Climate Change Data

Ostrum Asset Management

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Climate Change

Climate Goals & Targets

Environmental Challenges

  • Physical risks from climate change (extreme weather events, rising sea levels, biodiversity loss) impacting various sectors, particularly utilities and agribusiness.
  • Transition risks from the shift to a low-carbon economy, impacting sectors like oil and gas, and creating stranded assets for financial institutions.
Mitigation Strategies
  • Utilizing external data to map climate risks.
  • Analyzing causal relationships and adaptation strategies to assess risks accurately.
  • Developing proprietary ESG Materiality scores to assess financial implications of non-financial factors.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (heatwaves, floods, droughts, wildfires)
  • Rising sea levels
  • Biodiversity loss
Transition Risks
  • Regulatory changes (carbon pricing, emission limits)
  • Market shifts (demand for fossil fuels)
  • Stranded assets
Opportunities
  • Investments in renewable energy
  • Development of clean technologies

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Climate Change
  • Data Security/Cybersecurity
  • Governance
  • Social Challenges (Talent Hiring, Diversity, Product Liability)

Environmental Achievements

  • Majority of Telecom companies committed to CO2 neutrality by 2030
  • FTTH network rollout is 85% more energy efficient than copper networks
  • Initiatives to collect end-of-life mobile phones for recycling or reconditioning

Social Achievements

  • Initiatives to encourage women in scientific scholarships
  • Majority of companies offer training and minimal internet access to low-income populations

Governance Achievements

  • Issuance of sustainable bonds to finance green projects
  • Engagement with 7 European companies on ESG topics (CO2 reduction, risks, cybersecurity, data management, diversity, governance)

Climate Goals & Targets

Medium-term Goals:
  • Most Telecom companies aim for CO2 neutrality by 2030 (some by 2025)

Environmental Challenges

  • Strong increase in data consumption requiring more energy
  • Varying reporting quality on energy consumption
  • Lack of information on data storage energy consumption
  • Difficulties in fleet electrification due to supply chain issues and low battery autonomy
  • Data security and cybersecurity risks varying geographically
  • Governance risks such as antitrust behavior and bribery
  • Lack of standardized reporting on waste recycling
Mitigation Strategies
  • Power Purchase Agreements (PPAs) with renewable energy providers
  • Retrofitting data centers
  • Initiatives for waste recycling and reconditioning
  • Issuing sustainable bonds to finance green projects
  • Implementing customer privacy and protection systems to comply with regulations like GDPR
  • Engagement with companies to improve ESG practices

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather conditions
Transition Risks
  • Increased data consumption leading to higher emissions
Opportunities
  • Energy efficiency improvements through network upgrades and renewable energy sources

UN Sustainable Development Goals

  • SDG 9 (Industry, innovation and infrastructure)
  • SDG 10 (Reduced inequalities)

Sustainable bond proceeds contribute to network optimization, data center construction, IoT, AI, renewable energy integration, and green buildings.