Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting investments sensitive to travel and the global macro environment.
• Swiftness of market swoon in March 2020 due to the pandemic.
• Increased cybersecurity risk due to increased use of electronic and remote communication tools.

Mitigation Strategies

• Focusing on margin availability, raising capital by selling relatively outperforming stocks and buying undervalued stocks.
• Selling down stocks with worse liquidity or balance sheets.
• Planning and testing systems for remote work-from-home scenarios, moving technology infrastructure to the cloud.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• More frequent and intense extreme weather events

Transition Risks

• Reputational, market, regulatory, policy, legal and technology-related risks
• Increased cost of carbon emissions and competition from renewable energy

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Resurgence of Covid-19 with the Delta variant and impediments to universal vaccination.
• Decline in small-cap markets.
• Increased volatility in financial markets due to inflation and tapering by the U.S. Fed.
• Supply chain bottlenecks.
• Rising inflation rates.
• Lack of investment in the oil and natural gas market.
• De-carbonization efforts impacting energy markets.

Mitigation Strategies

• Monitoring market indicators for changes in inflation expectations.
• Investing in Canadian oil and gas companies (Paramount Resources and Arc Resources) due to potential inflation risks and rising energy prices.
• Expecting that the passage of time may resolve some of the economic challenges related to Covid-19, Evergrande default, and supply chain issues.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• More frequent and more intense extreme weather events

Transition Risks

• Increased reputational, market, regulatory, policy, legal and technology-related risks.
• Significant changes in customer perceptions and preferences, the increasing cost of carbon emissions and competition from renewable energy.

Environmental Metrics

ESG Focus Areas

• Climate Change

Climate Goals & Targets

Environmental Challenges

• Climate change risk through portfolio investments (potential direct impact of extreme weather events and indirect impact of supply chain disruptions), transition risks from movement toward a low-emission economy impacting carbon-intensive industries.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• More frequent and intense extreme weather events

Transition Risks

• Increased reputational, market, regulatory, policy, legal and technology-related risks from movement toward a low-emission economy

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Climate change risk (physical risks from extreme weather and supply chain disruptions, transition risks from low-emission economy shifts impacting carbon-intensive industries).

Mitigation Strategies

• Indirect impact mitigation through portfolio investments; monitoring of investee companies and reaction to market conditions.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Supply chain disruptions

Transition Risks

• Reputational risks
• Market risks
• Regulatory risks
• Policy risks
• Legal risks
• Technology-related risks

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Climate change risk (indirect impact through portfolio investments, including extreme weather events and supply chain disruptions; transition risks from low-emission economy impacting carbon-intensive industries).

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• More frequent and intense extreme weather events

Transition Risks

• Increased reputational, market, regulatory, policy, legal and technology-related risks; changes in customer perceptions and preferences; increasing cost of carbon emissions; competition from renewable energy