Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Developed a proprietary responsible investment rating system (CTI RI Rating) incorporating SASB standards to assess companies' ESG performance and integrate ESG factors into investment decisions.

Climate Goals & Targets

Environmental Challenges

• Inconsistent and unreliable ESG data from companies, leading to difficulties in integrating ESG considerations into mainstream investment processes.
• Lack of consistent ESG disclosure standards across global jurisdictions.
• Variability in third-party ESG ratings and low correlation between these ratings and future market performance.

Mitigation Strategies

• Developed a proprietary ratings system (CTI RI Rating) combining a financial stewardship model and an ESG materiality model referencing SASB standards.
• Leveraged SASB's materiality framework to focus on financially material ESG factors, enhancing data quality and investment relevance.
• Used SASB's industry-specific standards to improve comparability and decision-useful ESG disclosures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Moved Boston headquarters to a LEED Platinum certified building
• Operates a London office in a BREEAM recognized building

Social Achievements

• Not disclosed

Governance Achievements

• Established a comprehensive corporate governance structure across North America, EMEA, and Asia Pacific, including Business Management Committees, Risk and Controls Committees, and Investment Oversight/Management Committees.

Climate Goals & Targets

Environmental Challenges

• Integrating the acquired BMO GAM (EMEA) business's governance and investment practices.
• Developing methodologies for net-zero commitment across all asset classes.
• Data limitations in assessing financed emissions and other climate-related metrics.

Mitigation Strategies

• Taking a thoughtful approach to integration to support client interests and regulatory compliance.
• Developing net-zero methodologies for listed companies and direct real estate, with plans for other asset classes.
• Using various data sources and specialist metrics (e.g., flood risk assessments) to enhance data quality.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Catastrophic weather events affecting company operations

Transition Risks

• Evolving client preferences
• Specific regulatory regimes in various markets
• Transition away from carbon-intensive activities

Opportunities

• Resource efficiency
• Technology
• Energy source diversification
• New products/services
• Market resilience

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Responsible and sustainable equity funds
• Social and green bonds
• Climate Opportunity Partners private equity fund
• European Sustainable Infrastructure strategy
• Carbon Neutral Real Estate Fund

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced operational emissions by 41% against the 2019 baseline.
• 7.10% ($44.9 bn) of AUM Net Zero aligned strategies as of December 2023.

Social Achievements

• Launched an Environmental Advisory Group (EAG) in North America in early 2023.
• Conducted 1,424 stewardship engagements with 867 companies in 2023, including 650 climate-specific engagements with 416 different issuers.

Governance Achievements

• Implemented a single, global active ownership approach in January 2023, including an integrated proxy voting policy.
• Integrated Net Zero tool into portfolio management system; integrated Net Zero alignment data into TCFD product-level reports for Net Zero aligned funds; converted one fixed income fund to Net Zero Transition Low Duration Credit strategy; implemented monitoring systems to track fund progress towards targets.

Climate Goals & Targets

Environmental Challenges

• Data gaps and methodological challenges regarding financed emissions metrics.
• Limited client demand for Net Zero aligned strategies in the North American market.
• Evolving client expectations for climate risk management.
• Limitations in physical risk data availability and uncertainty.
• Data gaps in small cap, emerging markets, and private companies regarding Scope 1, 2, and 3 emissions.

Mitigation Strategies

• Actively working to address data gaps and methodological challenges in financed emissions.
• Developing methodologies for other asset classes (e.g., sovereign bonds).
• Developed data, risk management, and reporting processes to meet client expectations.
• Broad product offering to suit differing client needs.
• Using qualitative and quantitative analysis to understand physical climate risk.
• Working with data providers to improve data coverage.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Catastrophic weather events
• Long-term climate shifts

Transition Risks

• Policy and regulation changes
• Technological advancements
• Market shifts
• Changing client preferences

Opportunities

• Investing in resource efficiency and low-carbon energy sources
• Increased client demand for climate-aware products

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Responsible and sustainable equity funds
• Social and green bond strategies
• Climate Opportunity Partners private equity fund
• Castle Mount Impact Partners LP strategy

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN’s Universal Declaration of Human Rights, UN Guiding Principles on Business and Human Rights, ILO’s International Labour Standards, OECD Guidelines for Multinational Enterprises, Wolfsberg Principles, UN Global Compact, Taskforce on Climate-related Financial Disclosures, CDP, IFC Performance Standards, Paris Agreement

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Increased focus on reducing plastic waste; Adidas produced over 11,000,000 pairs of shoes from recycled plastic waste in 2019.
• Nordic region's leadership in green bonds, with Sweden and Finland among the top 15 issuers in 2019.

Social Achievements

• Over $9 billion in social bonds issued in a three-week period to address the Covid-19 pandemic.
• Companies like Uber and Lyft partnering with hospitals and non-profits to provide free rides for key workers.

Governance Achievements

• Creation of distinct pools of research and stewardship personnel, and a Strategy and Implementation unit to enhance responsible investment capabilities.
• Active voting at 578 company meetings, with dissenting votes cast in 49% of cases.

Climate Goals & Targets

Environmental Challenges

• Uncertainty surrounding carbon pricing due to the Covid-19 pandemic and potential economic recession.
• Growing plastic waste and the need for more circular production systems.
• Difficulty in assessing social factors compared to environmental and governance aspects.

Mitigation Strategies

• Engagement with companies to enhance greenhouse gas emissions disclosures and set reduction goals.
• Encouraging companies to adopt more circular production models and reduce plastic waste.
• Issuance of social bonds to address the Covid-19 crisis and support communities.

Supply Chain Management

Responsible Procurement

• Oversight of supply chains to mitigate potential human rights risks.

Climate-Related Risks & Opportunities

Transition Risks

• Uncertainty surrounding carbon pricing and potential economic recession.

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: SASB, TCFD

UN Sustainable Development Goals

• SDG 9: Industry, Innovation and Infrastructure
• SDG 3: Good Health and Well-being

Initiatives related to sustainable products, green bonds, and Covid-19 response.

Sustainable Products & Innovation

• Adidas's fully recyclable running shoe ('Futurecraft Loop')