Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity & Inclusion

Social Achievements

• Annual engagement and DEI survey, allowing us to understand employee engagement and sentiment and collect DEI data.

Governance Achievements

• Established a governance structure that mirrored that of Pollen Street Limited.
• Appointed Jupiter Trustees Limited as the Guernsey Registered Office service provider and Link Company Matters Limited as the Company Secretary.

Climate Goals & Targets

Environmental Challenges

• Economic and market factors may affect the Group’s investments, track record or ability to raise new capital.
• The inability to secure new fund mandates or raise capital under existing mandates in an ever increasingly competitive market affecting the Group’s revenue and cash flows.
• The management fee rates, and other terms that the Group receives to manage new funds could be reduced, affecting the Group’s ability to generate revenue.
• Our Investment Assets are exposed to credit and market risks. They may be impacted by adverse economic and market conditions, including through higher impairment charges or reduced valuations.
• Risks associated with the physical effects of climate change, the risks that arise as economies transition towards greener solutions, and the risk of a regulatory breach associated with SFDR, TCFD, FCA, SEC reporting.
• Failure to attract, retain and develop talented individuals to ensure that the Group is able to deliver key performance objectives, an inclusive and diverse workforce to ensure the right skills are in the right place at the right time to deliver the Group’s strategy.
• Risks associated with information security and resilience, including: failure to invest and successfully implement appropriate technology; financial loss, data loss, business disruption or damage to reputation from failure of IT systems; data protection & information security; business continuity, disaster recovery and operational resilience; and financial or reputation losses arising from a cyber attack.

Mitigation Strategies

• Pollen Street operates closed ended funds without redemption rights for investors, allowing a greater degree of freedom to pursue investment objectives throughout macroeconomic cycles.
• Regular investment reviews are undertaken.
• The Investment Committees focus on investment strategy, exit processes and refinancing strategies throughout the life of an investment.
• The Group has a consistent track record of fundraising and delivering strong returns to investors.
• The Group has invested in its Investor Relations team to support capital raising across the Group and to internalise some capital raising costs.
• The Board believes that management fee rates generated are supported by the Company’s track record and the growing allocations to alternative investment market investments.
• Pollen Street’s management fee revenue is long term and contractual in nature.
• The Group has a clear track record of delivering investment returns that are resilient to market conditions and in line with published guidance.
• Investments are monitored closely as part of the Group’s ongoing investment monitoring programmes, adhering to the funds’ investment strategy.
• The Group has a diversified, granular portfolio of assets.
• Loans are subject to stringent underwriting and stress testing.
• The ESG Committee oversees Pollen Street’s ESG matters, including ESG-related risks.
• The Group is strengthening its approach to climate-related risk identification and mitigation, including the TCFD framework and disclosing accordingly.
• The Group has a set of minimum standards to ensure ESG risks are assessed and measured, which are incorporated into initial deal team investment assessments and ongoing portfolio management.
• Pollen Street has recently undertaken a project to identify and assess climate-related risks and opportunities at the Group level, providing recommendations to strengthen climate considerations in business processes and decision-making.
• The Group has reward and retention schemes in place for all employees, aligning individual, team, and organisational goals, driving value for the Group.
• The Group invests in both leadership development and ongoing development opportunities for all employees and has introduced a comprehensive induction programme for all new hires.
• Pollen Street is committed to raising awareness and encouraging diversity amongst the workforce and the ESG Committee spends significant time and effort progressing Pollen Streets DEI agenda.
• The Group maintains strong technical and operational controls against identified cyber and information security threats.
• Staff awareness…is enhanced through new joiner and ongoing training, and regular communications to staff about relevant threats observed across the industry.
• Redundant and resilient systems are deployed to protect the Group’s assets and are validated through regular testing and simulations.
• The Group holds a defined incident response plan…
• The Group invests annually in detailed external security reviews and penetration tests.
• All technology and security policies have been reviewed and updated during the year.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• ESG impact
• Responsible lending

Social Achievements

• Launched Ten Years Time (TYT) program to connect ESG impact with the firm and its people, partnering with Future First, Big Issue Invest, and Blue Ventures.

Governance Achievements

• Shares admitted to the Premium Segment of the LSE’s Main Market in October 2020.

Climate Goals & Targets

Environmental Challenges

• Tighter lockdown restrictions in the UK and extension of government support schemes impacting portfolio performance.

Mitigation Strategies

• Close watch over performance and ongoing customer engagement to ensure prudent portfolio management.

Supply Chain Management

Climate-Related Risks & Opportunities