RSE Collection, LLC
Climate Impact & Sustainability Data (2016-11 to 2018-12)
Reporting Period: 2016-11 to 2018-12
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Potential negative changes within the collectible automobile industry.
- Lack of Diversification.
- Industry concentration and general downturn in industry.
- Volatile demand for collectible goods, including collectible automobiles.
- Difficulties in determining the value of the underlying assets.
- Potential loss of or damage to the Underlying Assets.
- Competition in the collectible automobile industry from other business models.
- Potentially high storage, maintenance and insurance costs for the Underlying Assets.
- Refurbishment and inability to source original parts.
- Insurance may not cover all losses.
- Third party liability.
- Dependence on the brand of the manufacturer of underlying assets.
- Dependence of an underlying asset on prior user or association.
- Title or authenticity claims on an underlying asset.
- Forced sale of underlying assets.
- Lack of distributions and return of capital.
Mitigation Strategies
- The Manager must ensure adequate storage facilities, maintenance work and insurance coverage.
- It is anticipated that as the Company acquires more underlying assets, the Manager may be able to negotiate a discount on the costs of storage, maintenance and insurance due to economies of scale.
- The Company will seek to mitigate its exposure to refurbishment risks.
- The Company will seek to mitigate its exposure to title or authenticity claims.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Regulation A