Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance (ESG)

Social Achievements

• Over 50% of our employees are women, and with an executive team that is 50% women and 25% minority, we believe we have created an environment in which all team members can be successful and supported.

Climate Goals & Targets

Environmental Challenges

• Increased competition could reduce the demand for our products and services
• Higher insurance premiums and increased insurance coverage risks could increase our costs and reduce our profitability
• We are subject to regulatory and governmental inquiries and civil litigation
• Our business is extensively regulated, which increases our costs of doing business, and our failure to comply with regulatory requirements may harm our financial condition
• Changes to U.S. or state tax laws, our failure to adequately comply with U.S. or state tax laws, or the outcome of any audits or regulatory disputes with respect to our compliance with U.S. or state tax laws could adversely affect us
• Our investment advisory agreements require us to adhere to the investment policies and strategies of the Hennessy Funds; any failure to comply with such requirements could result in claims, losses, or regulatory sanctions
• We may need to raise additional capital to fund new business initiatives, and resources may not be available to us in sufficient amounts or on acceptable terms, which could have an adverse impact on our business
• Failure to establish adequate controls and risk management policies, as well as circumvention of established controls and policies by employees, could harm us by impairing our ability to attract and retain investors in the Hennessy Funds and by subjecting us to significant legal liability, regulatory scrutiny, and reputational harm
• The historical performance of the Hennessy Funds should not be considered indicative of the future results of the Hennessy Funds or of any returns expected on our common stock
• We derive a substantial portion of our revenues from a limited number of the Hennessy Funds
• We pursue strategic asset purchases as part of our regular business strategy, and such acquisitions involve inherent risks that could adversely affect our operating results and financial condition and potentially dilute the holdings of current shareholders
• Changes in the distribution channels on which we depend could reduce our net revenues and hinder our growth
• We depend on key personnel to manage our business, and the loss of any key person’s services, combined with our inability to identify and retain a suitable replacement for such person, could materially adversely affect us
• We utilize a unitary fee structure for the Hennessy Stance ESG ETF, and we bear the risk that the Fund’s operating expenses may increase and lead to a reduction in our revenues from the fund
• We utilize unaffiliated sub-advisors to manage the portfolio composition of certain of the Hennessy Funds, and any matters that have an adverse impact on their businesses or any change in our relationships with our sub-advisors could lead to a reduction in assets under management, which would adversely affect our revenues
• We depend on information technology, and any failures of or damage to, attack on or unauthorized access to our information technology systems or facilities, or those of third parties with which we do business, including as a result of cyber attacks, could result in significant limits on our ability to conduct our operations and activities, costs, and reputational damage
• We may be required to forego all or a portion of our fees under our investment advisory agreements with the Hennessy Funds
• Our investment advisory and shareholder servicing agreements can be terminated on short notice, are not freely assignable, and must be renewed annually; the loss of such agreements would reduce our revenues
• The Hennessy Japan Fund and the Hennessy Japan Small Cap Fund invest in the Japanese stock market in yen, which involves foreign exchange and economic uncertainties
• We utilize quantitative investment strategies for some of the Hennessy Funds that require us to invest in specific portfolios of securities and hold these positions for a specified period of time regardless of performance
• Management contracts purchased by us are currently classified as an indefinite-life asset subject to impairment analysis
• We have debt and may incur additional debt, which may increase the risk of investing in us and may harm our financial condition and results of operations
• Ownership of a large percentage of our common stock is concentrated with a small number of shareholders, which could increase the volatility in our stock trading and significantly affect our share price and causes us to experience limited trading volume in our securities
• Certain provisions in our employment agreements and bonus agreements with key personnel could delay or discourage an acquisition of the Company

Mitigation Strategies

• We seek to mitigate these risks through, among other things, due diligence and indemnification provisions
• We have implemented controls and risk management policies to monitor and manage risks
• We have implemented policies and controls to prevent and address potential data breaches, inadvertent disclosures, increasingly sophisticated cyberattacks, and cyber-related fraud
• We continually review our capital requirements to ensure that we have funding available to support our business model

Supply Chain Management

Climate-Related Risks & Opportunities