SEDCO Capital IPO Fund
Climate Impact & Sustainability Data (2022, 2024)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:83 thousand tons CO2e (portfolio total)
Carbon Intensity:195 tons CO2e/$M revenue (portfolio weighted average)
ESG Focus Areas
- Climate Change
- Responsible Investment
Environmental Achievements
- Launched SC Global Sustainable Equities Fund investing in companies deriving revenue from environmental products/services in energy efficiency, renewable energy, water, waste, and sustainable food & agriculture markets.
- Launched SC LO Global ESG Equities Fund investing in companies with stronger ESG performance and low carbon footprint.
Governance Achievements
- Established a Risk and Compliance Committee (RCC) overseeing climate risk management and responsible investment policies.
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Improve portfolio ESG scores focusing on material ESG aspects.
- Increase exposure to companies with lower sustainability and carbon-related risks.
Short-term Goals:
- Reduce portfolio exposure to sustainability risks and negative sensitivities to physical climate risks.
- Evaluate climate transition risks for potential late and adverse policy responses.
- Reduce portfolio exposure to high carbon emission sectors.
Environmental Challenges
- Data gaps in public and private company emissions data.
- Managing climate transition and physical risks across diversified multi-asset class portfolios.
Mitigation Strategies
- Developing tools for listed equities carbon metrics calculation.
- Utilizing scenario analysis and stress testing to evaluate portfolio sensitivities to climate factors.
- Engaging indirectly through external investment managers and service providers on climate-related issues.
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Changes in precipitation patterns
- Rising mean temperatures
- Rising sea levels
Transition Risks
- Increased pricing of GHG emissions
- Increased operating costs
- Enhanced emissions-reporting obligations
- Mandates on and regulation of existing products and services
- Substitution of existing products and services with lower emission options
- Research and development (R&D) expenditures in new technologies
- Changing customer behavior
- Uncertainty in market signals
- Increased cost of raw materials
- Abrupt and unexpected shifts in energy costs
- Re-pricing of assets
Opportunities
- Investment opportunities arising from the transition to a more sustainable economy
- Capital expenditure for carbon emission reductions
- Investments in technologies for the green transition (emission reduction, resource preservation, alternative energy)
Reporting Standards
Frameworks Used: TCFD
Reporting Period: 2024
Environmental Metrics
ESG Focus Areas
- Shariah Compliance
Climate Goals & Targets
Environmental Challenges
- Risks of Compliance with Shariah Guidelines and Controls
- Potential Conflict of Interest Risks
- Environmental, Social, and Governance (ESG) Risks, Particularly Climate Risks
Mitigation Strategies
- The Fund’s Investments must follow Shariah Guidelines and Controls
- The Fund Manager seeks to exert its utmost efforts to resolve any conflict of interest
- Integrating environmental, social, and governance (ESG) risks into the investment decision-making process