Climate Change Data

Wellington Management Company LLP

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:8,271 tCO2e/year (market-based)
Scope 1 Emissions:887 tCO2e/year
Scope 2 Emissions:1,128 tCO2e/year (market-based), 4,698 tCO2e/year (location-based)
Scope 3 Emissions:6,256 tCO2e/year
Renewable Energy Share:80% (US offices and employee homes)
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:0.6 MTCO2e/person (own source)

ESG Focus Areas

  • Climate Change
  • Biodiversity
  • Supply Chain Accountability
  • Diversity, Equity, and Inclusion
  • Board Structure

Environmental Achievements

  • 100% of US office-based and US employees’ home-based electricity use matched with renewable energy (approximately 80% of our total global electricity use)
  • Operational carbon neutrality achieved by the end of 2022 (relative to 2021 emissions; additional offsets purchased to account for estimated pre-pandemic travel levels)

Social Achievements

  • Launched an emerging markets-focused impact investing approach
  • Expanded Impact Measurement & Management (IMM) Practice and frameworks
  • Developed a firmwide sustainability education program

Governance Achievements

  • Formalized several forums designed to optimize cross-functional decision making (SIGC, SIMT, SILT, ISC)
  • Developed a proprietary climate Transition Alignment Rating (TAR)

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions by 2050 or sooner (32.4% of AUM aligned as of March 2022)
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Data limitations and exclusions in ESG and climate data
  • Supply chain disruptions and labor violations
  • Balancing conservation efforts with broader societal needs
Mitigation Strategies
  • Developed proprietary tools and technology for ESG and climate analysis (ESG Model Builder, CERA, NZ PV)
  • Engaged with companies to improve their ESG practices and disclosures
  • Collaborated with data providers to improve data quality and coverage
  • Implemented enhanced due diligence processes for third-party service providers

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Engaging with diverse suppliers
  • Implementing policies to prevent modern slavery and human trafficking

Climate-Related Risks & Opportunities

Physical Risks
  • Droughts
  • Flooding
  • Power supply disruptions
  • Earthquakes
Transition Risks
  • Regulatory changes
  • Market shifts
  • Stranded assets
Opportunities
  • Investing in companies that contribute to a lower-carbon future
  • Investing in companies that can help the world adapt to a changing climate

Reporting Standards

Frameworks Used: TCFD, GRI, UN SDGs, EU Taxonomy, SFDR

Certifications: LEED, BREEAM, BEAM Plus, Green Building Council Australia, NABERS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Environmental Finance’s ESG Innovation of the Year Award (climate research)
  • Citywire Spain Awards (various categories)
  • Investment Week Awards (various categories)

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Affordable housing
  • Health
  • Education
  • Financial inclusion
  • Alternative energy
  • Resource efficiency
  • Clean water & sanitation
  • Resource stewardship
  • Safety & security
  • Sustainable agriculture & nutrition
  • Digital divide

Environmental Achievements

  • Avoided 127.2 million tonnes of greenhouse gas (GHG) emissions through renewable energy generation
  • Avoided 116.4 million tonnes of GHG emissions through improved resource efficiency and resource stewardship
  • Equivalent to 182.1 TWh of renewable energy generation

Social Achievements

  • Provided or treated more than 1.5 billion cubic meters of water
  • Provided health care products or services to more than 186 million patients and customers
  • Supplied or financed more than 3.7 million units of affordable housing
  • Provided digital access to more than 1.2 billion people in developing countries
  • Provided education, training, and career support for 4 million people
  • Supplied access to financial services to more than 10.6 million underserved individuals and businesses

Governance Achievements

  • Engaged with 34 issuers to discuss climate policy, cybersecurity, board structure, executive compensation, and other material ESG topics

Climate Goals & Targets

Environmental Challenges

  • Quality and consistency of disclosed data vary significantly across companies and sectors
  • Perpetual tension between bespoke KPIs and simpler, output-based KPIs
  • Challenges in measuring impact
Mitigation Strategies
  • Refining systems and tools for impact management
  • Integrating KPIs into investor processes
  • Documenting rationale behind chosen KPIs consistently
  • Focusing on recognizing trends within data

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN SDGs

UN Sustainable Development Goals

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 17

Investments are aligned with Wellington's 11 impact themes, which closely overlap with the UN SDGs.

Awards & Recognition

  • Impact investing platform of the year