Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Strong corporate governance complying with highest standards
• A Supervisory board composed of 15 recognised professionals, including 9 independent members

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Improved processes and put more structure around sustainable investment practices; defined key ESG issues for all direct equity holdings and assessed how well these issues are being addressed; joined two initiatives designed to improve the quality of engagement between investors and companies for better long-term risk-adjusted returns; began work on calculating the carbon intensity of portfolios.

Social Achievements

• Joined the UN Principles for Responsible Investment (PRI) in March 2018; engaged with companies like Ryanair and Wells Fargo to address concerns regarding labor relations, safety, and corporate governance; expanded network of external managers demonstrating high levels of ESG integration.

Governance Achievements

• Achieved the highest tier from the FRC for adherence to the UK Stewardship Code; developed and implemented an ESG policy applied to at least 50% of assets under management; actively engaged in shareholder voting and corporate governance discussions; launched the Exbury Fund with higher ESG thresholds.

Climate Goals & Targets

Environmental Challenges

• Limited progress in ESG integration within fixed income investments due to low interest rates and credit spreads; some portfolio holdings merit further ESG assessment (e.g., Newcrest Mining, United Breweries).

Mitigation Strategies

• Planning a strategic review of the investment process to improve ESG integration; aiming to increase consideration of ESG in bond selection, particularly corporate bonds; ongoing engagement with external fund managers to improve their ESG practices.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Principles for Responsible Investment (PRI), UK Stewardship Code

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Investing
• Corporate Governance
• Human Rights
• Environmental Sustainability

Environmental Achievements

• Not disclosed

Social Achievements

• Improved engagement with third-party fund managers, resulting in most publishing formal ESG policies by the end of 2019.

Governance Achievements

• Published an updated responsible investment policy clarifying areas of exclusion and increased scrutiny ('red lines' and 'amber zones').
• Integrated ESG considerations into the fixed income investment process.

Climate Goals & Targets

Environmental Challenges

• Limited ESG integration in the fixed income market.
• Some companies lacking sufficient climate change disclosures.

Mitigation Strategies

• Created an integrated process for fixed income securities, incorporating ESG factors.
• Engaged with companies like Admiral and Charter Communications to improve climate change reporting and disclosure.
• Used Sustainalytics' research to identify and address ESG risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact Principles

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

The Exbury Fund aligns its investment strategy with the Paris Agreement and UN Sustainable Development Goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Employee wellbeing
• Gender and ethnic minority inclusion
• Reduction in operational GHG emissions
• ESG risk and opportunity considerations in investment businesses
• Responsible investment solutions

Environmental Achievements

• 85% of reported office electricity procurement is from renewables (56% in 2019)
• 62% reduction in GHG emissions per FTE from 2019
• Total Scope 1 and 2 GHG emissions decreased by 36% or 963 tonnes from 2019
• 100% of the paper procured by Rothschild & Co offices is from sustainable sources

Social Achievements

• Global Female Sponsorship Programme launched
• Global roll-out of Unmind wellbeing app
• 39% of new hires were female
• 75% increase in Pro-Bono Advisory mandates vs. 2019
• 34% of employees globally engaged with Community Investment in 2020

Governance Achievements

• All investment businesses UNPRI signatory
• Publication of revised Group Code of Conduct
• Revised Group Anti-Bribery and Corruption Policy
• Publication of Group Financial Crime Policy Statement

Climate Goals & Targets

Environmental Challenges

• COVID-19 outbreak impacting working practices, market conditions, and interest rates
• Declining interest rate environment
• Brexit's impact on the UK and European economic environment
• Reduced value accretion in Merchant Banking’s private equity portfolio

Mitigation Strategies

• Swift move to home-working
• Tight cost control
• Conservative lending strategy
• Continued investment in business growth
• Resilient portfolio investments

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Material Use Standard
• UK Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Government policy and legal requirements
• Reputational considerations

Opportunities

• Growth in sustainable finance

Reporting Standards

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

Certifications: ISO 27001

Third-party Assurance: KPMG

UN Sustainable Development Goals

• SDG 5
• SDG 7
• SDG 10
• SDG 12
• SDG 13
• SDG 15
• SDG 16

Group’s Corporate Responsibility initiatives contribute to these goals

Sustainable Products & Innovation

• Responsible investment solutions

Awards & Recognition

• CDP ‘A-’ rating for climate disclosure

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity & Inclusion
• Responsible business conduct
• Employee wellbeing
• Data & Cybersecurity
• Biodiversity

Environmental Achievements

• 70% reduction in operational GHG emissions vs. 2018 baseline
• 91% renewable electricity
• 79% of reporting offices are USUP free
• Net-zero operations 2030 commitment

Social Achievements

• 25.4% female in AD level and above
• 40% female Board members
• ~1,300 participants in D&I training programs
• Agile Working Policy implemented

Governance Achievements

• 97% completion of Information Security training
• 96% completion of Data Protection Training
• 100% of clients subjected to financial crime risk assessment
• All business divisions assessed for ABC risk

Climate Goals & Targets

Environmental Challenges

• Geopolitical context and its impact on business operations (e.g., suspension of Global Advisory operation in Moscow)
• Supply chain disruptions (implied)
• Climate-related physical and transition risks

Mitigation Strategies

• Swift and decisive action to support global effort to isolate Russia from capital markets
• Suspension of Global Advisory operation in Moscow and winding down Russian activity
• Thorough mandate and client onboarding procedures considering heightened risks
• Implementation of investment policies to limit environmental impact
• Development of alternative sourcing strategies (implied)
• Raising Internal Carbon Price to €50 per tonne of CO2e
• Commitment to achieve net-zero emissions in operations by 2030

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts
• Cost changes for energy and carbon offsetting

Opportunities

• Advising clients on energy transition
• Investing in sustainable solutions

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC, SFDR

Certifications: ISO 27001 (data center)

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 5 (Gender equality)
• Goal 10 (Reduced inequalities)

Initiatives contributing to these goals through investment, advisory services, philanthropy, and internal policies

Sustainable Products & Innovation

• Sustainable investment products (Article 8 and 9 under SFDR)
• Impact funds

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Biodiversity
• Diversity and Inclusion
• Employee wellbeing
• Inequality
• Responsible business conduct

Environmental Achievements

• 40% decrease in operational GHG emissions vs 2018 baseline
• 92% renewable electricity procurement
• 100% compensation of operational GHG emissions (33% covered by carbon removal solutions)

Social Achievements

• Launched Women’s Leadership Forum bringing together over 130 Partners and Managing Directors
• 26.2% female at Assistant Director level and above
• 40% female Supervisory Board members
• 850+ new hires (41% female)
• Group-wide training platform on sustainability challenges and opportunities rolled out

Governance Achievements

• ESG performance reporting integrated into regular management reporting
• Established a common Responsible Investment roadmap with three priorities: Act for climate and preserve our planet, Contribute to a more inclusive economy, Enable the orientation of financial flows towards sustainable investments
• 100% relevant employees completed Financial Crime training
• 99% relevant employees completed Anti-Bribery and Corruption training
• 97% relevant employees completed Data Protection training

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events (indirectly mentioned)
• Limited availability of reliable data on biodiversity impact and related risks
• Increased GHG emissions in 2022 due to post-pandemic return to office and business travel

Mitigation Strategies

• Developed alternative sourcing strategies (indirectly mentioned)
• Implementing robust due diligence approach to mitigate risks of carbon credit procurement
• Developing a transition plan to clarify intervention levers to reduce operational emissions
• Investigating the use of Sustainable Aviation Fuel (SAF) certificates
• Encouraging switching to electric vehicles

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Water stress

Transition Risks

• Regulatory changes
• Market shifts
• Reputational risks

Opportunities

• Energy transition investments
• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, TCFD (referenced), UNGC

Certifications: Null

Third-party Assurance: KPMG (limited assurance)

UN Sustainable Development Goals

• Goal 7
• Goal 10
• Goal 12
• Goal 13
• Goal 15
• Goal 16

Initiatives contribute to these goals through various programs and policies

Sustainable Products & Innovation

• Net Zero funds
• Green Bonds fund
• Five Arrows Sustainable Investments fund

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Biodiversity
• Diversity and Inclusion
• Employee wellbeing
• Inequality
• Responsible business conduct

Environmental Achievements

• Decrease of total GHG emissions by 31% from baseline year, 43% for scope 1+2 emissions, 30% for scope 3 emissions
• 10% reduction in energy consumption per FTE in 2023
• 91% of electricity sourced from renewable sources in 2023
• Decrease of total paper use per FTE by 68% from the baseline year
• 39% of the compensation portfolio is from credits generated by carbon removal projects

Social Achievements

• Launched Career Relaunch Programme in 2023 focusing on experienced female professionals
• Increased female representation at the 2023 Global Graduate Programme to 37%
• 64% of global colleagues attended one or more Inclusion Curriculum workshops
• 100% of Group employees benefited from a performance review incorporating renewed focus on development planning

Governance Achievements

• 100% of relevant employees attested to the Group Code of Conduct
• 100% of relevant employees attested to the Group Client Due Diligence Policy
• 100% of relevant employees attested to the Group Sanctions Policy
• 97% of relevant employees completed the Group Information Security Education and Awareness Training

Climate Goals & Targets

Environmental Challenges

• Limited availability of reliable data on biodiversity impact and related risks
• Climate-related transition risks, which have the potential to amplify existing strategic risks
• Increased Scope 3 emissions in 2023 due to rebound of business travel
• Uncertainty around the use of emission factors based on pandemic travel assumptions

Mitigation Strategies

• Developing its risk assessment with regards to the potential impact of climate change
• Presenting a consolidated transition plan across its business model
• Setting an Internal Carbon Price (€72 per ton of tCO2e)
• Purchase of Sustainable Aviation Fuel (SAF) certificates
• Gradual increase of carbon removal credits in the compensation portfolio

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Water stress

Transition Risks

• Regulatory changes
• Changing client expectations
• Adaptation of internal control frameworks

Opportunities

• Advisory services related to low-carbon transition
• Investment opportunities in sustainable businesses

Reporting Standards

Frameworks Used: UN Global Compact, Greenhouse Gas Protocol, EU Taxonomy Regulation (considered as a non-financial undertaking)

Certifications: Null

Third-party Assurance: KPMG (limited assurance)

UN Sustainable Development Goals

• 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 13, 14, 15, 16

Various initiatives contribute to these goals as detailed in the report's universal reference table.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Standard sector exclusions
• Consideration of mandatory principal adverse impacts

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: MSCI ESG Research, EU Taxonomy, UN Global Compact, OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business and Human Rights, Paris Agreement, UN Sustainable Development Goals (SDGs)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 5 (gender equality)
• Goal 8 (decent work and economic growth)
• Goal 10 (reduced inequalities)

Companies’ general positive contribution through contributing revenue, i.e. revenue linked to activities with a positive impact on the environment or society (clean energy, energy efficiency, access to care, etc.) or to issuance of sustainable debt instruments (green, social or sustainable bonds)

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Business Ethics
• Governance

Environmental Achievements

• Lowering thresholds on thermal coal exclusion in accordance with Urgewald and the Global Coal Exit List
• Setting Net Zero Asset Managers initiative target: 75% investment in companies with SBTi-validated climate objectives by 2030
• Reducing carbon intensities and placing investments on a Net Zero trajectory
• Increasing the number of companies aligned with the Paris Agreement in portfolios

Social Achievements

• Supporting the Polar Pod expedition and 1% for the Planet
• Supporting the Café Joyeux initiative
• Priority engagement on increasing the proportion of women on staffs and Boards of Directors, as well as on signing the UN Global Compact
• Improving results with UNGC signatory

Governance Achievements

• Ethical screening in line with common exclusion framework (international sanctions, non-cooperative countries for tax purposes, UN Global Compact violations)
• Evaluating and monitoring governance practices using MSCI ESG Research data, international codes of conduct, analysis of issuers’ transition plans, board diversity, controversies, and management track records
• Monitoring governance scores below 2 out of 10 (MSCI ESG Research)

Climate Goals & Targets

Environmental Challenges

• Exposure to companies with high greenhouse gas emissions and intensity
• Exposure to companies involved in fossil fuels
• Exposure to issuers not committed to the Paris Agreement
• Exposure to companies violating human rights or ethical standards
• Lack of gender diversity in governance bodies
• Exposure to companies involved in controversial weapons
• Exposure to issuers with weak anti-corruption processes
• Exposure to countries violating human rights

Mitigation Strategies

• Thermal coal exclusion
• Tobacco sector exclusion (planned)
• Integrating climate factors in selection (environmental rating, climate transition profile analysis, controversies, Paris Agreement alignment)
• Priority engagement on climate transition
• Net Zero Asset Managers initiative target
• Investment principles relative to fossil fuels
• Monitoring carbon and transition profiles
• Integrating reported taxonomic data
• Participating in working groups on transition and Paris Agreement optimization
• Deploying a proprietary analysis grid to assess issuer transition plans
• Diminishing exposure to fossil fuels
• Exclusions relating to controversial weapons, international sanctions, non-cooperative countries for tax purposes, and UN Global Compact
• Extending common exclusion to all controversial weapons
• Integrating social and governance factors into selection (S&G rating, profile analysis, human rights, international standards alignment)
• Priority engagement on increasing women's representation
• Monitoring S&G scores and percentage of women on boards
• Controversy management and escalation policies

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SFDR

UN Sustainable Development Goals

• SDG 5 (Gender Equality)
• SDG 8 (Decent Work and Economic Growth)
• SDG 10 (Reduced Inequalities)

Monitoring of sustainable performance indicators aligned with environmental, social, governance, human rights pillars, and UN SDGs. Detailed in Transparency Code of labelled funds.