Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy emissions in US East Coast office by converting light bulbs to LEDs
• Maximized use of video conferencing to limit inter-office air travel
• Used electronic media instead of paper reports
• Recycled paper, cardboard, glass, and printer toner cartridges
• Used FSC-certified paper

Social Achievements

• Maintained transparent policies regarding diversity, compliance, employee participation, and workplace environment
• Increased female representation in workforce to 38% (from 34%), including 20% in senior management (from 25%) and 47% in middle management (from 40%)
• Sponsored employees for professional qualifications
• Implemented cross-training programs across offices
• Engaged in community support activities (food bank, Singapore Community Chest, blood drive, Habitat for Humanity, etc.)

Governance Achievements

• Launched initiative to promote ESG awareness in emerging market investments
• Used Sustainalytics ESG research for manager due diligence
• Encouraged managers to improve ESG transparency
• Signed UN Principles for Responsible Investment (PRI) and UK Stewardship Code

Climate Goals & Targets

Environmental Challenges

• Difficult and volatile emerging markets
• Widening Size-Weighted Average Discount (SWAD) of closed-end funds
• Brexit uncertainty
• US state taxation

Mitigation Strategies

• Capitalized on SWAD through buybacks, tender offers, liquidations, and capital gains distributions
• Diversification strategy
• Monitored net currency position and offset it by forward sales of US dollars for sterling
• Implemented cost controls

Supply Chain Management

Responsible Procurement

• Using local suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNGC, PRI, UK Stewardship Code

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced global footprint by closing Seattle and Dubai offices in 2022
• Procured green energy electricity contracts for London and Rochester offices.
• Adopted a group-wide hybrid working from home policy in July 2022.

Social Achievements

• Not disclosed

Governance Achievements

• Enhanced climate risk management reporting and oversight through the Audit & Risk Committee and Board of Directors.
• Incorporated ESG considerations into annual due diligence on CEF investment managers using Sustainalytics data.

Climate Goals & Targets

Environmental Challenges

• Managing climate-related risks across transition and physical categories (policy, legal, technology, market, reputational, acute physical, chronic physical).
• Defining and implementing GHG reduction targets and strategies.
• Assessing and managing Scope 3 emissions across the value chain.

Mitigation Strategies

• Developing an approach to integrate climate-related risk into decision-making processes.
• Reducing operational footprint through office closures and hybrid work policy.
• Extending GHG assessments to cover additional Scope 3 categories.
• Reviewing utilities procurement strategy to secure contracts with Renewable Energy Guarantees of Origin (REGOs).
• Considering on-site renewable energy technologies.
• Reviewing policies for business flights, focusing on reduction and offsetting.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Increased likelihood and severity of wildfires
• Increased severity of extreme weather events
• Heatwaves
• Coldwaves/frost
• Droughts
• Heavy precipitation
• Changes in precipitation patterns
• Deforestation
• Water stress
• Rising mean temperatures
• Rising sea levels

Transition Risks

• Increased pricing of GHG emissions
• Enhanced emissions-reporting obligations
• Mandates on and regulation of existing products and services
• Exposure to litigation
• Regulation and supervision of climate-related risk in the financial sector
• Investing that could create or contribute to systemic risk for the economy
• Carbon pricing mechanisms
• Substitution of existing products and services with lower emissions options
• Costs to transition to lower emissions technology
• Unsuccessful investment in new technologies
• Changing customer behaviour
• Uncertainty in market signals to climate risk
• Rise in risk-based pricing of insurance policies
• Loss of clients due to a fund’s poor environmental performance outcomes
• Contraction of insurance markets
• Shifts in consumer preferences
• Negative press coverage related to support of projects or activities with negative impacts on the climate
• Stigmatization of sector
• Increased stakeholder concern or negative stakeholder feedback

Opportunities

• Potential medium to long-term access to new markets
• Ability to diversify business activities
• Shift in consumer preferences
• Participation in renewable energy programs and adoption of energy efficiency measures
• On-site renewable energy generation
• Reputational benefits resulting in increased demand for goods/services
• Reduced operational usage and consumption
• Transportation policy changes and humanitarian offsetting of necessary flights for business travel

Reporting Standards

Frameworks Used: TCFD

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

• Climate Change
• Governance

Environmental Achievements

• Reduced scope 1 & 2 market-based emissions by 26 tCO2e
• Transitioned majority of offices to renewable energy tariffs

Social Achievements

• Held first Group Strategy meeting for all employees and the Board after a four-year gap

Governance Achievements

• Revised Audit & Risk Committee Terms of Reference in February 2024

Climate Goals & Targets

Environmental Challenges

• Increase of 255 tCO2e in business travel due to increased marketing efforts and client meetings

Mitigation Strategies

• Purchased verified Gold Standard offsets to mitigate increased business travel emissions

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Increased likelihood and severity of wildfires
• Increased severity of extreme weather events
• Heatwaves
• Coldwaves/frost
• Droughts
• Heavy precipitation
• Changes in precipitation patterns
• Deforestation
• Water stress
• Rising mean temperatures
• Rising sea levels

Transition Risks

• Increased pricing of GHG emissions
• Enhanced emissions-reporting obligations
• Mandates on and regulation of existing products and services
• Exposure to litigation
• Regulation and supervision of climate-related risk in the financial sector
• Investing that could create or contribute to systemic risk for the economy
• Carbon pricing mechanisms
• Substitution of existing products and services with lower emissions options
• Costs to transition to lower emissions technology
• Unsuccessful investment in new technologies
• Changing customer behaviour
• Uncertainty in market signals to climate risk
• Rise in risk-based pricing of insurance policies
• Loss of clients due to a fund’s poor environmental performance outcomes
• Contraction of insurance markets
• Shifts in consumer preferences
• Negative press coverage
• Stigmatization of sector
• Increased stakeholder concern

Opportunities

• Potential medium to long-term access to new markets
• Ability to diversify business activities
• Shift in consumer preferences
• Participation in renewable energy programs
• Adoption of energy efficiency measures
• On-site renewable energy generation
• Reputational benefits
• Move to more efficient buildings
• Reduced operational usage and consumption
• Transportation policy changes

Reporting Standards

Frameworks Used: TCFD, SECR

UN Sustainable Development Goals

• 7
• 13

Our purchased offset projects demonstrate additionality and permanence, ensuring that they are impactful and sustainable over time. Each carbon project used in our offsetting strategy meets at least three of the UN Sustainable Development Goals.