Climate Change Data

Pendal Regnan Global Equity Impact Solutions Fund

Climate Impact & Sustainability Data (2020, 2021)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:0 tonnes CO2e
Scope 2 Emissions:341.1 tonnes CO2e (Pendal Australia only)
Scope 3 Emissions:248.3 tonnes CO2e (Group corporate travel only)
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:4201.9 KG (Pendal Group Head Office only)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Diversity and Inclusion
  • Responsible Investment
  • Stewardship
  • Modern Slavery
  • Climate Change
  • Community Engagement
  • Employee Wellbeing

Environmental Achievements

  • Reduced waste going to landfill (target: 20% reduction by end of 2020)
  • Implemented a waste management system and enhanced printing systems

Social Achievements

  • Established Diversity and Inclusion (D&I) committees
  • Launched the Group's first Impact strategy, the Regnan Credit Impact Trust
  • Onboarded the Global Equity Impact team
  • Improved overall employee engagement (80%+ response rate in employee surveys)
  • Implemented a new global HR system
  • Supported bushfire recovery efforts through employee matching donations and leave provisions
  • Continued strategic charity partnership with Running for Premature Babies Foundation

Governance Achievements

  • Enhanced governance framework and decision-making processes
  • Appointed Non-Executive Directors to subsidiary boards
  • Expanded Global Executive Committee
  • Improved client reporting on engagement activities

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Reduce waste going to landfill by 20% by end of 2020

Environmental Challenges

  • COVID-19 pandemic
  • Cultural heritage risks for resource companies (Juukan Gorge incident)
  • Modern slavery risks within supply chains and investments
Mitigation Strategies
  • Managed COVID-19 related risks and enhanced governance processes
  • Engaged with resource companies to promote a holistic approach to stakeholder issues
  • Enhanced practices to identify and avoid complicity in modern slavery, including vendor risk management improvements, technology application, mandatory training, and a proprietary assessment tool

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Ongoing development and improvement of the vendor risk management and outsourcing framework

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: Responsible Investment Certification (RIAA)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Regnan Credit Impact Trust
  • Sustainable managed portfolio (collaboration with AMP)
  • Pendal Multi-Asset Target Return Fund (ESG-integrated)

Awards & Recognition

  • Not disclosed

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:41,663 tCO2e
Scope 1 Emissions:2,473 tCO2e
Scope 2 Emissions:1,336 tCO2e
Scope 3 Emissions:36,641 tCO2e
Waste Generated:55.1 tonnes/mEUR

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced GHG emission intensity of investee companies to 893.1 tCO2e/m EUR (EV) from a benchmark of 1,255.9 tCO2e
  • Reduced non-renewable energy consumption to 90.8% from a benchmark of 68.3%
  • Reduced carbon footprint to 320.8 tCO2e/m EUR (EV) from a benchmark of 429.4 tCO2e

Social Achievements

  • Increased exposure to companies addressing health & wellbeing challenges
  • Engaged with CSL on donor safety and health concerns
  • Leveraged Regnan Insight and Advisory Centre's research on Diversity, Equity and Inclusion to inform engagements

Governance Achievements

  • Engaged with portfolio companies on decarbonization commitments and disclosure improvements
  • Improved board gender diversity ratio to 0.42 from a benchmark of 0.47
  • Active voting on shareholder resolutions focusing on governance issues

Climate Goals & Targets

Environmental Challenges

  • Disappointing progress on digitalisation strategy of Brambles
  • Concerns around CSL's plasma collection policies and practices
  • Error leading to wasted COVID-19 vaccine doses at Emergent BioSolutions
  • Acquisition of Hella by Faurecia diluting impact case
  • Uncertainty on Illumina's GRAIL acquisition monetization
Mitigation Strategies
  • Exited Brambles, CSL, Emergent BioSolutions, Hella, and Illumina due to thesis changes or concerns
  • Engaged with CSL on multiple areas including donor and franchise models, public policy, and workplace health and safety
  • Used freed-up capital to add new companies from the buy list

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

Certifications: RIAA Responsible Investment Certification Program

UN Sustainable Development Goals

  • All 17 SDGs

The fund uses the SDGs as an investment lens to identify companies providing solutions to global challenges.