Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community Engagement
• Sustainable Finance

Environmental Achievements

• Avoided 5,454.42 tCO2e emissions through storing and exporting renewable energy.
• Stored 7,884.56 MWh of renewable energy.

Social Achievements

• Two-thirds of the Investment Manager’s executive team were from non-white ethnicities.
• Nearly half of the Investment Manager’s employees were women.
• Donation to UNICEF for a solar-powered water system in Mozambique.

Governance Achievements

• Established an in-house ESG team.
• Aligned with SFDR and TCFD frameworks.
• Strengthened risk management by hiring a Head of Operational Risks.

Climate Goals & Targets

Environmental Challenges

• Current GHG Protocol does not adequately address accounting methodologies for storage assets.
• Lack of clarity in accounting for emissions from energy consumed by storage assets.

Mitigation Strategies

• Working with industry to develop a consistent methodology for reporting Scope 2 emissions from battery storage assets.
• Revising ESG and sustainability strategy to ensure embedding throughout the company and investment manager.

Supply Chain Management

Responsible Procurement

• Code of Conduct to prevent child labor, forced labor, and modern slavery in battery supply chain.

Climate-Related Risks & Opportunities

Opportunities

• Capitalizing on growing need for decarbonization of energy sector.

Reporting Standards

Frameworks Used: SFDR, TCFD, UN SDGs, PRI

UN Sustainable Development Goals

• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 12
• Goal 13

The company's activities contribute to these goals through various initiatives detailed in the report.

Awards & Recognition

• London Stock Exchange Green Economy Mark

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Supply Chains
• Sustainable Finance
• Community Engagement

Environmental Achievements

• Avoided 3,589.48 tonnes of CO2e emissions
• Stored 9,054.53 MWh of renewable electricity

Social Achievements

• 40% of senior management positions held by women at the Investment Manager
• Donation to AFBE-UK to promote diversity in engineering
• Joined the Fair Cobalt Alliance to improve cobalt mining conditions

Governance Achievements

• Implemented anti-financial crime policy and training
• Established whistleblowing policy
• Regular IT, data and cybersecurity training for staff

Climate Goals & Targets

Environmental Challenges

• High share of non-renewable energy consumption in some grids (72.1%)
• Climate-related risks (heatwaves, wildfires, water stress)
• Challenges in accurately measuring the full value of battery storage's contribution to emissions reduction

Mitigation Strategies

• Investing in battery storage to integrate renewables and reduce reliance on fossil fuels
• Climate risk assessment to identify and manage vulnerabilities
• Working with consultants to improve emissions calculation methodologies

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct including conflict minerals, slavery, child labor, and human trafficking compliance

Climate-Related Risks & Opportunities

Physical Risks

• Heatwaves
• Wildfires
• Water stress
• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Investor preferences

Opportunities

• Increased demand for energy storage due to renewable energy growth
• Access to green financing

Reporting Standards

Frameworks Used: SFDR, TCFD, UN SDGs, PRI (reporting planned for 2024)

UN Sustainable Development Goals

• Goal 5
• Goal 6
• Goal 7
• Goal 9
• Goal 12
• Goal 13
• Goal 8

Alignment detailed in report, focusing on gender equality, water management, renewable energy, sustainable infrastructure, consumption patterns, climate action, and labor rights.

Awards & Recognition

• London Stock Exchange Green Economy Mark

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Responsibility
• Governance

Environmental Achievements

• Increased operational capacity by 27% from 291.6 MW to 371.5 MW, avoiding 15,178 tonnes of CO2e and storing 26,232 MWh of renewable electricity.
• Implemented AI-driven battery data analytics software to improve safety and reduce risk of thermal runaway.

Social Achievements

• Continued membership in the Fair Cobalt Alliance to improve working conditions in cobalt mining communities in the DRC.
• Donated £20,000 to FareShare, redistributing the equivalent of 100,000 meals.
• Organized a corporate volunteering day with FareShare partner charity Ace of Clubs.

Governance Achievements

• Published a Responsible Investment Policy and submitted its first public assessment report under the PRI framework.
• Continued reporting under Article 8 of SFDR and TCFD.
• Implemented periodic training on topics including money laundering, bribery and corruption, and cybersecurity.

Climate Goals & Targets

Environmental Challenges

• Volatility in commodity prices (e.g., lithium), potentially increasing capital and operational costs.
• Slowdown in renewable energy deployment, reducing demand for battery energy storage services.
• Growing stakeholder expectations regarding ESG performance and disclosure, increasing operational costs.
• Reputational damage from negative environmental and social value chain impacts.
• Policy uncertainty regarding clean energy incentives and revenue projections.
• Acute physical hazards (heatwaves, wildfires, storms, floods) causing potential damage to infrastructure and operational disruptions.
• Chronic physical hazards (extreme temperatures) exceeding asset design parameters, reducing asset performance.

Mitigation Strategies

• Projected revenue curves factor in potential commodity price fluctuations; exploring alternative energy storage technologies.
• Continuous monitoring of policy landscape and renewable penetration trends; investment policy open to exploration of all OECD markets; engagement with policymakers and regulators.
• Dedicated ESG team working with internal and external stakeholders; reporting against various frameworks (SFDR, TCFD, PRI); external ESG experts for guidance.
• Improved visibility of supply chain processes; EU Battery Regulation compliance; supplier KYC checks; contractual requirements for partner compliance.
• Investment policy open to exploration of all OECD markets; investment analysis accounts for stated policy climate scenarios; engagement with policymakers and regulators.
• Consideration of climate-related factors in development locations; adaptive measures in asset design; weather emergency preparation measures in Texas.
• Evaluation of specifications with consideration of expected climatic conditions; design for operation within a range of temperatures.

Supply Chain Management

Supplier Audits: Annual data collection from EPC, AM, and O&M suppliers

Responsible Procurement

• Supplier KYC checks
• Contractual requirements for partner compliance with regulations and Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Heatwaves
• Wildfires
• Storms
• Floods
• Extreme Temperatures
• Water Stress
• Drought
• Coastal Flooding
• Riverine Flooding

Transition Risks

• Commodity price volatility
• Slowdown in renewable energy deployment
• Stakeholder expectations on ESG
• Reputational damage
• Policy uncertainty

Opportunities

• New low-carbon energy storage technologies
• Alignment with transition policy
• Cost of carbon
• Access to capital
• Increased demand for energy storage due to climate volatility

Reporting Standards

Frameworks Used: SFDR (Article 8), TCFD, PRI

Awards & Recognition

• London Stock Exchange’s Green Economy Mark