Climate Change Data

FINSBURY GROWTH & INCOME TRUST PLC

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Significantly lower weighted average carbon intensity than its comparable benchmark (data reflects Scope 1 & 2 emissions only).

ESG Focus Areas

  • Climate Change
  • Responsible Ownership
  • Corporate Governance

Environmental Achievements

  • Lindsell Train became a signatory of Net Zero Asset Managers (“NZAM”) in December 2021, committing to support the goal of net zero greenhouse gas emissions by 2050.

Social Achievements

  • Lindsell Train engaged with portfolio companies on a wide range of environmental, social and governance issues, including modern slavery and fair treatment of shareholders.

Governance Achievements

  • The Board conducted an annual review of the Portfolio Manager's ESG policy and the ESG activities of Lindsell Train. The Board also conducted an annual review of other service providers' policies in relation to internal controls and governance matters.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Significant price volatility and shifts in investors’ risk appetites due to rising interest rates and inflation, domestic political turmoil, and the war in Ukraine.
  • Underperformance of the Company’s benchmark.
  • Deteriorating economic environment impacting portfolio investments and potentially service providers.
Mitigation Strategies
  • Share buy-back policy to offer protection against share price widening beyond a 5% discount to NAV per share.
  • Share issuance program as a premium control mechanism.
  • Regular interactions and engagement with shareholders.
  • Monthly portfolio update meetings with the Portfolio Manager.
  • Portfolio Manager regularly engages with portfolio companies to discuss matters of concern affecting operational activities.
  • Annual review of the Portfolio Manager's ESG policy and service providers' policies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Engagement with portfolio companies on supply chain issues, including modern slavery.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Transition to a low-carbon economy
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: AIC SORP, TCFD

Certifications: ISO 14001 (mentioned in relation to paper used for report)

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Winner CFI.co Award 2021. Category: Best ESG portfolio management strategy (UK)

Reporting Period: 2023

Environmental Metrics

Carbon Intensity:Significantly lower than benchmark (Morningstar data).

ESG Focus Areas

  • Climate Change
  • Responsible Ownership
  • Corporate Governance

Environmental Achievements

  • Lindsell Train became a signatory of the Net Zero Asset Managers initiative (NZAM) in December 2021, committing to net-zero greenhouse gas emissions by 2050 or sooner. A 2030 interim target of 55% asset-weighted aligned assets was set.
  • Company has significantly lower weighted average carbon intensity than its benchmark.

Social Achievements

  • 91% of portfolio holdings above 1.0% of NAV increased their dividend this year.
  • More than 75% of the portfolio by value is either buying back shares or has paid a special dividend in 2023.
  • Lindsell Train engaged with five companies on ESG issues including capital allocation, remuneration, governance, human rights, and supply chain.

Governance Achievements

  • Board diversity met FCA Listing Rule targets (at least 40% women, one senior position held by a woman, and at least one director from a minority ethnic background).
  • Adopted a zero-tolerance approach to bribery and corruption and criminal facilitation of tax evasion.
  • Regular engagement with shareholders (AGM, meetings, website updates).

Climate Goals & Targets

Long-term Goals:
  • Net zero greenhouse gas emissions by 2050 or sooner (NZAM).
Medium-term Goals:
  • 55% of asset-weighted committed assets to be considered aligned by 2030 (PAII Net Zero Investment Framework).

Environmental Challenges

  • Three consecutive years of underperformance relative to the FTSE All-Share Index benchmark.
  • Underestimation of the significance of technology change and lack of exposure to digital winners.
  • Poor performance of some high-conviction holdings.
  • Not owning oils, metals, and banks during the Covid-19 recovery period.
Mitigation Strategies
  • Continued focus on long-term investment strategy in high-quality businesses with high returns on equity.
  • Increasing portfolio exposure to data, analytics, and software companies.
  • Share buy-back policy to mitigate share price discount.
  • Active engagement with portfolio companies to understand and address ESG concerns and improve performance.

Supply Chain Management

Responsible Procurement
  • Engagement with portfolio companies on supply chain issues (e.g., Unilever, Mondelez).

Climate-Related Risks & Opportunities

Transition Risks
  • Transition to a low-carbon economy affecting portfolio companies.
Opportunities
  • Investment opportunities in companies benefiting from technology innovation related to climate change.

Reporting Standards

Frameworks Used: AIC SORP, UK Stewardship Code, TCFD (noted but exempt)

Third-party Assurance: PricewaterhouseCoopers LLP