Eastspring Investments: Responsible Investment Report 2022
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Milestone 4 C ompany has developed or are planning to implement a plan to address the issue
A steel company in Australia.
so. In 2023, the updated CDP database showed that the company has provided their first ever disclosure. We will continue to monitor and engage the company on its progress.
During our engagement, we explained the benefits of disclosing to CDP, which include improving its reputation as a transparent company, improving access to capital, moving ahead of regulatory changes on environmental reporting, identifying risks that were previously overlooked, and benchmarking against industry peers. Five months later, the company informed Eastspring that it acknowledged our expectations to disclose on CDP and would participate in CDP’s disclosure cycle for 2022. Given the rich inventory of data and information on climate action the company already has, we believe that it can disclose to CDP in 2022. We rate this company as a Milestone 4 because the company had agreed to report to CDP and was in the process of doing
Upon assessment, the company had fulfilled most of our criteria on climate change risk as it has set medium-term and long-term targets and shared details of its decarbonisation journey extensively. It has also conducted scenario analysis and explained the key drivers and assumptions for each scenario. In addition, its senior management, including the Chief Executive Officer (“CEO”) and Chief Sustainability Officer (“CSO”), have a part of the variable incentives linked directly to emissions reduction. The only information gap is its disclosure to CDP’s Climate Survey. Initially, the company was reluctant to disclose to CDP as the Sustainability team had focused on enhancement in Taskforce on Climate- related Financial Disclosures (“TCFD”).
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