Climate-related Financial Disclosures

(TCFD)

We report in accordance with the recommendations of the Task force on Climate-related Financial Disclosures (TCFD) and publish a separate TCFD report that aligns with the Financial Stability Board Taskforce recommendations. 

Climate-related Financial Disclosures Report 2021

  Pre financial year end March 2021 Financial year end March 2021  Looking forward
Governance
  • Strengthened the group environmental policy and climate change statement
  • Established an ESG Executive Committee
  • Released a group fossil fuel policy
  • Assigned board responsibility and oversight for climate-related risks and opportunities
  • Assigned senior management responsibility for climate-related risks and opportunities
  • Deepened the ESG skills of the DLC SEC
  • Extensive engagement with executive and senior leadership on the responsibility, risk and business opportunities related to sustainability
  • Strengthened our framework to link executive directors’ remuneration to ESG KPIs
  • 84% of our board members participated in climate-related workshops
  • Identify skills gaps within the board and management with regards to climate risks
  • Build capacity through directed climate education where gaps exist within the board and management
Strategy
  • We support the Paris Agreement’s aim of holding the increase in the global average temperature to well below 2°C above pre-industrial levels and of pursuing efforts towards limiting it to 1.5°C
  • Committed to ongoing carbon neutral emissions across all operations (Scope 1 and 2)
  • Created a Sustainable Finance Framework
  • Arranged and participated in one of the first European mid-market ESG linked loans to the value of €600 million
  • Received shareholder support for climate commitments and published our first TCFD report
  • Strengthened our supply chain monitoring
  • Started engaging with clients on their climate aspirations
  • Conducted a qualitative assessment of climate risk in our own operations
  • Assess financed emissions in our lending and investing portfolios to understand their net-zero alignment in accordance with the trajectories of the countries net-zero commitments where we operate in
  • Assess impact of climate-related risks and opportunities in our business
  • Collaborate on climate-related disclosures with stakeholders, for example, through PCAF
Risk management
  • Evaluated lending and investment portfolios for ESG risks
  • Evaluated lending and investment portfolios for climate-related risks and opportunities
  • Evaluated lending and investment portfolios for general ESG risks
  • Evaluated lending and investment portfolios for climate-related risks and opportunities
  • Automated ESG screening incorporated into the Investec plc risk management process
  • Implement automated ESG screening, measurement and reporting within our South African operations
  • Participate in the SARB climaterelated stress tests for capital and follow the BoE stress test guidelines
Metrics and targets
  • Included non-financial and ESG related targets within executive remuneration with a total weighting of 20% of shortterm incentives and 25% of long-term incentives
  • Committed to ongoing carbon neutral emissions across all operations
  • Achieved carbon neutral status across our global operations for direct emissions
  • Disclosed our fossil fuel exposure and ESG risk exposure
  • Achieved net-zero direct emissions for the third financial year as part of our commitment to ongoing carbon neutrality in our Scope 1, 2 and operational Scope 3 emissions
  • 100% of operational energy requirements (Scope 2) sourced from renewable energy through renewable energy certificates
  • Joined the Partnership for Carbon Accounting Financials (PCAF) to collaborate with peers measuring Scope 3 emissions
  • Measurement of carbon intensity within our Scope 3 lending and investment portfolios using the PCAF methodologies with an initial focus on our lending collateralised by property and mortgage portfolio’s
  • Continue to assess viable scenarios in line with industry recommendations
  • Assess viability of net-zero commitments within our investment and lending portfolios

Climate-related Financial Disclosures report 2020