Climate Change Data

Environmental Metrics

ESG Focus Areas

• board/employee diversity
• climate change
• workplace rights
• global energy transition
• just transition

Climate Goals & Targets

Environmental Challenges

• Companies' inadequate response to climate change-related risks.
• Poorly written shareholder proposals with vague asks or perceived as too prescriptive.
• Political environment shifting to a more neutral outlook on ESG issues.
• Upcoming SEC regulations causing companies to wait for guidance before acting.
• Proxy advisor recommendations aligning more with management.

Mitigation Strategies

• Direct dialogue with companies.
• Proxy voting.
• Shareholder resolutions (as a last resort).
• Collaboration with investor partners.
• Negotiation to withdraw proposals on terms that advance objectives.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals, UN Principles for Responsible Investment (UN PRI), Paris Climate Accord

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Investing

Environmental Achievements

• Developed a climate-integrated investment framework for the utilities sector.
• Identified utilities that are decarbonizing due to strong economics.

Social Achievements

• Not disclosed

Governance Achievements

• Developed the Calvert Regulatory Pathways to Decarbonization (CRPD) metric to evaluate regulatory pathways for decarbonization.

Climate Goals & Targets

Environmental Challenges

• Inconsistencies in emissions data due to operational and regulatory differences in the utilities sector (emissions arbitrage).
• Challenges in conducting meaningful Scope 3 analysis.
• Limitations of financed emissions as a single metric for evaluating climate risk.
• Overstatement of emissions reductions in company targets.
• Rising affordability and reliability risks hindering decarbonization.
• Lack of operational control by restructured utilities over power generation.

Mitigation Strategies

• Developed a climate-integrated investment framework to address emissions arbitrage and provide a more accurate assessment of climate risk.
• Standardization of emissions targets by benchmarking to the most recently available data (2022).
• Holistic approach to evaluating company emissions profiles, considering Scope 1, 2, and 3 emissions.
• Development of the Energy Transition Investment Factor (ETIF) to assess regulatory risk-adjusted emissions reductions and investment opportunities.
• Focus on financing emission reductions rather than shunning high-emitting sectors.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Wildfires
• Hurricanes

Transition Risks

• Regulatory changes
• Market shifts
• Stranded assets

Opportunities

• Investment opportunities in decarbonization.
• Growth in renewable energy.

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

The investment framework aims to support the transition to a low-carbon economy and promote sustainable energy solutions.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed