Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Environment
• Social
• Governance

Environmental Achievements

• Reduced building energy intensity by 1,445 kWh/FTE to 849 kWh/FTE (2021 to 2022)
• Reduced greenhouse gas intensity by 302 kgCO₂e/FTE to 162 kgCO₂e/FTE (2021 to 2022)
• Installed LED lights throughout all floors, with 98% of old lighting recycled.
• New refractive blinds are being installed which reduce heat loss in winter and keep the building cooler in summer.
• Beneficial cooling is in place in the building which saves on excess cooling times.
• Virtual corridor lighting has been installed saving energy from light use.

Social Achievements

• Committed to attracting, retaining and developing employees, including those with disabilities.
• Promotes a collaborative and inclusive work environment that encourages diversity, growth and development.

Governance Achievements

• Maintains a three-lines-of-defence risk management model ensuring best practice.
• Risk management, compliance and legal teams are essential elements to the business.

Climate Goals & Targets

Environmental Challenges

• Geopolitical instability (Russia's invasion of Ukraine) causing commodity price increases, inflation, and higher interest rates.
• Decline in asset valuations leading to a reduction in revenue.

Mitigation Strategies

• Diversified investment portfolio across multiple asset classes and geographies to offset declines in NAVs (e.g., investing in real assets including wind turbines).
• Sufficient cash flows to support price rises in the short-term.
• Monitoring Bank of England forecasts and monetary policy tightening.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SECR

Third-party Assurance: Verco Advisory Services

Environmental Metrics

ESG Focus Areas

• Responsible Investing
• Corporate Sustainability
• Diversity, Equity & Inclusion

Environmental Achievements

• Measured second year of operational emissions (2,079 tCO2e - scope 1, 2 and 3 emissions)

Social Achievements

• Certified as a Great Place to Work for the 4th consecutive year (2023 employee turnover rate: 2.6%)
• Launched Churchill’s first Sustainable Finance Disclosure Regulation (SFDR) Article 8 Registered Funds for two marquee strategies
• Diverse Managers Program: 85% of initial allocation committed to 12 general partners across 13 funds with >51% owned by women and people of color.
• Launched inaugural mentorship program

Governance Achievements

• Developed new proprietary ESG rating tool using ESG Book
• Joined the Thirty Percent Coalition
• Zero cyber breaches in 2023
• Enhanced compliance program by hiring Chief Compliance Officer

Climate Goals & Targets

Environmental Challenges

• Limited ESG data in private markets
• Balancing ESG considerations with financial returns

Mitigation Strategies

• Developed proprietary ESG rating tool combining quantitative scoring with qualitative research
• Partnered with The Upright Project to supplement ESG data
• Advocating for increased transparency in private markets through ESG IDP
• Narrowly tailored engagement focusing on incremental improvements

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, UN Global Compact, TCFD, SFDR

Certifications: Great Place to Work

Environmental Metrics

ESG Focus Areas

• Energy Transition

Climate Goals & Targets

Environmental Challenges

• Slow pace of energy transition compared to Paris Agreement goals
• Bottlenecks in various aspects of the energy transition (e.g., carbon pricing, EV infrastructure, cost of capital in emerging markets, forest cover loss)
• High upfront costs of constructing and connecting direct-current fast charger stations
• Lack of widespread and effective policies to protect and restore carbon sinks
• Challenges in capture efficiency and storage reliability of CCUS technologies
• Cost overruns, execution risks and supply chain issues in nuclear power technologies

Mitigation Strategies

• Government support and technology innovations to improve EV infrastructure economics
• Blended finance mechanisms to reduce cost of capital and enhance investor confidence in emerging markets
• Government policies and incentives to stimulate private sector investment in clean energy
• Policies to protect carbon sinks (e.g., Brazil's commitment to preserve the Amazon, EU's European Deforestation Regulation)
• Capital deployment, subsidies, industry coordination and customer willingness to pay for low-carbon products to support CCUS growth

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• More frequent and destructive climate events
• Real estate risk
• Supply chain disruptions
• Systemic inflationary pressures

Transition Risks

• Swings in commodity demand
• Shifting trade dynamics
• Regulatory or market pressures on companies failing to meet net-zero targets

Opportunities

• Investments in adaptation and resilience
• Nature-positive strategies
• Clean energy production, storage and transmission