The Climate Clock is divided into two sections. The red Global Warming Deadline indicates that in order to have a chance of staying under the critical threshold of 1.5°C warming, we must achieve near zero emission in less than seven years. The blue Renewable Energy Lifeline shows the % of global energy coming from renewable sources which is rising, but not nearly fast enough.
Sustainability and the investment process
By selecting Sustainable Development (SD) as Earth Capital's (EC) investment theme, social and environmental challenges can be addressed while simultaneously targeting enhanced financial returns.
EC has fully integrated a performance-focused investment philosophy with Environment, Social and Governance (ESG) metrics into the investment process in all parts of the investment cycle. We believe that it is vital to measure and performance manage annually the level of impact that each investment makes to SD, whether positive or negative.
The opportunity is vast as over the next 20 years global industries will transform as they make the necessary but disruptive transition toward creating a more sustainable economy. Our approach is centred on a recognition that issues around energy, food and water will become increasingly critical and material in a world of growing population and demand, facing the challenges of climate change and resource scarcity. This informs our investment approach and our choice of investment themes. We then subject our investments to the Earth Dividend™ process which identifies potential areas of risk in the business's value chain which can be better managed or areas where we can innovate further the business model to create additional future value. In this way EC is both financing change and changing the way finance is done.
Our Sustainable Development Policy and related investment guidelines are integral to the operations of the firm. These set out ‘no-go’ areas into which the firm will not invest, and minimum standards based upon international best practices which all investments should meet. EC continuously strives to improve its ESG performance and integrate internationally recognised applicable best practices in all areas of our operations.
EC's annual Sustainability Review brochure is available here
Grant Thornton’s Limited Assurance Report 2020
EC's Sustainability Policy Document is available here
EC’s Sustainable Development Investment Guidelines is available here
