Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Carbon emissions

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19, including factory closures, export controls, and border restrictions.
• Over-reliance on single suppliers and single-country supply routes.
• Higher costs associated with on-shoring.
• Lack of specialization and choice of suppliers for on-shoring.
• Concerns about capacity for on-shoring.
• Uncertainty surrounding Brexit and its impact on supply chains.
• Rising geopolitical tensions and protectionist trade policies.
• Lack of transparency and comparability in ESG disclosures.

Mitigation Strategies

• Supplier diversification and dual-sourcing.
• Near-shoring, re-shoring, and on-shoring strategies.
• Reducing product ranges.
• Increasing inventories.
• Adopting better, more agile inventory policies.
• Digitization of paperwork and adoption of blockchain technology.
• Automation of production processes.
• Leveraging artificial intelligence for demand planning, forecasting, and waste reduction.
• Developing credible, realistic, and measurable ESG commitments.
• Improving supply chain risk management and business continuity strategies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier diversification, dual-sourcing, near-shoring, re-shoring, on-shoring

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Shorter supply chains can help reduce carbon emissions.

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

• Climate Change
• Sustainable Finance
• Net Zero Transition

Climate Goals & Targets

Environmental Challenges

• Data availability and methodology challenges in managing trade-offs between net zero targets, profitability, and climate risk.
• Lack of integration of climate risk into ICAAP and strategy.
• Wide range of outcomes in transition risk modeling leading to high uncertainty.
• Limited coverage across industry, real estate, and transportation portfolios in net zero targets.

Mitigation Strategies

• Developing comprehensive net zero target disclosures including absolute/relative emissions data, assumptions, pathways, data scorecards, and client transition strategies.
• Leveraging climate stress test analytics to inform client transition planning, insights, and engagement.
• Developing tailored products and tools for large clients, combining green and sustainable linked financing with transition playbooks, tracking and benchmarking analytics, and customized operational solutions.
• Encouraging customers to provide more/better climate data and engaging them by offering transition analytics and solutions to help fill data gaps, analyze/challenge their existing transition plans, and propose alternative strategies if needed.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Sustainable finance products

Sustainable Products & Innovation

• Green, social, and sustainable linked bonds
• Green and sustainable linked loans
• Green mortgages and auto loans
• Equity capital raising and M&A advisory

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Advancement
• Strong Governance
• Climate Change
• Diversity, Equity, and Inclusion
• Data Security
• Professional Integrity

Environmental Achievements

• 78% reduction in total emissions from 2019 baseline year
• Improved data collection and methodology for GHG emissions

Social Achievements

• 92% employee retention rate (above industry average)
• Recognition as one of 15 global organizations with the most equitable and engaged workplaces by Diversio (US TAG, 2 years running)
• Launched Community Enrichment Solutions (CES) pro bono initiative to improve healthcare access in underserved communities
• Increased US representation of women by 12 percentage points from 2020-2023

Governance Achievements

• Adherence to A&M’s Code of Conduct and third-party code of conduct
• ISO 27001 certification for Security Program
• Annual compliance training for employees and third parties

Climate Goals & Targets

Environmental Challenges

• Data limitations in calculating Scope 2 emissions (using square footage estimation)
• Increased Scope 3 emissions due to firm growth
• Climate change impacts on business operations (physical and transition risks)

Mitigation Strategies

• Commitment to improve Scope 2 data quality and calculation methods
• Conducting a climate risk and opportunities assessment aligned with IFRS S2 Standards
• Implementing measures to reduce carbon footprint (reduced travel, telecommuting, recycling)
• Developing a detailed decarbonization plan with a Net Zero target by 2050

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier diversity program (33% spend with diverse suppliers in US)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Damage to infrastructure
• Work stoppages
• Harm to employee health and safety

Transition Risks

• Regulatory reporting requirements
• Client demands for climate risk analysis
• Reputational risk

Opportunities

• Supporting clients with decarbonization and climate risk management

Reporting Standards

Frameworks Used: TCFD, SASB, UN Global Compact, UN Sustainable Development Goals

Certifications: ISO 27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 16
• Goal 17

A&M's work supports the principles of these SDGs through its services and internal initiatives.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Vault Top Ranked 2024 (North America #3, Asia-Pacific #5, EMEA #7)
• Diversio Workplace Impact Award 2023 (US TAG)

Environmental Metrics

ESG Focus Areas

• Social Responsibility and Labor Practices
• Governance and Ethical Business Conduct
• Climate Change and Renewable Energy

Environmental Achievements

• Reduced furnace power consumption by 10% at an Indian alloy steel producer, saving about 2,800 MT of carbon dioxide emissions annually.
• Indian manufacturer invested in captive solar power, resulting in cost savings of USD 2.2-3.7 million annually.
• Value engineering for packaging at a leading Indian medtech company, reducing material use by 50% and cutting costs by approximately 47%.

Social Achievements

• Largest private hospital group in Southeast Asia supported universal healthcare program in Indonesia, providing affordable treatment with over 80% of facilities located in non-capital cities.
• Leading orthopaedic medical device manufacturer in Malaysia established an ESG Committee and introduced a supplier code of conduct.

Governance Achievements

• Leading orthopaedic medical device manufacturer in Malaysia established an ESG Committee to develop and implement its ESG management system.

Climate Goals & Targets

Environmental Challenges

• Lack of standardized ESG data
• Inability to directly link ESG initiatives to financial outcomes
• Lack of expertise within portfolio company management teams
• Resistance from portfolio companies
• Variance between investment time horizon and ROI horizon

Mitigation Strategies

• Recognize that one size does not fit all; focus on 2-3 relevant ESG levers.
• Measure ESG KPIs as rigorously as financial and operational KPIs and link them to financial outcomes.
• Develop roadmaps, cross-functional KRAs, and set up a governance structure to ensure seamless implementation.

Supply Chain Management

Responsible Procurement

• Supplier code of conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• EU ESG regulations such as the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD)

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Principles for Responsible Investment (UN PRI), Operating Principles for Impact Management (OPIM)

Certifications: Food and Drug Administration (FDA), International Organization for Standardization (ISO)

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Products made from recycled ocean plastic

Awards & Recognition

• Not disclosed