Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• Lack of a unified standard for ESG investing
• Inconsistent ESG ratings from different agencies
• Limited data availability for comprehensive ESG evaluation
• Confusion over definitions of ESG-related terms

Mitigation Strategies

• Brompton uses a common-sense approach, focusing on a company's plans to improve ESG practices and their realism and impact.
• Brompton does not rely heavily on any particular ESG score from rating agencies.
• Brompton considers ESG for risk management and valuation purposes.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• environmental sustainability
• diversity of employees
• corporate governance

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on businesses
• Increased volatility in financial markets
• Inflationary pressures
• Global political tension and military events

Mitigation Strategies

• Diversification of investment portfolio
• Covered call writing strategy to reduce volatility
• Hedging of foreign currency exposure

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• environmental sustainability
• diversity of employees
• corporate governance

Environmental Achievements

• Increased investment in companies with positive ESG characteristics, including Albemarle Corp (lithium producer) and Glencore PLC (commodities producer with emissions reduction efforts).

Social Achievements

• Glencore PLC, a portfolio company, is working to improve safety and diversity.

Governance Achievements

• Glencore PLC, a portfolio company, is building and implementing an ethics and compliance program.

Climate Goals & Targets

Environmental Challenges

• Market volatility due to inflation, geopolitical tensions (Ukraine and Russia), and banking sector instability (Silicon Valley Bank, Signature Bank, Credit Suisse).

Mitigation Strategies

• The Fund does not have direct exposure to the three banks mentioned. The Manager uses a multi-disciplinary investment process that includes fundamental, qualitative, and technical research to construct the portfolio and integrates ESG considerations into the fundamental analysis. The Fund also uses covered call options to reduce volatility and generate income.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• environmental sustainability
• diversity of employees
• corporate governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Diversity of employees
• Corporate governance

Environmental Achievements

• Increased investment in companies with positive and/or improving environmental, social and governance characteristics. Specific examples include Saint Gobain's decarbonization efforts, General Electric's renewable energy initiatives, Hitachi's CO2 emission reduction targets, Hydro One's net-zero commitment, Shin-Etsu Chemical's ESG committee focused on emission reduction and eco-friendly products, Waste Connections' waste reduction and biogas recovery goals, and Welltower's goal to reduce greenhouse gas emissions, energy, and water usage by 10% by 2025.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Weakness in the Chinese economy impacting some material holdings.
• Higher inflation and stronger economy potentially leading to underperformance from interest-rate sensitive stocks.

Mitigation Strategies

• Increased Industrials exposure with companies benefiting from secular growth trends (data center build-out, electrification, reshoring), many with cost-plus contracts as a hedge against inflation.
• Funding these increases through sales in Utilities and Communication Services.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed