Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Increased GHG disclosure rates from 2010 to 2020 (Scope 1: 174%, Scope 2: 163%)
• Growth in firm commitments to carbon reduction targets

Climate Goals & Targets

Environmental Challenges

• Majority of firms are not decarbonizing sufficiently to meet committed emission reduction targets
• Ambiguity and lack of standardization in climate-related communications
• Potential for greenwashing

Mitigation Strategies

• Advocating for standardized, comparable metrics of climate-related risks (TCFD framework)
• Analyzing the valuation implications of different forms of climate communication to understand investor perception

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires, storms, heatwaves, droughts, sea level rises

Transition Risks

• Regulatory changes, social norms, technological progress, customer preferences, capital markets shifts

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Inclusion, diversity, equity, and allyship
• Talent development
• Employee engagement
• Community volunteering and philanthropy
• ESG integration framework
• Research insights
• Purposeful engagement
• ESG valuation and capital access
• Values, principles and standards
• Compliance protocols
• Risk management
• Information security
• Training and education
• Board oversight and independence
• Leadership and expertise
• Performance-based compensation
• Stakeholder engagement
• Environmental and climate policies
• GHG reporting
• Resource preservation
• Eco-friendly workplace initiatives
• Carbon reduction

Environmental Achievements

• Launched Lazard Climate Center to provide insights into the financial effects of climate change and energy transition.
• Lazard Asset Management became a signatory to the Net Zero Asset Managers Initiative, supporting the goal of net-zero greenhouse gas emissions by 2050 or sooner.
• 100% renewable electricity in the U.K. since 2019
• Lazard Asset Management London offset CO2 emissions by planting 7,200 trees in the U.K.
• Lazard Fund Managers’ office in Dublin transitioned to 100% green energy

Social Achievements

• Continued focus on increasing diversity across all levels of the firm.
• Launched Lazard New Visions Academy in partnership with New Visions for Public Schools, providing post-secondary readiness opportunities to students from under-resourced communities.
• Enhanced matching gift program to support non-profit organizations providing relief in Ukraine.
• Global Work for Good (WFG) program provides employees paid time-off to volunteer.
• Launched Lazard Cares, allowing employees to allocate one business day per year to volunteer.

Governance Achievements

• Updated and expanded policies in the Code of Business Conduct and Ethics.
• Established a Sustainability Committee consisting of senior leaders across the Financial Advisory business.
• Introduced Pathways, a new performance and development framework.
• Welcomed five new Board members in the last six years.

Climate Goals & Targets

Environmental Challenges

• Enduring disruption from the pandemic.
• Effects of climate change and changing regulatory forces.

Mitigation Strategies

• Developed a hybrid work model.
• Incorporated ESG considerations into investment research and analysis.
• Launched Lazard Climate Center to address knowledge gaps and serve as a partner to companies navigating the energy transition.
• Developed proprietary tools to measure, track, and report on carbon emissions of relevant portfolios.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, TCFD, PRI, UN Global Compact, UK Stewardship Code, Japan Stewardship Code, Korean Stewardship Code, UK Women in Finance Charter

Awards & Recognition

• Planet Mark Awards Absolute Carbon Reduction finalist (UK)

Environmental Metrics

ESG Focus Areas

• Diversity
• Employee Engagement
• Sustainable Investing
• Climate Change
• Energy Transition
• Responsible Business
• Governance
• Community Investment
• Environmental Sustainability

Environmental Achievements

• 100% renewable electricity in the U.K. since 2019
• Lazard Asset Management London offset CO2 emissions by planting 7,200 trees in the U.K.
• Lazard Fund Managers’ office in Dublin transitioned to 100% green energy
• 54% reduction in paper use in Tokyo since 2019
• 65% reduction in paper use in London since 2019
• 76% office space in energy-efficient buildings

Social Achievements

• Hosted the second year of the Lazard New Visions Academy, providing approximately 300 NYC public high school students with professional development opportunities.
• Lazard Green teams participated in cleanup projects in London, New York, and Tokyo.
• Lazard Paris sponsored the Women’s Forum Rising Talents Initiative.
• 73% global employee engagement response rate

Governance Achievements

• Established a Business Integrity Reporting System.
• Implemented a Code of Business Conduct and Ethics.
• Enhanced matching gift program for U.S. employees donating to eligible charities.

Climate Goals & Targets

Environmental Challenges

• Data limitations and inconsistencies in portfolio decarbonization methodologies.
• Varying levels of data disclosure and quality across companies and regions.

Mitigation Strategies

• Continuous innovation to incorporate concepts like ‘fair share’ reductions.
• Focus on real-world emissions reductions with an engagement-first approach.
• Utilizing proprietary tools and deep industry experience to identify climate-related risks and opportunities.

Supply Chain Management

Responsible Procurement

• Sustainable pantry items in New York office
• Use of FSC-ECOLABEL-PEFC certified paper in Milan and Paris

Climate-Related Risks & Opportunities

Opportunities

• Energy transition investments

Reporting Standards

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

Certifications: Planet Mark Certification

Awards & Recognition

• Grand Prix de la Philanthropie 2022

Environmental Metrics

ESG Focus Areas

• People and Culture
• Sustainable Investing
• Sustainable Financial Advisory
• Business Ethics
• Corporate Governance
• Environmental Sustainability

Environmental Achievements

• 100% renewable electricity in the U.K. since 2019
• Lazard Asset Management London offset CO2 emissions by planting 7,200 trees in the U.K.
• Lazard Fund Managers’ office in Dublin transitioned to 100% green energy
• Paris office achieved significant energy efficiency reductions (74% reduction in energy use compared to 2019)

Social Achievements

• Global employee engagement survey with a 73% response rate
• Hosted 25 global town halls and 150 employee resource group events
• Supported the Women’s Forum Rising Talents initiative for the sixth consecutive year
• Various community investment initiatives globally (e.g., Lazard New Visions Academy, partnerships with SEO London and Women in Africa’s Young Leaders program)
• 7.9M donated since the Foundation’s launch in 2019

Governance Achievements

• Strong corporate governance practices, including a diverse and international Board of Directors
• Implementation of a performance-based culture with equity alignment and clawback policy
• Robust stock ownership guidelines and anti-hedging policy
• Annual compliance training for employees
• Global 24/7 Business Integrity Reporting System

Climate Goals & Targets

Environmental Challenges

• Navigating transformative change in the financial markets (geopolitical tensions, sector-specific volatility, high interest rates)
• Reducing environmental footprint from energy usage and business travel

Mitigation Strategies

• Integrating financially material human capital, natural capital, and governance considerations into investment strategies
• Implementing energy efficiency measures in offices
• Utilizing a coordinated hybrid work model
• Investing in renewable energy sources
• Offsetting carbon emissions through tree planting

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: SASB, TCFD, PRI, UN Global Compact, UK Women in Finance Charter

Certifications: Planet Mark Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Platts Global Energy Awards Deal of the Year – Financial

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy

Environmental Achievements

• Significant historical cost declines for utility-scale renewable energy generation technologies (Onshore Wind 65%, Solar PV 83% since 2009)

Climate Goals & Targets

Environmental Challenges

• High interest rates
• Supply chain pressures
• Demand growth
• Grid constraints
• Uncertainty around IRA implementation for hydrogen projects
• Hourly matching requirements for green hydrogen production
• Safety concerns for lithium-ion batteries
• Lack of clarity on domestic content adder for energy storage
• Potential increase of Section 301 import tariffs on lithium-ion batteries

Mitigation Strategies

• Continuous innovation across technology, capital formation and policy
• Continued maturation of selected technologies (CCUS, long duration energy storage, new nuclear technologies)
• Complementation of new renewable energy technologies with firming resources (energy storage or dispatchable generation)
• Progressing non-lithium-based energy storage technology solutions
• Development of stronger incentives for long duration storage projects

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products