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Summary of disclosure
Risk management continued Processes for managing climate-related risks Pages 18 to 25 in full TCFD report
The Group manages the transition risks of climate change for its operations and investment propositions through its net zero by 2030 strategy, provision of the RIS for clients with sustainability-related objectives, the Risk and Compliance department’s regular horizon scanning and anti-greenwashing-related activities conducted by the Compliance Advisory function. The ESGAC is in place to drive the sustainability agenda of the Group forward, and we view this committee as a key lever for us to manage its transition-related risk. With regard to the physical risks to our operations, the Group’s Operational Resilience Plans mean that staff can work from remote locations in the event our premises are unavailable, and our technology solutions have disaster recovery contingencies. The Group manages climate-related risks to underlying investments through ESG integration, stewardship (engagement and voting) and collaboration with industry peers. Climate-related metrics for our funds, models and portfolios, compared to their benchmarks, are reported to the Investment Committee and Risk and Compliance Committee, for review and oversight. Tracking how these metrics evolve over time can help us in monitoring our exposure to risk. Second-line oversight of the RIS proposition is conducted by the Investment Risk function to ensure adherence to stated objectives on an ongoing basis. The RCC reviews climate-related KRIs, which monitor the management of investment and operational climate-related risks. Metrics used to assess and manage climate-related risks in the investment research selection and review process are outlined, spanning backward and forward-looking indicators that can be used as a proxy for transition risk. We have disclosed our operational Scopes 1, 2 and relevant 3 emissions in the full report, and we track these as part of our net zero by 2030 strategy. We report on various climate metrics to measure and manage the climate-related impacts and risks of our investments, including weighted average carbon intensity, financed emissions, carbon footprint and implied temperature rise. We have reported on Scopes 1, 2 and 3 GHG emissions produced through our operational activities, and on the Group’s financed emissions across Scopes 1 and 2. Beyond absolute and intensity-based emissions metrics, we report additional climate metrics for our discretionary portfolio. We have a formal target in place to reach net zero across all our operations by 2030. To support this, we have submitted our first mandatory ESOS action plan to the EA, outlining our commitment to improving our energy saving measures. At the time of writing, two of the five actions outlined in this plan have been completed, through the sale of our International business and its associated offices, as well as the closure of our office in Bury St Edmunds. Our action plan is publicly available on the EA’s website. We continue to assess net zero target-setting options to cover financed emissions. Whilst we have not set quantitative targets relating to our investments, we are committed to the development of ESG integration and stewardship in line with industry standards (including the integration of climate risks and opportunities into investment analysis, engagement and voting) and the development of our RIS.
How we integrate these risks into our overall risk management Pages 18 to 25 in full TCFD report Metrics and targets Metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is available Page 26 to 29 in full TCFD report Disclosure of Scopes 1, 2 and, if appropriate, 3 GHG emissions and the related risks Pages 26 to 29 in full TCFD report
Targets used to manage climate-related risks and opportunities and performance against targets Page 26 to 29 in full TCFD report
Brooks Macdonald Group plc Annual Report and Accounts 2025
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