Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Sustainability
• Investment Sustainability
• Societal Sustainability

Environmental Achievements

• Published first ESG policy
• Became a signatory of the UN Global Compact
• Integrated ESG factors into fundamental analysis across all public markets strategies
• Launched first dedicated ESG product, Ashmore SICAV Emerging Markets Total Return ESG Fund
• Appointed first Head of Sustainability and ESG Integration
• Investment Professionals completed UNPRI Academy training

Social Achievements

• Low unplanned staff turnover (9.5%)
• Promotes high standards of health and safety at work
• Operates a zero tolerance policy towards harassment and bullying
• Supports the United Nations Universal Declaration of Human Rights
• Developed a Supplier Code of Conduct
• Engaged a third-party agency for whistle-blowing
• Annual donation to homeless charity Crisis and Alzheimer’s Society

Governance Achievements

• Published first ESG policy
• Integrated ESG factors into investment processes
• Established ESG committee chaired by CEO
• Integrated ESG risk analysis into bottom-up process across all fixed income and equity strategies
• Uses proprietary ESG assessment frameworks aligned to international standards

Climate Goals & Targets

Environmental Challenges

• Limited environmental risks associated with the Group’s activities
• Air travel is the biggest source of carbon emissions
• Data collection challenges across international offices
• Lack of industry-wide standards and approaches to ESG

Mitigation Strategies

• Promotes energy efficiency and waste avoidance
• Uses technology to minimize air travel
• Applied estimation techniques for missing data
• Tailored ESG integration approach to the context of each market
• Uses proprietary ESG assessment frameworks aligned to international standards

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GHG Protocol, UN Global Compact, PRI, IFC Performance Standards

Third-party Assurance: Ricardo Energy & Environment

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Investing
• Societal Impact

Environmental Achievements

• Reduced greenhouse gas emissions by 31.9% compared to the previous year (primarily due to COVID-19 impact on travel and office work)
• CO2 emissions at 61 Aldwych (London) decreased by 22.2%
• Established a carbon offsetting program in collaboration with the Ashmore Foundation to offset operational emissions (Scopes 1-3)

Social Achievements

• Launched Ashmore SICAV Emerging Markets Equity ESG Fund
• Subscribed to Sustainalytics for ESG data
• Published Engagement policy in line with the Shareholders Rights Directive II
• Published Controversial Weapons policy
• Made donations to support health systems in the UK and civil society groups impacted by COVID-19
• Supported various local community projects through employee volunteering and donations

Governance Achievements

• Became a supporter of the Task Force for Climate-related Financial Disclosures (TCFD)
• Published a position paper on climate change
• Signed up to the Climate Action 100+ initiative
• Maintained low levels of unplanned staff turnover (8.6%)
• Implemented policies and procedures to minimize financial crime risks
• Established a clear and accessible whistleblowing process

Climate Goals & Targets

Environmental Challenges

• Limited data availability from international offices for GHG reporting
• Air travel as the largest source of carbon emissions
• Evolving regulatory environment for climate-related disclosures
• Limitations in carbon footprint data for client portfolios and benchmarks

Mitigation Strategies

• Used estimation techniques for missing data in GHG reporting
• Promoted energy efficiency measures in offices
• Reduced air travel due to COVID-19 and increased use of video conferencing
• Committed to adhering to TCFD principles and regulatory requirements
• Assessing the availability and use of carbon footprint data

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD, UNGC, PRI

Certifications: Null

Third-party Assurance: Ricardo Energy & Environment

UN Sustainable Development Goals

• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 8 (Decent Work and Economic Growth)
• Goal 13 (Climate Action)

Investments and social investments through the Ashmore Foundation contributed to these goals

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Investing
• Societal Impact

Environmental Achievements

• Launched a carbon offsetting initiative in collaboration with the Ashmore Foundation to offset operational emissions.
• Reduced global greenhouse emissions by 31.9% compared to the previous year (primarily due to COVID-19 reducing travel and office work).

Social Achievements

• Launched Ashmore SICAV Emerging Markets Equity ESG Fund.
• Donated £250,000 to NHS Charities Together in the UK to support the NHS.
• Matched employee donations to charities supporting COVID-19 relief efforts.
• Provided obsolete computers to Computer Aid International.

Governance Achievements

• Became a supporter of the Task Force for Climate-related Financial Disclosures (TCFD) and committed to implementing its recommendations.
• Published an engagement policy in line with the Shareholders Rights Directive II.
• Published its first controversial weapons policy.
• Published its first position paper on Climate Change.

Climate Goals & Targets

Environmental Challenges

• Limited data availability from international offices for GHG emissions reporting.
• Air travel as a significant source of carbon emissions.
• Evolving regulatory environment for climate-related disclosures.
• Limitations in carbon footprint data for client portfolios and benchmarks.

Mitigation Strategies

• Used estimation techniques for missing data in GHG reporting.
• Minimized air travel through technology and virtual meetings.
• Committed to adhering to TCFD principles and regulator requirements.
• Assessing the availability and use of carbon footprint data for client portfolios and benchmarks.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, UN Global Compact, PRI

Third-party Assurance: Ricardo Energy & Environment

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Investing
• Societal Sustainability

Environmental Achievements

• Overall GHG emissions decreased by 61.7% compared to the previous year (primarily due to the impact of the Covid-19 pandemic)
• Air travel emissions decreased by 94.8% due to Covid-19 restrictions
• Implemented carbon offsetting initiative through The Ashmore Foundation, offsetting operational emissions (Scopes 1-3)

Social Achievements

• Launched two dedicated ESG strategies in external debt and corporate debt
• Expanded Sustainalytics subscription to include carbon intensity metrics for selected portfolios
• Increased the number of stewardship engagements with issuers
• Low unplanned staff turnover (6.6%)
• The Ashmore Foundation dispersed over USD 6.9 million to 71 civil society organizations in 26 Emerging Market countries

Governance Achievements

• Updated Engagement Policy to include sovereign engagements
• Rolled out common ESG scoring framework for sovereign and corporate issuers across all local offices and investment themes
• Made progress in relation to the TCFD recommendations
• Implemented the Sustainable Financial Development Regulation (SFDR)
• Joined the Net Zero Asset Managers Initiative (NZAMI)

Climate Goals & Targets

Environmental Challenges

• Data limitations in collecting consistent information from all international offices regarding GHG emissions, water usage, and waste
• Limited ability to reduce gross GHG emissions due to leased office spaces and available technology

Mitigation Strategies

• Used estimation techniques to account for missing data
• Apportioned total consumption based on floor area occupied by Ashmore Group where sub-metered data was unavailable
• Estimated missing water data using an average consumption figure
• Achieving net zero carbon status for operational emissions through carbon offsetting via The Ashmore Foundation

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, UNGC, UNPRI, SECR

UN Sustainable Development Goals

• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)

Investments and social investments through The Ashmore Foundation have contributed to the achievement of these SDGs

Environmental Metrics

ESG Focus Areas

• Sustainability
• ESG

Social Achievements

• Launched its first ESG public fund

Governance Achievements

• Continued to implement its distinctive team-based culture
• Maintained Good Corporate Governance and effective risk management

Climate Goals & Targets

Environmental Challenges

• Regulatory restriction in the insurance industry
• Rising demand of ESG factor yet fully available resources
• Dynamic nature of digital economy
• Declining liquidity globally
• Indonesia’s asset price experienced pressure from global policy particularly in the debt theme

Mitigation Strategies

• Active management philosophy is an important skills to find opportunity and create value for clients and shareholders
• Strong cost management
• Continued to evolve its approach to sustainability that is aligned with Indonesia sustainable economic plan

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• first ESG public fund
• Shariah-based discretionary fund

Awards & Recognition

• Best Equity Mutual Fund for asset between Rp100 – 500 billion for 3 year period for Ashmore Saham Unggulan Nusantara
• Best Fixed Income Mutual Fund for USD denominated bond for 3 year period for Ashmore Dana USD Nusantara
• Best Fixed Income Mutual fund for USD denominated bond for 5 year period for Ashmore Dana USD Nusantara

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Investment
• Social Impact

Environmental Achievements

• Offsetting substantially all of Ashmore’s scope 1, 2 and 3 emissions for FY2020/21 through a partnership with the IDEP Foundation in Indonesia.
• Continued efforts to offset GHG emissions through projects overseen by The Ashmore Foundation.

Social Achievements

• Introduced flexible working for employees.
• Launched an expanded graduate recruitment scheme in the UK.
• The Ashmore Foundation provided social impact grants to charitable organisations working in Emerging Markets, Covid-19 related grants and emergency relief donations in response to the humanitarian crisis in Ukraine (£0.6 million).

Governance Achievements

• Improved or maintained ESG ratings from MSCI and Sustainalytics.
• Enhanced climate-related disclosures in accordance with TCFD recommendations and FCA listing rules.
• Joined the Net Zero Asset Managers Initiative (NZAMI).

Climate Goals & Targets

Environmental Challenges

• Increase in GHG emissions compared to the previous year due to the return of business travel and office use.
• Limited direct exposure to material operational climate-related risks.

Mitigation Strategies

• Commitment to offsetting emissions through The Ashmore Foundation.
• Ongoing examination of climate-related scenario analysis to augment the Board’s review and challenge of Ashmore’s strategy.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Transition Risks

• Evolving regulatory environment

Opportunities

• Need for capital to flow to Emerging Markets to fund the low-carbon transition

Reporting Standards

Frameworks Used: TCFD, UNGC, UN PRI

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Sustainability
• Social Sustainability
• Governance

Environmental Achievements

• Ashmore Group achieved a total carbon offset of 654 tons CO2e, a 188.1% increase compared to the previous period.
• Initiated waste reduction and prioritized the use of sustainably sourced paper. Transitioned to sustainable paper for company envelopes and reduced waste.

Social Achievements

• Increased proportion of female employees to 53.1% from 48.4% in the previous period.
• Increased total employee training hours to 144.9 hours, a 128.5% increase compared to the previous period.
• Empowered communities below the poverty line through Ashmore Foundation grants to Lend a Hand (India) and World Bicycle Relief (Colombia).

Governance Achievements

• Implemented TCFD guidelines in assessing business activities and disclosures.
• Applied minimum ESG scoring criteria for ESG products; issuers failing to meet minimum scores are excluded from the portfolio.
• Established a whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Gap in internal understanding and competencies in implementing sustainability concepts.
• Evolving government regulations and policies on green investment taxonomy.
• Regulatory challenges resulting in a 11% decline in average AuM, leading to decreased revenue and net profit.

Mitigation Strategies

• Continuous promotion of competency development efforts to enhance sustainability awareness.
• Benchmarking against best practices within similar industries.
• ESG scoring as part of risk management and increased engagement with investee companies.
• Collaboration with selling agent partners, especially those with digital distribution platforms.

Supply Chain Management

Responsible Procurement

• Prioritizing environmentally friendly materials for office equipment and supplies.

Climate-Related Risks & Opportunities

Transition Risks

• Developing environmental regulations

Opportunities

• Investment solutions responding to changing regulations and demands

Reporting Standards

Frameworks Used: POJK No. 51/POJK.03/2017, TCFD

UN Sustainable Development Goals

• SDG 8: Decent Work and Economic Growth
• SDG 11: Sustainable Cities and Communities
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action

Ashmore's strategies and initiatives contribute to these SDGs through sustainable economic growth, responsible investment, community development, and climate action.

Sustainable Products & Innovation

• Sharia-compliant mutual fund product
• Several new discretionary funds

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Investing

Environmental Achievements

• Offset FY2022 CO2e through The Ashmore Foundation’s partnership with Plant Your Future, reforesting parts of the Peruvian Amazon.

Social Achievements

• Launched graduate recruitment programme in FY2022.
• Took part in the 10,000 Black Interns programme for the first time in 2023.
• Implemented a menstrual and menopause policy.
• Enhanced employee development and further education, family-friendly benefits and employee retention programs.
• The Ashmore Foundation made over US$350,000 of grants focused on promoting social and economic opportunities for women and young people.

Governance Achievements

• Established a Diversity Committee.
• Improved gender and ethnic diversity on the Board.
• Complied with the recommendations of the Parker Review and FTSE Women Leaders Review.
• Implemented the provisions of the UK Consumer Duty regulations.

Climate Goals & Targets

Environmental Challenges

• Risk aversion by some investors resulted in an adjustment to allocations to Emerging Markets.
• Global macroeconomic concerns such as policy tightening by developed world central banks and geopolitical tension.
• Headwinds in China due to lower consumer confidence and demand following the reopening of its economy.
• Evolving climate-related regulation and industry developments.

Mitigation Strategies

• Diversification of investment capabilities and products.
• Strong balance sheet with no debt.
• Focus on converting strong equities investment performance to client flows.
• Growth in intermediary retail assets as risk appetite increases.
• Development of local asset management platforms in Emerging Markets.
• Effective cost management.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Weather events
• Flooding
• Higher temperatures

Transition Risks

• Evolving regulatory landscape
• Changes in consumer preferences
• Market-wide climate-related shocks

Opportunities

• Product development
• Increased capital allocations to Emerging Markets

Reporting Standards

Frameworks Used: TCFD, UN PRI, NZAMI

Environmental Metrics

ESG Focus Areas

• Climate change
• Deforestation
• Energy transition
• Inequality and wealth disparity
• Responsible investment

Environmental Achievements

• Partnership with Plant Your Future to mitigate Scope 1, 2, and 3 operational emissions for FY2023 through reforestation in the Peruvian Amazon.
• Offset of 654 tCO2e in FY2023

Social Achievements

• The Ashmore Foundation made strategic social impact grants to charitable organisations working in Emerging Markets.
• Low levels of unplanned staff turnover (FY2024: 7%).
• Support for Breaking Barriers, a refugee employment charity.

Governance Achievements

• Maintained AA ESG rating from MSCI and Sustainalytics.
• Enhanced climate-related disclosures in accordance with TCFD recommendations.
• Joined SPRING and IPDD collaborative engagement groups focused on deforestation.

Climate Goals & Targets

Environmental Challenges

• Limited direct exposure to material operational climate-related risks.
• Transition risks including evolving regulatory environment.

Mitigation Strategies

• Development of investment solutions to respond to changing regulation and demand.
• Examination of climate-related scenario analysis to augment Board's strategy review.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Transition Risks

• Evolving regulatory environment

Opportunities

• Need for capital to flow to Emerging Markets to fund the low-carbon transition

Reporting Standards

Frameworks Used: TCFD, UN PRI, NZAMI, Climate Action 100+, PCAF, SFDR

UN Sustainable Development Goals

• SDG 13 (Climate Action)

Contribution to net zero transition through NZAMI.