Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Modern Slavery
• Digital Ethics

Environmental Achievements

• Completed a firmwide operational emissions assessment for 2022, identifying significant Scope 3 emissions from investments, purchased goods and services, and business travel.
• Increased the number of portfolio companies with science-based targets (SBTs) or other emissions reduction targets.

Social Achievements

• Launched the Modern Slavery Mitigation Project, partnering with Slave-Free Alliance for gap analysis, training, and due diligence framework development.
• Engaged with portfolio companies on human rights risks, including modern slavery, resulting in improved supply chain management practices in some cases.

Governance Achievements

• Improved executive compensation structures in several portfolio companies to better align with shareholder interests.
• Engaged with portfolio companies on board diversity and independence, leading to changes in board composition in some cases.

Climate Goals & Targets

Environmental Challenges

• Marketwide risks such as inflation and interest rate fluctuations impacting portfolio performance.
• Systemic risks related to climate change, modern slavery, and digital ethics requiring ongoing assessment and mitigation.
• Data limitations and inconsistencies from third-party ESG data providers.

Mitigation Strategies

• Developed a macroeconomic risk framework to assess country attractiveness and inform investment decisions.
• Built internal capacity through research, tools, data, and training to address systemic risks.
• Proactively engaged with portfolio companies and third-party data providers to improve data quality and address inconsistencies.

Supply Chain Management

Responsible Procurement

• Supplier code of conduct
• Third-party audits

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• Coastal flooding
• Extreme precipitation

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Investment opportunities in the global transition to a lower-carbon economy

Reporting Standards

Frameworks Used: TCFD