Unigestion
Climate Impact & Sustainability Data (2021, 2022)
Reporting Period: 2021
Environmental Metrics
Renewable Energy Share:39%
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- 39% of energy used by our companies is from renewable sources
- 100% of companies assessed on ESG in 2021 improved their ESG score
- Treatment and recycling of waste results in significant CO2 emission reduction (at run rate will divert 300,000+ tons of waste from landfill disposal)
- Introduction of alternative fuels for collection fleet (8% of fleet on biodiesel)
- Electrification of entire fleet since 2011 and target to operate fully electrified by 2030
Social Achievements
- Actively promotes gender diversity from board to junior level and equal pay
- Workplace environment and safety policies in line with Australian standards, selectively extending them to overseas subsidiaries
- Promoting gender diversity on firm and portfolio company level (min. 40% target)
- High ethnic diversity across the entire workforce of the company.
- Above industry average health & safety measures, health insurance for workforce in place
- Promoting equal pay through transparent gender pay reporting
- Ranked in the top 30 employers in the UK with the “Great Places to Work’ certification
- Strong Health & Safety features for all employees
Governance Achievements
- Inclusion of the OECD Guidelines for Multinational Enterprises on responsible business conduct
- Staff is trained annually to adhere to ESG policy and recognize potential issues
- The Audit and Risk Committee is responsible for managing ESG risks, ESG related KPIs are incorporated into reporting for all portfolio holdings
- Independent board membership in portfolio companies, incl. independent Chairman
- Additional committees (e.g. audit, remuneration) where applicable
- Policies: anti-money laundering, anti-bribery, etc.
- All relevant policies on code of conduct, ethics and anti-money laundering/corruption policies in place
- Formation of an ESG committee to follow and verify all related activities/initiatives
- External remuneration committee
- External audit committee
Climate Goals & Targets
Long-term Goals:
- Net zero greenhouse gas emissions by 2050 or sooner
Medium-term Goals:
- 30% of its AUM in line with net zero by 2030
Environmental Challenges
- Lack of standardized reporting on ESG for the full portfolio for some fund managers.
- Some ECD investees exhibited a higher absenteeism rate due to the COVID-19 impact.
- APAC companies scored lowest on ESG process.
Mitigation Strategies
- Engagement with fund managers to monitor their progress on ESG factors and improve reporting.
- Ongoing engagement with investee companies to improve KPIs.
- Providing guidance and support to companies on ESG reporting and implementation.
Supply Chain Management
Climate-Related Risks & Opportunities
Opportunities
- Energy transition
- Green mobility
- Green construction
- Low-carbon industry
- Forestry
- Land management
- Circular material
Reporting Standards
Frameworks Used: SASB, SFDR, TCFD, UN PRI
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Climate Change
- Social
- Governance
Environmental Achievements
- 53% of fund managers improved their ESG score in 2022
- 41% of our companies improved their ESG score in 2022
- Launched Climate Impact Fund - first Article 9 Fund
- Published Principle Adverse Impact (PAI) indicators
Social Achievements
- 95% of reviewed fund managers monitor health & safety incidents
- Improved ESG scores across multiple portfolio companies
- Initiatives to increase percentage of women in senior positions
Governance Achievements
- 86% of US fund managers assess board independence
- Engagement with fund managers to improve board diversity
- Implementation of engagement plans with clear objectives and timelines
Climate Goals & Targets
Long-term Goals:
- Achieve net-zero emissions across investments
Medium-term Goals:
- Improve ESG scores across portfolio companies and fund managers
Short-term Goals:
- Increase data availability for PAI indicators
Environmental Challenges
- Geographical discrepancies in ESG emphasis (Europe leading, US lagging)
- Low availability of PAI data from fund managers
- Need for greater standardization of ESG data and reporting
Mitigation Strategies
- Developed a proxy methodology to measure PAIs using public market comparables
- Supporting the ESG Data Convergence Initiative (EDCI)
- Annual data collection campaigns to improve data availability
- Active engagement with fund managers and companies to improve ESG performance
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: SFDR, UN PRI
Awards & Recognition
- Best ESG Firm: Mid Cap at the Private Equity Wire ESG AAA Awards in 2022