Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Social Housing
• Governance

Environmental Achievements

• 60% of portfolio invested in renewable energy, avoiding nearly a million tonnes of CO2 emissions annually.

Social Achievements

• Investments in supported living have funded many properties across the UK, offering high-quality accommodation for people with disabilities.
• Investments in renewables create valuable job opportunities and supply chains.

Governance Achievements

• One third of Board Directors are female.
• Board actively progressing its succession plan with a focus on diversity.

Climate Goals & Targets

Environmental Challenges

• Difficulty in measuring Scope 3 emissions as a debt fund.
• Impact of extreme weather conditions on existing infrastructure (e.g., overheating in social housing).
• Biodiversity loss.

Mitigation Strategies

• Commenced development and testing of methods for measuring emissions from investment portfolio (with assistance from Gravis).
• Encouraging and directing investments in decarbonisation of existing buildings, including energy-efficient retrofit programs.
• Developing new ways of monitoring portfolio for physical risks from extreme weather.
• Intending to integrate and track biodiversity loss risk within investment process, including requiring or providing financing for habitat creation.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Green Economy Mark (London Stock Exchange)

Environmental Metrics

ESG Focus Areas

• Sustainable Investing
• Net-Zero Transition
• Energy Transition
• Transport
• Circular Economy
• Food Production
• Carbon Sequestration
• Carbon Capture and Storage

Environmental Achievements

• Early investor in offshore wind, anaerobic digestion, and battery storage
• Commenced work on a net-zero-focused fund

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Navigating the complexities of SFDR and EU Taxonomy regulations
• Determining if/when funds meet SFDR Article 9 criteria
• Defining 'sustainable investment' consistently
• Data comparability across funds
• Assessing good governance in infrastructure funds (especially debt-focused)
• Considering the entire investment chain (including supply chain sustainability)
• Lack of clear guidance on transitioning assets

Mitigation Strategies

• Collaboration between LPs and GPs
• Transparent communication with LPs
• Monitoring investments and regulatory developments
• Utilizing ESG Data Convergence Initiative for standardized metrics
• Working with data providers to refine assessment tools
• LPs providing expertise to GPs on disclosures
• Educating investors on SFDR's purpose
• Engaging with policymakers and regulators

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Moving towards sustainable procurement practices

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Investing in transition assets

Reporting Standards

Frameworks Used: SFDR, EU Taxonomy

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 mitigation and adaptation
• Energy transition
• Critical infrastructure
• Affordable living
• Social housing
• Education
• Healthcare
• Gender equality
• Decent work and economic growth
• Industry, innovation and infrastructure
• Sustainable cities and communities
• Responsible consumption and production

Environmental Achievements

• Achieved carbon neutrality in operations by 2023
• Invested c.£740 million in renewable energy projects (GCP Infra)
• Completed GRESB assessment for Blackcraig wind farm
• Improved carbon emissions reporting to include Scope 3 emissions from employee commuting and purchased goods and services

Social Achievements

• Continued charity partnership with Little Village, raising c.£55,000 and contributing 160 volunteer hours
• Introduced formal DEI policy and diversity training
• Conducted employee feedback survey with 85% participation
• Introduced 'above and beyond' awards

Governance Achievements

• Implemented a voting and engagement policy for open-ended funds
• Published first voting and engagement report
• Implemented ESG incentive schemes in loan documentation for GCP Asset Backed
• Progressed B Corp assessment

Climate Goals & Targets

Environmental Challenges

• Transition risk: funds may become non-viable due to legislation, regulation, or market changes
• Technological risk: assets may become obsolete
• Physical risk: climate change may lead to business interruption
• Limited opportunities to vote on environmental and social issues

Mitigation Strategies

• Comprehensive risk framework and compliance process
• ESG due diligence processes
• Monitoring and engagement with investee companies
• Climate risk assessments for closed-ended funds
• Carbon offsetting scheme
• Revised business travel policy
• Working with other shareholders to encourage improvement

Supply Chain Management

Responsible Procurement

• Supplier-specific approach to reporting Scope 3 emissions from purchased goods and services

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Heat stress
• Water stress
• Fires and wildfires
• Severe winds and storms

Transition Risks

• Policy or regulatory changes
• Technological changes
• Market shifts
• Reputational risks

Opportunities

• Funding energy-efficient buildings
• Increased demand for renewable energy assets
• Digital technologies to reduce emissions

Reporting Standards

Frameworks Used: PRI, TCFD, UN Global Compact, UK Stewardship Code 2020, SASB, GRESB, UN SDGs

Certifications: ISAE 3402, BREEAM (Excellent)

Third-party Assurance: Deloitte LLP

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 17

Investments in assets integral to society, contributing to a greener economy

Sustainable Products & Innovation

• Green hydrogen production facility

Awards & Recognition

• Green Economy Mark (GCP Infra)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion (DEI)
• Renewable Energy
• Social Housing
• Responsible Investment

Environmental Achievements

• 62% of the portfolio invested in renewable energy projects, generating 1,320 GWh of renewable energy (equivalent to powering 488,842 average homes)
• Implemented an ESG policy to formalize ESG processes and ensure responsible investment practices align with the Investment Adviser’s responsible investment policy.
• Investment Adviser obtained B Corp certification with a score of 99.4.

Social Achievements

• 12% of portfolio invested in supported living, providing accommodation for vulnerable adults.
• 26% of portfolio invested in PPP/PFI projects in healthcare, education, waste, housing, energy efficiency, and justice sectors.
• Investment Adviser supported the Young Women in Finance and 10,000 Black Interns programs.
• £3.9 million donated to Community Benefit Funds since IPO.

Governance Achievements

• Implemented an ESG policy.
• Investment Adviser achieved B Corp certification.
• Improved PRI score for the second consecutive year.
• Board maintains 49% gender diversity of SPV company boards.

Climate Goals & Targets

Environmental Challenges

• Company shares traded at a material discount to NAV.
• Slower than expected progress on disposals due to market delays.
• Challenges in gas-to-grid anaerobic digestion projects in Scotland.
• Ongoing Ofgem audits relating to the accreditation and ongoing compliance of ground-mount commercial solar projects.
• Challenges in the supported living sector related to RP governance and financial viability.

Mitigation Strategies

• Implemented a capital allocation policy to reduce leverage, return capital to shareholders, and rebalance the portfolio.
• Completed disposals of assets (Blackcraig wind farm, rooftop solar assets, onshore wind farms).
• Completed grid upgrade works at anaerobic digestion projects.
• Filed a claim in connection with losses incurred due to ROC revocations.
• Collaborated with RPs in the supported living sector to improve their financial position and governance.

Supply Chain Management

Responsible Procurement

• ESG considerations integrated into investment decisions.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, storms, heat stress, water stress)
• Wildfires

Transition Risks

• Changes in government policy (Electricity Generator Levy, MEES)
• Technological changes
• Market changes
• Reputational risks

Opportunities

• Increased demand for renewable energy
• Optimization, expansion, and life extension opportunities for portfolio assets

Reporting Standards

Frameworks Used: AIC Code, TCFD (partially), GRI (implied), UN SDGs

Certifications: B Corp, GRESB (Blackcraig Wind Farm)

Third-party Assurance: Aardvark (limited assurance on carbon emissions)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

Investments in renewable energy, social housing, and PPP/PFI projects contribute to these goals.

Sustainable Products & Innovation

• SolarCatcher initiative

Awards & Recognition

• LSE Green Economy Mark (2020)
• B Corp certification (Investment Adviser)