senior management

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of climate-friendly investment products

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Third-party Assurance: Limited assurance on a selection of GRI KPIs at the Group level and carbon emissions data pertaining to UBP AM funds and mandates

UN Sustainable Development Goals

• SDG 7
• SDG 13

Impact investing strategies aim to contribute to the SDGs, particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action).

Sustainable Products & Innovation

• Sustainable infrastructure investment strategy
• Private markets fund focused on social and affordable housing

Awards & Recognition

• CDP Europe Awards
• ESG Investing Awards
• French ISR Label
• Febelfin “Towards Sustainability” Label

Environmental Metrics

ESG Focus Areas

• Biodiversity
• Climate Change
• Social Inequality
• Sustainable Communities
• Financial Inclusion

Environmental Achievements

• 82% of UBAM - Positive Impact Equity, 64.7% of UBAM - Biodiversity Restoration and 54.6% of UBAM - Positive Impact Global Equity meet the science-based target for emissions reduction by the end of 2023.
• BRI became the first bank in the portfolio to disclose financed emissions, 7% below 2022 levels.

Social Achievements

• Hosted the “Nature Calls” biodiversity conference in London with 115 participants.
• Ongoing engagement with companies to improve emissions disclosure and transparent practices.

Governance Achievements

• Increased frequency of Impact Advisory Board meetings to three times in 2023.
• Impact Investment team voted in line with company recommendations in almost 90% of cases in 2023.

Climate Goals & Targets

Environmental Challenges

• Inflation, interest rate hikes, and geopolitical tensions crowding out climate change, nature, and social inequality communications.
• Falling short of 2030 commitments for the UN Sustainable Development Goals (SDGs).
• Limited corporate disclosure of location-specific data on company activities and biodiversity.
• Difficulties in tracking biodiversity in real time and at scale for company reporting.
• Uncertainty about nature-related regulations and implementation.
• Difficulty in measuring biodiversity improvement.
• Lack of consumer connection with biodiversity.

Mitigation Strategies

• Partnering with NGOs, biodiversity experts, and other stakeholders to address biodiversity challenges.
• Collaboration with the University of Cambridge’s Institute for Sustainability Leadership (CISL).
• Developing the Impact Engagement Framework (IEF) to monitor progress and investor additionality.
• Mapping GBF targets to the existing framework and embedding findings from the “Nature Calls” event into the engagement approach.
• Agitating for progress on climate and science-based targets.
• Working to convince more emerging market companies to adopt SBTi and adapt to emerging market specificities.
• Utilizing the Impact Engagement Framework (IEF) for annual audits and targeted engagements.
• Developing a Best Practice Guide for corporates based on six years of IEF data.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Tariffs and trade barriers impacting the cost and speed of the energy transition.

Reporting Standards

Frameworks Used: UN SDGs, Global Biodiversity Framework (GBF), Taskforce on Nature-related Financial Disclosures (TNFD), Science Based Target Network (SBTN), TCFD

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

Investments in companies addressing these goals through various initiatives.