Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Saturna Sustainable Bond Fund held 25% of its assets in green bonds at the end of Q1 2020.
• Saturna Sustainable Equity Fund and Saturna Sustainable Bond Fund have lower carbon intensity than the MSCI ACWI index.

Social Achievements

• 50% of the managers of Saturna Sustainable Equity Fund and Saturna Sustainable Bond Fund are female.
• Increased reporting on SDGs across holdings, with improvements in gender equality and health and safety management systems.

Governance Achievements

• Increased percentage of holdings with strong discrimination and diversity policies.
• Improved board independence in holdings.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting economic growth, social programs, and increasing portfolio risk.
• Supply chain disruptions.
• Deepening inequalities.

Mitigation Strategies

• ESG lens used to identify and mitigate risks.
• Proactive measures to reduce risk, including focusing on higher-investment grade credit issuers and defensive industries.
• Strategies such as employing a butterfly strategy to manage yield curve changes.

Supply Chain Management

Responsible Procurement

• Policies in place to promote safety across the business and supply chain and protect labor rights.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN SDGs

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 7
• Goal 8
• Goal 10
• Goal 13
• Goal 16

The report details how investments contribute to these goals through various initiatives and case studies.

Environmental Metrics

ESG Focus Areas

• Greenhouse gas (GHG) emissions
• Renewable energy use
• Water consumption
• Diversity & Inclusion
• Health & Safety Management Systems
• Board Independence & Diversity
• Ethical Business Practices

Environmental Achievements

• Amana Growth and Income Funds historically had significantly lower GHG emissions intensities than the S&P 500. Water use intensity for all Amana Funds was substantially lower than their respective benchmarks.
• Trane Technologies reduced customer emissions by 93 million metric tons CO2-e and cut its own Scope 1 and Scope 2 emissions by 31%.

Social Achievements

• Amana Funds reported similar gender diversity levels to the S&P 500. The Growth Fund saw management diversity improve.
• Adobe maintained global gender pay parity for the fifth year in a row, and URM employee pay parity for the third year in a row.
• Growth and Income Funds reported lower lost time incidence rates than the S&P 500.

Governance Achievements

• Amana Funds lead their respective benchmarks on gender, ethnic, and cultural diversity measures.
• Qualcomm's board is 87% independent and includes four women and three culturally or ethnically diverse members.
• Eli Lilly maintains a 24-hour “Ethics and Compliance Hotline” and corporate auditing.

Climate Goals & Targets

Environmental Challenges

• Weaker performance in carbon intensity compared to prior years for Amana Funds.
• Volatility in Amana Funds' ESG performance due to concentration in fewer companies than benchmarks.
• Rising average injury rates among holdings in the Developing World Fund.
• Lower rate of adoption of whistleblower and anti-corruption policies among Developing World Fund holdings compared to developed markets.
• Slowdown in the percentage of Amana Growth Fund holdings reporting 33% or higher minority representation on the board.

Mitigation Strategies

• Continued focus on performance rather than just stated goals.
• Analysis of corporate policies and targets, judging firms on their ability to deliver against goals.
• Investing in companies with stronger GHG reduction programs and renewable energy targets.
• Monitoring the increase in injuries per one million worked hours for holdings in the Developing World Fund.
• Further investigation into the decrease in minority representation on the board of Amana Growth Fund holdings.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Wildfires
• Droughts

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Sustainable Products & Innovation

• Trane Technologies' heating and cooling solutions
• Rockwell Automation's energy-efficiency related products