Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Investing
• Climate Change
• Cyber Security
• Responsible Investment
• Diversity & Inclusion

Environmental Achievements

• Launched Sustainable Global Equity Fund
• Launched Sustainable US Equity strategy (May 2017)
• Plans for further launches in sustainable investing (Sustainable Real Return and Sustainable Sterling Bond strategies)

Social Achievements

• Improved gender balance on charity trustee boards (33.8% women)
• Launched 'Future Blues' community outreach project to create rowing clubs in state schools
• #PullTogether campaign raised £2.5 million for Cancer Research UK
• Various diversity schemes and training programs in place (vocational placement, unconscious bias training, returning military program, flexible working)

Governance Achievements

• Absorbed external research costs for clients (July 2017)
• Voted at 510 AGMs/EGMs, actively engaging with company management
• Simplified management structure
• Brought in an external Chief Investment Officer

Climate Goals & Targets

Environmental Challenges

• Concerns over China's rapidly rising debt and potential for a 'Minsky Moment'
• Uncertainty surrounding Brexit's impact on investment portfolios
• Cybersecurity risks for companies
• Lack of knowledge about alternative investments among charities

Mitigation Strategies

• Careful assessment of growth outlook and valuation of portfolio companies
• Monitoring Brexit's impact and adapting strategies accordingly
• Integrating climate thinking into investment strategies
• Joining collaborative investment groups (IIGCC, Climate Action 100+)

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Sustainable Products & Innovation

• Sustainable Global Equity Fund
• Sustainable US Equity strategy
• Planned Sustainable Real Return and Sustainable Sterling Bond strategies

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance (ESG) factors
• Ethical investing
• Fossil fuel exclusions
• Sustainable investment
• Diversity on trustee boards

Social Achievements

• Women make up 37% of charity trustee board members.

Climate Goals & Targets

Environmental Challenges

• Lackluster investment returns
• Higher withdrawal rates than sustainable
• Concerns about Brexit's negative impact on portfolios and charitable work
• Tougher legal and regulatory environment increasing costs
• Implementation of GDPR

Mitigation Strategies

• Increased allocation to overseas equities and alternatives
• Continued use of active management strategies
• Review of investment management arrangements
• ESG engagement with companies

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Strategy & Governance
• Listed Equity - Incorporation
• Listed Equity - Screening
• Listed Equity - Integration
• Listed Equity - Active Ownership (Individual, Collaborative, Proxy Voting)
• Fixed Income (SSA, Corporate Financial, Corporate Non-Financial)

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Diversity
• Sustainable strategies

Social Achievements

• Initiated actions, training, and measurements to accelerate Diversity, Equity and Inclusion through the Firm. Made external commitments to diversify its workforce.

Governance Achievements

• Established a robust governance structure with various committees (Remuneration, Nominations, Risk, etc.) to oversee risk management, remuneration, and board diversity.

Climate Goals & Targets

Environmental Challenges

• Reputational risk and operational risk (including fiduciary and regulatory risk)
• Concentration risk (geographic client concentration)
• Group risk (reliance on BNY for certain functions)
• Business risk (market risk exposure of investment products)
• Strategic risk (inadequate strategy)

Mitigation Strategies

• Risk appetite statement with tolerance thresholds
• Monthly spot sell-off (or buy) process of non-sterling currency balances
• Three lines of defense model for risk management
• ICARA process, RCSA process, ORE capture and root cause analysis, and KRIs
• Liquidity policy to maintain adequate liquid resources
• Stress tests to challenge the firm's ability to withstand harms associated with business risks
• Risk appetite metrics to flag impacts on AUM and profitability
• Strong risk frameworks and tolerances to ensure client interests are prioritized
• Errors policy to ensure clients are not disadvantaged by errors

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD