Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate and the environment
• Diversity, equity, and inclusion
• Societal impact

Environmental Achievements

• Reduced carbon footprint year-on-year due to reduced air travel and hybrid working.
• 100% of gas and electricity in London and Edinburgh offices from renewable sources as of the end of 2021.
• Switched to more environmentally friendly stationery suppliers.

Social Achievements

• Enhanced family leave policies (increased maternity/adoption pay to 26 weeks full pay, paternity pay to six weeks full pay).
• Partnership with Arrival Education to provide opportunities for young people from low-income backgrounds.
• Supported numerous environmental initiatives through the Artemis Charitable Foundation.

Governance Achievements

• Established an Environmental Working Group to set goals and suggest ideas beyond regulatory requirements.
• Executive Committee members have objectives to promote diversity, equity, and inclusion.
• Signed the Women in Finance Charter, committing to a target of 30% women in senior management.

Climate Goals & Targets

Environmental Challenges

• Potential increase in carbon footprint in 2022 with the return to more normal business operations.
• Lack of diversity in asset management industry.
• Need to collect more data on cultural diversity.

Mitigation Strategies

• Commitment to meeting climate goals despite potential increase in footprint.
• Implementation of a Diversity, Equity, and Inclusion (DE&I) strategy with specific workstreams.
• Planning to collect ethnicity data in 2022.

Supply Chain Management

Responsible Procurement

• Working with local, independent businesses where possible.
• Switching to more environmentally friendly suppliers (e.g., stationery).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN-backed Principles for Responsible Investment, Taskforce on Climate-Related Financial Disclosures (TCFD), Net Zero Asset Managers Initiative

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 26.8m metric tonnes CO2e avoided
• 40,965,538 MWh of electricity production enabled

Social Achievements

• 38m customers that were previously excluded
• 604m patients treated
• 162k students graduating

Governance Achievements

• Improved disclosures related to injury and fatality rates at Valmont Industries following engagement

Climate Goals & Targets

Environmental Challenges

• Two consecutive years of underperformance relative to its benchmark index due to underwhelming returns from small and mid-cap companies, growth stocks, and higher cost of capital for smaller companies.
• Historic focus on disruptive impact at the companies’ product-level left the portfolio exposed to sub-optimal investment returns.

Mitigation Strategies

• Significant changes to the investment team and process, including a new investment team with expertise in sustainability and active ownership.
• Increased emphasis on active ownership and considering the wider impact that companies deliver through their conduct and footprint.
• Focused, outcomes-oriented approach to engagement prioritizing the most pressing issues.
• Combining assessments of impact with an investment approach that looks at investee companies through the lenses of quality and valuation.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, Science Based Targets initiative (SBTi)

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 12
• SDG 16

Each company invested in is mapped to a primary SDG at the underlying target level, considering how a company’s products and services align to the SDGs and mapping its revenues to the underlying Sustainable Development Goals.