Dalmore Capital Limited
Climate Impact & Sustainability Data (2021-04 to 2022-03)
Reporting Period: 2021-04 to 2022-03
Environmental Metrics
Total Carbon Emissions:118,237 tCO2e/year (Dalmore Capital Fund 3)
Scope 1 Emissions:109,343 tCO2e/year (Dalmore Capital Fund 3)
Scope 2 Emissions:8,894 tCO2e/year (Dalmore Capital Fund 3)
ESG Focus Areas
- Environmental Impact
- Climate Risk
- Health & Well-being
- Diversity & Inclusion
- Community
- Business Conduct
- Governance
- Cybersecurity
- Energy Use
Environmental Achievements
- Tideway reused 85% of spoil material from tunnel excavation, reducing lorry movements by 90% and creating a 110-hectare habitat.
- Porterbrook's HybridFLEX train is estimated to deliver a carbon saving of c.700k tonnes of CO2e by 2040.
- Newcastle Schools project secured £5m in funding for decarbonisation measures, resulting in a total CO2e reduction of 60.73 t/CO2e per year and 7,044 t/CO2e across the asset lifetime.
Social Achievements
- Dorenell Wind Farm Community benefit fund provided grants totaling £853,134 to local communities.
- Colchester Garrison planted 16 purple birches as part of the Queen's Green Canopy initiative.
- Dalmore employees participated in fundraising events for Mental Health UK and The Conservation Volunteers, raising £47,956.
Governance Achievements
- Appointed Vanessa Warnock as ESG Director in May 2022.
- Dalmore Capital Fund 4 made its first acquisition: a stake in Porterbrook.
- Established subsidiary company, Resolis, to manage a large proportion of PPP assets.
Climate Goals & Targets
Long-term Goals:
- Achieve net zero emissions.
Medium-term Goals:
- Publish a standalone TCFD report in 2023.
- Develop net zero targets across sectors.
Short-term Goals:
- Engage with portfolio companies to quantify implications of identified climate risks and develop a roadmap for climate resilience.
Environmental Challenges
- Difficulty in quantifying financed emissions due to reliance on data provided by portfolio companies.
- Complexity of reducing energy use and carbon in established infrastructure with long-term contracts.
- Challenges in decarbonising public sector buildings due to multiple stakeholders and public sector buy-in.
Mitigation Strategies
- Developing a roadmap for climate resilience and engaging with portfolio companies to quantify the implications of identified risks.
- Working with portfolio companies and other investors to develop a mutually agreed carbon reduction plan.
- Deepening understanding of energy efficiency and climate risk at portfolio company level and finding high-impact strategies to support transition to energy-efficient and low-carbon solutions.
Supply Chain Management
Responsible Procurement
- Use of high-efficiency equipment in procurement and office refurbishment.
Climate-Related Risks & Opportunities
Physical Risks
- Coastal erosion
- Floods
- Drought
Transition Risks
- Policy changes
- Legal changes
- Market shifts
- Technological changes
Opportunities
- Investments in energy transition infrastructure
- Improved availability of low-carbon energy sources
- Innovation in public services reducing climate impacts
- Resource efficiency improvements
Reporting Standards
Frameworks Used: TCFD, UNPRI, GRESB, SASB, SFDR, EU Taxonomy
UN Sustainable Development Goals
- 3
- 4
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 15
Appendix 1 details Dalmore's initial assessment of positive and negative contributions to material SDGs.
Sustainable Products & Innovation
- HybridFLEX train
- FLEX units
Awards & Recognition
- FLEX won the Environment and Sustainability award in the Modern Railways’ Innovation Awards.