EXAMPLE PAGE - ANNUAL REPORT - LIONTRUST - Flipbook - Sida 30
While the table on the previous page assesses climate risk from
a physical risk perspective, we do not anticipate the impact of
transitional risk to be as significant on Liontrust’s capital requirements.
This is due to businesses adjusting to and markets repricing the impact
of changes in climate policy, technology and market sentiment over
time compared to the unexpected funding and the lack of uncertainty/
implications from an extreme random weather event.
Metrics and Targets
Liontrust uses the Paris Agreement Capital Transition Assessment Tool
to assess our exposure to a 2 degree climate change scenario. As
at 31 March 2021, 5.6% of the Liontrust equity and 7.2% of fixed
income portfolios are in climate-relevant sectors, including power,
oil & gas, coal mining, automotive, shipping, aviation, cement,
steel, and heavy-duty vehicles, which account for around 75% of
global CO2 emissions. This analysis focuses on asset classes with
the most direct and traceable impact on the real economy, and for
which public data are available.
In 2021, Liontrust will publish the relevant climate related metrics of
all of our equity and fixed income strategies against their relevant
benchmark (and also explore how we can best capture the carbon
data of our Multi-Asset investments). This data will also reflect the
percentage of the portfolio invested in fossil fuel reserves and clean
technology solution providers.
Since 2012, the Sustainable Investment team has disclosed the
aggregated carbon emissions for its single strategy funds. This
30 - Liontrust Sustainability Report 2021
work is carried out independently and, on average, the Sustainable
Future (SF) funds emit 68% less CO2 than the markets in which they
are invested, have 22% exposure to companies whose products
help to reduce emissions and hold 0% in companies exposed to the
extraction and production of fossil fuels (such as coal miners and
oil and natural gas exploration and production). Further details on
our carbon emissions can be found on our website: liontrust.co.uk/
measuring-impact
In early 2020, Liontrust’s Sustainable Investment team committed
to its One and a Half Degree Transition Challenge. This involves
engaging with all the companies held in the SF funds and
challenging them to revisit their decarbonisation targets and raise
their ambition to reduce absolute levels of emissions at a rate
consistent with a one-and-a-half-degree global average temperature
rise. Further details can be found on our website: liontrust.co.uk/
degree-challenge
Liontrust participated in the CDP Climate Change programme last
year where we received a ‘C’ score. We strive to improve this
performance year on year.
Liontrust’s carbon emissions
Liontrust is committed to understanding and reducing our
operational greenhouse gas (GHG) emissions. We use offsetting
to be operationally carbon neutral but aim to minimise the use of
offsetting where possible. We calculate our emissions for Scope 1
and 2 emissions as 31.6 tCO2e (market-based); as at 31 March