Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency

Environmental Achievements

• Reduced carbon footprint by 2% in 2019, with total emissions down to 2,043 tCO2e.
• Met the legal requirements of ESOS phase 2.
• Rolling replacement of LED lighting.
• Review and upgrade of desktop IT to more energy-efficient hardware.
• 38% reduction in market-based electricity emissions compared to the location-based UK grid average for sites with direct electricity supplier contracts.

Social Achievements

• Not disclosed

Governance Achievements

• Continued voluntary disclosure to CDP, receiving a 'B-' rating.

Climate Goals & Targets

Environmental Challenges

• Increased business travel emissions due to headcount growth.
• Constraints in influencing landlord electricity procurement choices at some sites.
• Increased paper consumption.

Mitigation Strategies

• Continued efforts to reduce carbon footprint through energy efficiency initiatives.
• Carbon offsetting program through partnership with ClimateCare.
• Engaging with landlords to encourage renewable energy tariffs.
• Evaluating methods to reduce paper consumption.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: WRI GHG Protocol

Certifications: Null

Third-party Assurance: Carbon Smart

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Efficiency
• Social Impact
• Governance
• Technology Value Chain

Environmental Achievements

• Portfolio estimated to be 79% less carbon intensive than the MSCI World Index (Scope 1 and 2 emissions).

Social Achievements

• Ongoing engagement with companies on ESG issues, particularly responsible sourcing of cobalt.
• Supporting companies' responses to COVID-19, including employee well-being initiatives and community support.

Governance Achievements

• Active voting on shares held, with a focus on gender pay gap disclosure, executive pay, and board member overload.
• Signatory to the UK Stewardship Code and UN Principles for Responsible Investment (UN-PRI).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19.
• Lack of widespread Scope 3 emissions reporting by companies.
• Challenges in tracing cobalt sourcing in the Democratic Republic of Congo.

Mitigation Strategies

• Active engagement with companies to improve supply chain transparency and responsible sourcing.
• Focus on owning high-quality businesses to navigate uncertainty.
• Collaboration with UN-PRI on responsible cobalt sourcing.

Supply Chain Management

Responsible Procurement

• Engagement with companies on responsible sourcing of cobalt.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN SDGs

Environmental Metrics

ESG Focus Areas

• Responsible Investment
• Our People
• Society and Communities
• Environmental Impact

Environmental Achievements

• 7.7% reduction in operational carbon footprint (tCO2e)
• 82.9% of energy consumption from renewable sources

Social Achievements

• 8.1/10 employee engagement score (sector baseline 7.7)
• 66% of critical, strategic, and preferred suppliers completed ESG supplier review
• >55 charities supported through community investment programmes
• Two interns from the 10,000 Black Interns Initiative

Governance Achievements

• ESG measures incorporated into variable pay for group executive committee members from 2022
• Updated risk appetite with regard to level 2 sustainability risk
• 99% of employees completed anti-bribery and anti-corruption training

Climate Goals & Targets

Environmental Challenges

• Cyber threats and supply chain resilience
• Climate change transition risk
• ESG acceleration
• Post-pandemic UK and global economic challenges
• UK specific and global political tensions
• Sector consolidation
• Changing regulatory expectations
• Digital currencies
• Open finance
• Generational wealth change
• Social care financing
• More extreme pandemics

Mitigation Strategies

• Developed a hybrid working model
• Integrated ESG factors into supplier management framework
• Established a net zero working group
• Broadened data collection to include supply chain and investment exposure
• Continued to deliver absolute emissions reductions operationally
• Engaged with regulators on climate risk requirements and diversity and inclusion matters

Supply Chain Management

Supplier Audits: 66% of critical, strategic, and preferred suppliers reviewed

Responsible Procurement

• ESG factors integrated into supplier management framework
• Supplier survey on ESG issues

Climate-Related Risks & Opportunities

Physical Risks

• Direct damage to assets
• Supply chain disruption
• Changes in water availability

Transition Risks

• Policy, legal, technology and market changes
• Shifts in asset values
• Higher costs of doing business

Opportunities

• Development of energy-efficient products and services
• Investment in renewable energy

Reporting Standards

Frameworks Used: UN Global Compact, PRI, TCFD, SBTi

Third-party Assurance: Avieco (for SECR data); EcoAct (for Scope 3 calculations)

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 13: Climate Action

Rathbones' responsible business program aligns with these goals through various initiatives.

Awards & Recognition

• Platinum Giving Award

Environmental Metrics

ESG Focus Areas

• Responsible Investment
• Our People
• Society and Communities
• Environmental Impact

Environmental Achievements

• Near-term environmental targets validated by the Science Based Targets initiative as 1.5oC aligned
• Seven sites using renewable electricity, covering 90% of total consumption
• 15.75% reduction in data center emissions through decommissioning and consolidation practices
• Reduced paper use by 15%
• Offsetting Scope 1 and 2 emissions and scope 3 category 3-8 emissions by purchasing and retiring carbon credits

Social Achievements

• Launched diversity, equality and inclusion plan
• Maintained an employee net promoter score above industry benchmark (39 compared to 22)
• Invested over £795,110 or 1.24% of pre-tax profit in over 80 community projects
• Supported the Disasters Emergency Committee’s Ukraine and Pakistan appeals
• One-off payment to 60% of least well-paid colleagues to support them during the cost-of-living crisis

Governance Achievements

• ESG measures included in variable pay component for group executive committee members
• Responsible business committee oversees responsible business strategy and reporting
• Updated voting policy to reflect changing expectations of management
• PRI score of 72% for the group’s investment and stewardship policy

Climate Goals & Targets

Environmental Challenges

• Increased business travel emissions as colleagues returned to face-to-face meetings
• Waste produced increased by 27.14%
• Data and processes to support the consideration of material ESG factors and sustainability can be flawed

Mitigation Strategies

• Reviewed travel policy to minimize unnecessary travel
• Focus on waste management efforts in London and Liverpool offices
• Thoughtful approach to data and model management to mitigate gaps or inconsistencies in ESG data

Supply Chain Management

Supplier Audits: 69% of in-scope suppliers responded to ESG questionnaire

Responsible Procurement

• ESG criteria included in supplier management framework
• ESG engagement integrated into contract review process

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNGC, PRI, UK Stewardship Code, SBTi, TCFD, CDP

Third-party Assurance: Accenture

UN Sustainable Development Goals

• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Alignment detailed on pages 18-19 of the report

Awards & Recognition

• PRI Stewardship Initiative of the Year Award (Votes Against Slavery project)

Environmental Metrics

ESG Focus Areas

• Responsible Investment
• Governance
• Our People
• Society and Communities
• Environmental Impact

Environmental Achievements

• 19 sites (out of 33) using renewable electricity, covering 65% of total consumption (kWh)
• 28.6% reduction in data centre emissions (from 98 to 70 tCO₂e)
• 58% of clients registered on MyRathbones, avoiding paper communication

Social Achievements

• Launched new inclusion networks
• Employee net promoter score (eNPS) of 37 (sector benchmark of 26)
• 1.38% of pre-tax profit invested in community programmes, supporting 77 charity partners

Governance Achievements

• ESG measures included in variable pay for group executive committee members
• 77% PRI score: governance and strategy
• Three whistleblowing cases independently investigated and resolved

Climate Goals & Targets

Environmental Challenges

• Increase in business travel emissions (154% since 2020)
• Data related to emissions from investments still in development
• Increase in operational footprint due to increased property footprint and employee figures

Mitigation Strategies

• Reviewed travel policy to ensure necessity of booked travel
• Regular engagement with data suppliers to improve data coverage
• Digitising business, switching to renewable energy suppliers, and implementing hybrid working

Supply Chain Management

Supplier Audits: 76% of suppliers reviewed

Responsible Procurement

• Responsible business assessment embedded in procurement process

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNGC, SBTi, TCFD, PRI

Third-party Assurance: Good Business

UN Sustainable Development Goals

• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities
• SDG 13: Climate Action

Alignment detailed on page 35 of the report