Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change

Climate Goals & Targets

Environmental Challenges

• Climate change and its potential impact on global economic and financial market outlook.

Mitigation Strategies

• Businesses and individuals can help mitigate climate change through various actions such as investing in carbon-reducing innovation, carbon capture, and reforestation.
• Government actions such as mandating the ending of the sale of internal combustion engine autos, the use of green taxes, and limiting the supply of carbon permits.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Droughts

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Infrastructure projects
• Renewable energy
• Carbon capture technologies

Sustainable Products & Innovation

• Electric cars
• Electric planes
• Renewable energy technologies
• Carbon capture technologies

Environmental Metrics

ESG Focus Areas

• Fostering a culture where diverse people and ideas thrive
• Making responsible investments that align with the long-term interests of our clients
• Ensuring sustainable operations and strong governance

Environmental Achievements

• Completed construction on new global headquarters in Atlanta aiming for LEED and WELL Platinum certifications (achieved WELL Health & Safety and WELL Equity rating)
• 76% of occupied properties have ISO 14001 certification
• 43% reduction in Scope 1 and 2 (location-based) emissions since 2019
• 50% energy use reduction since 2019
• 62% water withdrawal and discharge reduction since 2019
• 52% waste reduction since 2019

Social Achievements

• 37% women in senior management
• 55% of 2022 U.S.-based hires were people of color
• 12 employee-led BRGs
• 36% Board diversity in terms of gender and race
• Enhanced flexible working model introduced
• Supported 128 nonprofits globally
• Launched Manage Your Career Like a Business program globally

Governance Achievements

• Formalized supplier diversity efforts through an inclusive procurement process
• Improved governance over policies by addressing gaps and timeliness of policy reviews
• Refined policies, including Code of Ethics and global policies surrounding incident management
• 99.8% employees completed ethics trainings

Climate Goals & Targets

Environmental Challenges

• Increased Scope 1, 2, and 3 emissions in 2022 due to travel returning to pre-pandemic levels and the purchase of goods and services associated with the new headquarters in Atlanta.

Mitigation Strategies

• Development of a global decarbonization strategy for corporate properties, including audits of higher-emission locations and increased use of renewable energy and green leasing.

Supply Chain Management

Responsible Procurement

• Inclusive procurement process providing fair and equal opportunity for diverse suppliers
• ESG matters as a specific selection criterion in vendor selection process

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001

UN Sustainable Development Goals

• 3
• 4
• 5
• 13
• 15

Invesco has mapped these SDGs to its CR initiatives; further alignment planned as CR goals develop.

Awards & Recognition

• STAR award from the Investment Management Education Alliance for How Not to Suck at Money
• Best Places to Work for LGBTQ+ Equality by the Human Rights Campaign
• Best for Working Parents Award in EMEA by Management Today
• 100% score on Human Rights Campaign’s Corporate Equality Index
• Invesco India recognized as a Top Employer by the India Workplace Equality Index
• Avtar & Seramount 100 Best Hall of Fame—Best Companies for Women

Environmental Metrics

ESG Focus Areas

• Sustainability Risks (Environmental, Social, and Governance)

Climate Goals & Targets

Environmental Challenges

• Integrating Sustainability Risks into investment decisions across diverse asset classes and strategies.

Mitigation Strategies

• Establishing a three-pillar approach: focus on financially material risks, research basis, and systematic approach; implementing varied processes across different investment strategies (discretionary, quantitative, multi-asset, real assets, ETFs, funds of funds).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SFDR (Sustainable Finance Disclosure Regulation)

Environmental Metrics

ESG Focus Areas

• Sustainable investment and trading strategies
• Climate change
• Environmental sustainability

Climate Goals & Targets

Environmental Challenges

• Geopolitical tensions
• Protectionist policies
• Climate change
• Economic slowdown in China
• Geo-economic fragmentation
• Lack of infrastructure in some regions
• Slow progress in implementing trade agreements (e.g., AfCFTA)
• Lack of political will in some countries
• Demographic shifts in some emerging markets
• Potential job displacement due to automation and AI

Mitigation Strategies

• Establishing free trade agreements (FTAs)
• Developing robust digital and physical infrastructure
• Leveraging expanding consumer markets
• Managing demographic trends with appropriate policies
• Adopting sustainable investment and trading strategies
• Intra-regional cooperation among emerging markets
• Implementing complementary domestic reforms
• Investing in green infrastructure
• Adopting enabling technologies (e.g., blockchain, AI)
• Investing in skills development

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Investment in green infrastructure

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved an A+ rating in 2020 for overall approach to responsible investment (Strategy and Governance) for the fourth consecutive year.
• Over 2,000 ESG engagements in 2020.
• Active participation in Climate Action 100+ and Investor Mining and Tailings Safety Initiative.

Social Achievements

• Invesco manages more than US$34.5bn in dedicated sustainable investing strategies.
• Commitment to improving diversity at all levels and in all functions across its global business.
• Highly inclusive culture that reflects the broad diversity of thought across the organization.
• Support for organizations in local communities through charitable contributions and volunteering.

Governance Achievements

• Developed engagement policies and stewardship codes in line with applicable laws and regulations including the UK Stewardship Code, EFAMA Stewardship Code and SRD II.
• Voted proxies on 2,807 significant proposals for 323 shareholder meetings.
• Voted 25.87% of votes against management and 74.13% in support of management.

Climate Goals & Targets

Environmental Challenges

• Managing conflicts of interest in proxy voting.
• Balancing securities lending with voting rights.
• Ensuring effective engagement with companies on ESG issues.

Mitigation Strategies

• Implementation of conflicts registers, processes, detailed conflicts assessments, training, and governance arrangements.
• Procedures to recall securities on loan prior to meeting record dates when voting benefits outweigh lending benefits.
• Prioritization of ESG risk factors and key issue relevance per internal and external resources, and escalation strategies (further engagement, collaboration with shareholders, service provider engagement, reducing investment, divesting).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: PRI, UK Stewardship Code, EFAMA Stewardship Code, SRD II

Awards & Recognition

• A+ rating in 2020 for overall approach to responsible investment (Strategy and Governance) for the fourth consecutive year