Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Social Impact
• Sovereign Risk

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Physical and transitional impacts related to climate change

Transition Risks

• Shifting market or consumer preferences or demand

Reporting Standards

Frameworks Used: SFDR

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Supply Chain Practices
• Climate Change
• Responsible Gambling
• CEO Remuneration

Environmental Achievements

• Updated proxy voting policies in key Asian and Latin American markets to cover board independence, gender diversity, board size, and overboarding.
• Progress made on climate-related disclosures and emissions reduction target setting at Rolls-Royce.

Social Achievements

• Engaged with Samsung on supply chain practices, particularly concerning modern slavery in its mobile phone business.
• Engaged with Danone on board composition, CEO remuneration, and plastics, noting improvements in board diversity and alignment of CEO remuneration with long-term shareholder interests.
• Engaged with Playtech on measures to promote safer gambling and help shape regulation in the industry.

Governance Achievements

• Updated proxy voting policies in key Asian and Latin American markets.
• Engaged with Walt Disney regarding succession planning, board composition, and board evaluation practices.

Climate Goals & Targets

Environmental Challenges

• Addressing modern slavery risks in multi-tiered global supply chains (Samsung).
• Ensuring clarity and alignment of CEO remuneration with long-term shareholder interests and sustainability criteria (Danone).
• Managing climate-related risks and achieving net-zero alignment, particularly concerning product-use emissions dependent on sustainable aviation fuels (Rolls-Royce).

Mitigation Strategies

• Continued engagement with Samsung to improve supplier risk monitoring systems and incentivize compliance with modern slavery policies.
• Further engagement with Danone to clarify how CEO remuneration is linked to greenhouse gas emissions reductions.
• Monitoring Rolls-Royce's progress on emissions reduction targets and related management incentives.

Supply Chain Management

Responsible Procurement

• Risk monitoring systems
• Contractual terms affecting supplier compliance

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Principles for Responsible Investment (PRI), US Investor Stewardship Group (ISG), Workforce Disclosure Initiative (WDI), CDP, Climate Action 100+ (CA100+), Ceres

Environmental Metrics

ESG Focus Areas

• Governance
• Modern Slavery
• Carbon Capture Storage (CCS)
• Climate Change
• Workforce Diversity
• Employee Turnover
• Executive Compensation
• Responsible Mineral Sourcing
• Supply Chain Labor Management

Environmental Achievements

• In-depth research on the state of carbon capture storage (CCS) and utilization in the energy sector.

Social Achievements

• Significant progress in engagement on modern slavery with a global tech hardware company, resulting in improved disclosure on supply chain labor management practices, responsible mineral sourcing, and expansion of third-party labor audits.

Governance Achievements

• Enhanced regulatory reporting by rolling out more advanced SFDR Article 8 and PAI tools.
• Improved governance at Richemont following engagement on board appointments and size.
• Voted in support of dissident nominees at Masimo, leading to significant board change.
• Voted against a non-independent director serving on the audit and compensation committees at an Australian company.

Climate Goals & Targets

Environmental Challenges

• Insufficient IRA tax credits to support broad-based uptake of CCS.
• Low level of independence of the board at Kingsoft Corp.
• Uncertainty on succession of the chair at Kingsoft Corp.
• Potential for food price inflation due to sustainability spending by Tesco and other companies.
• High-risk jurisdictions for Ericsson potentially creating asymmetric risk/reward for investors.
• Concerns around deterioration of fundamentals at Ericsson.

Mitigation Strategies

• Ongoing engagement with companies to address challenges related to CCS viability, board independence, employee turnover, compensation, and sustainability spending.
• Ericsson's proactive efforts to prevent future incidents by reviewing third-party contract terms, implementing guardrails for high-risk countries, and ensuring quality of historical investigation reports.

Supply Chain Management

Responsible Procurement

• Responsible mineral sourcing

Climate-Related Risks & Opportunities

Opportunities

• Carbon Capture Storage (CCS)

Reporting Standards

Frameworks Used: PRI, CDP, Climate Action 100+