Su s t i n a b i l i ty re p o r t 2 0 2 0

Su s t a i n a b i l i ty re p o r t2 0 1 9

Table of contents

Executive summary 2

Our heritage 6

Our strategy 8

Responsible investment 10

Active ownership 14

Environmental - climate related disclosures 20

Social 26

Our outlook 34

322 3

We a re d e l i g h te d to s h a re wi t h yo u t h i s re p o r t o n G I B ( U K ) ’s a c t i v i t i e s i n 2 0 1 9 , a s te s ta m e n t to o u r c o m m i t m e n t to p rov i d e o u r s e r v i c e s i n a re s p o n s i b le m a n n e r.

2 0 1 9 wa s a ye a r w h e n s u s ta i n a b i l i ty ro s e u p to t h e g lo b a l a ge n d a . M i l l i o n s o f s c h o o l c h i ld re n we n t o n s t r i ke a b o u t c l i m ate c h a n ge, a n d gove r n m e n ts p le d ge d to re d u c e e m i s -s i o n s . C o n c e r n s ove r p l a s t i c wa s te re a c h e d a t i p p i n g p o i n t , a n d we s aw m a r ke d re d u c t i o n s i n s i n g le - u s e p l a s t i c . M o re gove r n a n c e s c a n d a l s re i n fo rc e d t h e n e e d fo r b e s t p ra c t i c e a n d i n ve s to r e n ga ge m e n t .

Re g u l ato rs i n te r ve n e d to e n h a n c e s ta n d a rd s a n d i m p rove d i s c lo s u re s . M a n y a s s e t m a n a ge rs h e l p e d t h e i r c l i e n ts to i n ve s t re s p o n s i b ly, a n d i n s u p p o r t o f s u s ta i n a b le d eve l-o p m e n t . D ata o n En v i ro n m e n ta l , S o c i a l a n d G ove r n a n c e c o n s i d e rat i o n s b e c a m e m o re re a d i ly ava i l a b le , i m p rove d i n q u a l i ty, a n d we re i n te g rate d m o re sys te m at i c a l ly i n to i n ve s t m e n t p ro c e s s e s . M e c h a n i s m s fo r c o l le c t i ve c o l l a b o -rat i o n i m p rove d , e n a b l i n g s m a l l e r i n ve s to rs to a d d t h e i r vo i c e to o t h e rs .

I t i s r i g h t t h at s u s ta i n a b i l i ty h a s b e e n s e t a s i d e a s we c o l-le c t i ve ly f i g h t t h e g lo b a l COV I D - 1 9 p a n d e m i c . T h e wo r ld i s fo c u s e d o n t h e i m m e d i ate t h re at to go o d h e a l t h a n d we l l b e i n g , n o t t h e 2 0 3 0 ta rge t a s s e t o u t i n U N S D G 3 . H oweve r, t h e re i s a n o p p o r t u n i ty fo r u s to e m b e d s u s ta i n -a b i l i ty c o n s i d e rat i o n s i n o u r h o p e d - fo r re c ove r y.

B e h av i o u ra l c h a n ge d u r i n g t h i s c r i s i s m ay l ay t h e fo u n d a -t i o n fo r lowe r b u s i n e s s t rave l . Ta c k l i n g t h e re d u c t i o n i n a i r q u a l i ty t h at h a s h e l p e d i n c re a s e c h ro n i c re s p i rato r y d i s e a s e s m ay h ave re n ewe d i m p e t u s . An d we h o p e t h a t t h e c o m i n g - to ge t h e r o f c o m m u n i t i e s d u r i n g t h i s c r i s i s w i l l h e l p u s fo r m b rave c o a l i t i o n s to ta c k le t h e wo r ld ’s wi d e r s u s ta i n a b i l i ty c h a l le n ge s to o.

G I B ( U K ) h a s a lways b e e n c o n s c i o u s o f t h e m a r k i t le ave s , a n d we h o p e yo u e n j oy re a d i n g a b o u t o u r e f fo r ts ove r t h e p a s t ye a r.

C EO, G I B ( U K )

* G re e n s c o re s i g n i f i e s s t ro n g E SG c re d e n t i a l s , a m b e r s i g n i f i e s s a t i s fa c to r y E SG c re d e n t i a l s . 54

Re p o r t s u m m a r y

T h i s re p o r t p rov i d e s o u r s ta ke h o ld e rs wi t h a n ove r v i ew o f t h e s u s ta i n a b i l i ty a n d e n v i ro n m e n ta l , s o c i a l a n d gove r n a n c e ( E SG ) a c t i v i t i e s a n d i n i t i at i ve s t h at

G u l f I n te r n at i o n a l B a n k ( U K ) “ G I B ( U K ) ” h a s c o n d u c te d i n 2 0 1 9 .

S u s t a i n a b i l i ty i s p a r t o f G I B ( U K ) ’s D N A .

To m e e t c l i e n t re q u i re m e n ts , we h ave b e e n ta k i n g s o c i a l ly re s p o n s i b le

i n ve s t m e n t ( S R I ) c o n s i d e rat i o n s i n to o u r i n ve s t m e n t d e c i s i o n m a k i n g

p ro c e s s s i n c e i n c e p t i o n

S u s t a i n a b i l i ty s i t s at t h e h e a r t o f G I B ( U K ) .

We c o n s i d e r s u s ta i n a b i l i ty i n o u r s t rate g y a n d a l l o u r p ra c t i c e s ; b e i t

i n ve s t m e n ts o r o p e rat i o n s

Pa r t n e r s h i p, e n g a g e m e n t a n d k n ow l e d g e t ra n s fe r a re c e n t ra l to o u r

a p p ro a c hWe e n ga ge wi t h o u r c o m m u n i ty a n d

n e two r k , a n d s h a re o u r t h o u g h ts i n t h e s p a c e o f s u s ta i n a b i l i ty a n d re s p o n s i b l e

i n ve s t m e n t

U S D 1 1 . 8 m i l l i o n2 0 1 9 p ro f i ts

6 9 7t re e s p l a n te d

a c ro s s t h e U K to o f f s e t o u r c a r b o n

e m i s s i o n s f ro m f l i g h ts

C a r b o n n e u t ra lwe c o m m i tte d to

b e c o m e c a r b o n n e u t ra l i n 2 0 1 9

a n d b eyo n d

1 9 9 4to ta l e m p loye e t ra i n i n g h o u rs

xx

7 0 %o f o u r e m p loye e s re s p o n d e d to o u r

e m p l oye e e n ga ge -m e n t s u r vey

6 6 %o f s e c u r i t i e s i n

o u r F i xe d I n c o m e p o r tfo l i o h ave a n M SC I E SG s c o re

7s p e c i a l c o r p o rate

s o c i a l re s p o n s i b i l i ty a c t i v i t i e s a c ro s s t h e

ye a r

5 0 %o f o u r E xe c u t i ve

C o m m i tte e ro le s a re h e ld by wo m e n

9 5 %o f o u r s c o re d

c o u n te r p a r t i e s re c e i ve d a g re e n o r a m b e r E SG s c o re*

9 0 k go f s i n g l e u s e

p l a s t i c re d u c t i o n s i n c e 2 0 1 8

76

O u r h e r i t a ge

G I B ( U K ) p rov i d e s a s s e t m a n a ge m e n t a n d t re a s u r y s e r v i c e s f ro m Lo n d o n a n d N ew Yo r k . O u r i n ve s t m e n t a p p ro a c h i n c o r p o rate s E SG p r i n c i p le s a c ro s s o u r p ro c e s s e s . Eq u a l ly, we e m b e d s u s ta i n a b i l i ty i n t h e d e l i ve r y o f o u r t re a s u r y s e r v i c e s .

O u r M i d d le Ea s te r n ro o ts h ave i n s t i l l e d t h e p ro fo u n d i m p o r ta n c e o f lo n g l a s t i n g re l a t i o n s h i p s . S i n c e o u r e s ta b l i s h m e n t i n 1 9 7 5 , we h ave fo c u s e d o n fo r m i n g a d e e p b o n d wi t h o u r c l i e n ts . We b e l i eve t h at c o n s i d e r i n g a n d i n te g ra t i n g E SG fa c to rs i s p a r t o f a c t i n g i n t h e i r b e s t i n te re s ts .

Su s ta i n a b i l i ty a n d re s p o n s i b le i n ve s t i n g h ave b e c o m e p a r t o f o u r D N A . S i n c e o u r e s ta b l i s h m e n t i n 1 9 7 5 , we h ave b e e n a d o p t i n g s o c i a l ly re s p o n s i b le i n ve s t m e n t ( S R I ) p ra c t i c e s , i n c l u d i n g t h ro u g h c o m p l i a n c e wi t h S h a r i ’ a h p r i n -c i p le s i n s o m e o f o u r m a n d ate s .

2000 / 2002

Client mandate customised to

exclude alcohol, gambling and adult

entertainment

1990

A number of client Shari’ah mandates

across the USA, Europe, SE Asia and

Japan

2015

Client mandate customised to

exclude tobacco

2011

Client Sukuk

2019

Client mandate customised to

exclusions relating to weapons

$ 1 0 b nO ve r $ 1 0 b i l l i o n

As s e ts u n d e r M a n a ge m e n t

O ve r 8 0 m e m b e rs o f s ta f f

$ 1 1 . 7 b nAve ra ge t re a s u r y

b a l a n c e s h e e t

4 0O ve r 4 0 ye a rs

m a n a g i n g c l i e n ts ’ a s s e ts

O f f i c e s i n Lo n d o n a n d N ew Yo r k

O u r b e l i e f s a b o u t re s p o n s i b l e b a n k i n g a n d i nve s t i n g

Re s p o n s i b l e b a n k i n g :

B a n ks s h o u ld p l ay a c e n t ra l ro le i n s t i m u l at i n g a m o re s u s ta i n a b le way o f d o i n g b u s i n e s s .

T h ey a re c e n t ra l ly p l a c e d , t h ro u g h c re d i t a n d i n ve s t m e n t d e c i s i o n s , to i n f l u e n c e a n d f u n d t h e t ra n s i t i o n o f i n d u s t r i e s to s u s ta i n a b le a p p ro a c h e s .

B a n ks s h o u ld a l s o re f le c t t h e n e e d s o f s o c i e ty. To d ay ’s s o c i e ty ex p e c ts b a n ks to b e c le a r a b o u t h ow t h e i r p ro d u c ts c re ate va l u e fo r t h e i r s ta ke h o ld e rs .

Re s p o n s i b l e i n ve s t i n g :

Wh e n p u rs u i n g t h e b e s t i n te re s ts o f o u r c l i e n ts , c o n s i d e r i n g b o t h f i n a n c i a l a n d n o n - f i n a n c i a l fa c to rs i s p a ra m o u n t w h e n a s s e s s i n g a n i n ve s t m e n t o p p o r t u n i ty. I n ve s t i n g re s p o n s i b ly, ta k i n g E SG fa c to rs i n to c o n s i d e ra t i o n a n d e n ga g i n g o n t h e s e to p i c s i s c r u c i a l fo r b o t h a s s e t ow n e rs a n d a s s e t m a n -a ge rs to m e e t t h e i r o b j e c t i ve s .

M e e t i n g o u r c l i e n ts o b j e c t i ve s a n d wi s h e s i s w h at d r i ve s u s . T h e i m p a c t o f o u r a s s e ts m u s t re f le c t t h e d e e p ly h e ld b e l i e f s o f o u r c l i e n ts a b o u t b e i n g a go o d s tewa rd o f p e o p l e a n d t h e e n v i ro n m e n t .

O u r s t rate g y

Tre a s u r y As s e t M a n a ge m e n t

O u r p u r p o s e

To p rov i d e a s e t o f ta i l o re d t re a s u r y a n d re l ate d s e r v i c e s , d e l i ve re d wi t h t h e u t m o s t re l i a b i l i ty a n d d i s c re t i o n .

To p rov i d e s p e c i a l i s t a s s e t m a n -a ge m e n t s e r v i c e s , fo c u s e d o n d e l i ve r i n g lo n g - te r m re t u r n s fo r o u r c l i e n ts .

O u r a s p i rat i o n

To b e t h e p re fe rre d t re a s u r y s e r v i c e s p rov i d e r fo r G CC -b a s e d e n t i t i e s t ra n s a c t i n g i n te r n at i o n a l ly, a n d v i c e ve rs a , w i t h i n o u r ta rge t m a r ke t .

To s c a le a n d m o b i l i s e s i g n i f i c a n t c a p i ta l i n s u p p o r t o f s u s ta i n a b l e i n ve s t m e n t s t ra te g i e s .

O u r b u s i n e s s s t rate g y i s a l i g n e d wi t h t h e p r i n c i p le s a n d o b j e c t i ve s o f s u s ta i n a b l e d eve lo p m e n t .

We h ave d eve lo p e d a s t ra te g i c p l a n to d e l i ve r o u r v i s i o n . An ove ra rc h i n g o b j e c t i ve o f o u r s t rate g i c p l a n i s to e n s u re t h at s u s ta i n a b i l i ty i s e m b e d d e d a c ro s s o u r w h o le b u s i n e s s .

Al l d ata a s at 3 1 . 1 2 . 2 0 1 9 .6

98

Tre a s u r y B u s i n e s s

Em b e d d i n g s u s ta i n a b le p r i n c i p le s i n t h e p ro d u c ts a n d s e r v i c e s o f fe re d by o u r Tre a s u r y B u s i n e s s ( M o n ey M a r ke ts a n d Fo re i g n E xc h a n ge ) i s d i f f i c u l t . H oweve r, we s t i l l c o n t r i b u te by e m b e d d i n g s u s ta i n a b i l i ty c o n s i d e rat i o n s i n o u r Tre a s u r y o p e ra t i o n s , t h ro u g h a b e s t- p ra c t i c e a p p ro a c h .

T h i s i n c l u d e s a s s e s s i n g c o u n te r p a r t i e s ’ E SG c re d e n t i a l s , wo r k i n g wi t h o u r s u p p ly c h a i n to p u t i n p l a c e i m p rove m e n ts a n d e n s u r i n g s u s ta i n a b i l i ty- re l ate d r i s ks a re a d e q u ate ly c a p t u re d a n d a s s e s s e d a s p a r t o f o u r r i s k m a n a ge m e n t a n d gove r n a n c e f ra m ewo r k .

As s e t M a n a g e m e n t

O u r o b j e c t i ve i s to o f fe r a s e t o f c a p a b i l i t i e s t h at e n a b le o u r c l i e n ts to i n ve s t re s p o n s i b ly.

We a i m to b r i n g re s p o n s i b le I n ve s t m e n t to a d i ve rs e s e t o f c l i e n ts , i n c l u d i n g ge o g ra p h i e s w h e re s u c h a p p ro a c h e s h ave h i s to r i c a l ly b e e n le s s p reva le n t . G I B ( U K ) s t r i ve s fo r c o n t i n u o u s e n h a n c e m e n t o f o u r o f fe r i n g a s a s u s ta i n a b le a n d E SG - fo c u s e d a s s e t m a n a ge r.

O u r s t rate g y

Re s p o n s i b l e I nve s t m e n t

G I B ( U K ) b e c a m e a s i g n ato r y o f t h e U n i te d N at i o n s - s u p p o r te d Pr i n c i p le s fo r Re s p o n s i b l e I n ve s t m e n t ( PR I ) i n 2 0 1 8 . O u r ove ra rc h i n g i n ve s t m e n t p h i lo s o p h y i s a l i g n e d w i t h t h e U n i te d N at i o n s Su s ta i n a b le D eve lo p m e n t G o a l s ( U N S D G s ) .

T h e ( S D G s ) a re t h e b l u e p r i n t to a c h i eve a b e tte r a n d a m o re

s u s ta i n a b le f u t u re to a l l . T h ey a d d re s s t h e g lo b a l c h a l le n ge s we fa c e,

i n c l u d i n g t h o s e re l ate d to p ove r ty, i n e q u a l i ty, c l i m ate c h a n ge,

e n v i ro n m e n ta l d e g ra d at i o n , p e a c e a n d j u s t i c e . T h e U n i te d N at i o n s

T h e S D G s

O u r i n ve s t m e n t p i l l a rs a re d i re c t ly a l i g n e d to t h e U N S D G s :

1 11 0

Re s p o n s i b l e i nve s t m e n t

1 . Key i n ve s t m e n t p i l l a r s

O u r p i l l a rs a re u s e d to s t r u c t u re a n d d r i ve o u r i n ve s t m e n t a n a lys i s .

T h ey a re a l s o u s e d to a s s e s s t h e i m p a c t o f i n ve s t m e n ts a n d to o rga n i s e e n ga ge m e n t a c t i v i t i e s .

We h ave d e r i ve d o u r p i l l a rs d i re c t ly f ro m t h e U N S D G s .

Eq u a l i ty, d i ve rs i ty a n d

h u m a n c a p i t a l d eve l o p m e n t

C l i m ate, e nv i ro n m e n t a l

a c t i o n a n d wate r

H e a l t h a n d We l l b e i n g

G ove r n a n c e a n d a c c o u n t a b i l i ty

I n n ovat i o n a n d i n f ra s t r u c t u re

2 . O u r exc l u s i o n l i s t

O u r i n ve s t m e n t p ro c e s s , a c ro s s a l l a s s e t c l a s s e s , s e e ks to s c re e n o u t d i re c t , a n d p o te n t i a l ly i n d i re c t , i n ve s t-m e n ts i n to a n y i s s u e r w h e re t h e b u s i n e s s m o d e l o r m a i n reve n u e s o u rc e c o n t rave n e s t h e re s p o n s i b l e i n ve s t m e n t t h e m e s t h at we a i m to e n a c t a n d /o r t h e wi d e r U N S D G s .

We exc l u d e t h e fo l lowi n g f ro m o u r i n ve s t m e n ts * :

1 . C o n t rove rs i a l we a p o n s2 . To b a c c o3 . A lc o h o l p ro d u c ts4 . G a m b l i n g 5 . Ad u l t e n te r ta i n m e n t 6 . T h e f i n a n c i n g , t ra d i n g a n d / o r p ro -

m o t i o n o f p o a c h i n g a n d t ra f f i c k i n g o f e n d a n ge re d s p e c i e s o f b o t h f lo ra a n d fa u n a , o r t h e d e m a n d a n d s u p p ly o f i l le ga l w i ld l i fe p ro d u c ts * *

7 . T h e p ro d u c t i o n , f i n a n c i n g t ra d i n g o r p ro m o t i o n o f t h e ex t ra c t i o n o f c o k-i n g c o a l a n d /o r t h e r m a l c o a l * *

*Ab ove exc l u s i o n s m ay n o t b e a p p l i e d to m a n d ate s t ra c k i n g a g lo b a l ly re c o g n i s e d b e n c h m a r k* * Tra d e F i n a n c e s p e c i f i c exc l u s i o n s

3 . E S G i n te g rat i o n

Alo n g s i d e m o re t ra d i t i o n a l f i n a n c i a l c r i te r i a , G I B ( U K ) s c re e n s a n d i n c o r-p o rate a b ro a d s e t o f E SG c r i te r i a t h at c a n a f fe c t a n i n ve s t m e n t .

S o m e ex i s t i n g c l i e n t m a n d ate s d o n o t fo l low t h i s a p p ro a c h . H oweve r, o u r p o l i cy i s to re c o m m e n d t h i s p ro -a c t i ve ly to c l i e n ts . We c a n , a n d d o t ra c k E SG - fo c u s e d i n d i c e s a s re q u i re d .

E SG fa c to rs re p re s e n t a n i n te g ra l p a r t o f o u r i n ve s t m e n t a n a lys i s , h e l p i n g to a s s e s s t h e lo n g - te r m s u s ta i n a b i l i ty o f a c o m p a n y a n d e f fe c t i ve ly m i t i gate r i s k .

Ea c h a s s e t c l a s s h a s i ts ta i lo re d a p p ro a c h to E SG i n te g rat i o n . Ple a s e re fe r to o u r Re s p o n s i b le I n ve s t m e n t Po l i cy fo r m o re d e ta i l .

Fi xe d I n c o m e*

O u r p r i m a r y fo c u s i s to i d e n t i f y i n ve s t m e n t r i s ks a n d o p p o r t u n i t i e s , w h i l s t p ro m o t i n g re s p o n s i b le b e h av i o u rs a m o n g s t i s s u e rs o f d e b t .

E SG c o n s i d e rat i o n s a re f u l ly i n te g rate d at b o t h a p o r tfo l i o a n d s e c u r i ty leve l w i t h i n o u r i n ve s t m e n t p ro c e s s .

B e low a re t h e key fe a t u re s o f o u r f i xe d i n c o m e p o r tfo l i o s :

6 6 %

8 6 %

2 3 %

6 6 %

7 %

o f s e c u r i t i e s h ave a n E SG rat i n g by

M SC I

O f w h i c h . . .

a re rate d B B o r h i g h e r

o f i s s u e rs a re s i g n ato r i e s o f t h e

U N G l o b a l C o m p a c t

o f i s s u e rs re p o r t t h e re g re e n h o u s e

ga s e m i s s i o n s

o f t h e p o r tfo l i o c o n s i s ts o f g re e n

b o n d s

* D ata a s at 3 1 . 1 2 . 2 0 1 9 .

1 31 2

E q u i t i e s

We u s e a n ex te n s i ve a r ray o f E SG d ata a n d a n a lys i s f ro m t h i rd p a r ty p rov i d e rs . We re c e i ve d a i ly fe e d s o f d ata a n d c o m p a n y i n fo r m a t i o n f ro m i n d u s t r y le a d i n g E SG d ata p rov i d e rs .

We eva l u a te a n d i n te g rate t h e s e to c re ate o u r p ro p r i e -ta r y s c o r i n g m e t h o d o lo g y, ge n e rat i n g c o m p a n y s c o re s at a c o m p a n y leve l .

B e low i s a n o n - ex h a u s t i ve l i s t o f o u r E SG s t rate g y c r i te r i a :

• Fi n a n c i a l ly m ate r i a l c re d e n t i a l s

• E S G c o n t rove r s i e s exc l u s i o n s

• L ow c a r b o n i n te n s i ty

• Sto c k s reve n u e a l i g n e d to S D G s

Tra d e Fi n a n c e*

We fo l low a two - t i e r a p p ro a c h :

• Tra d e F i n a n c e c o u n te r p a r t i e s a re s c o re d u s i n g a p ro p r i e ta r y E SG q u e s t i o n n a i re , b a s e d o n o u r key p i l l a rs . T h e q u e s t i o n n a i re s a re n o n -ex h a u s t i ve . T h ey h e l p a s s e s s h ow a c o u n te r p a r ty a p p ro a c h e s E SG , a n d t h e ex te n t to w h i c h i t c o n d u c ts i ts b u s i n e s s i n a s u s ta i n a b le , re s p o n -s i b le m a n n e r.

• A s e c o n d t i e r a s s e s s m e n t o c c u rs at t h e t ra n s a c t i o n a l leve l . T h i s s h o r te r q u e s t i o n n a i re i s a l s o b a s e d a ro u n d o u r key p i l l a rs . I t i s c o m p le te d by c o u n te r p a r t i e s o n b e h a l f o f o b l i -go rs . I t d r i l l s i n to t h e s p e c i f i c s o f t h e t ra n s a c t i o n a n d h ow t h e o b l i go r c o n d u c ts i ts b u s i n e s s .

• A Re d /Am b e r /G re e n s c o r i n g sys -te m i s u s e d to ra n k c o u n te r p a r t i e s . Tra n s a c t i o n s a re s c o re d o n a St ro n g, G o o d , S at i s fa c to r y o r We a k b a s i s .

4 4

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q u e s t i o n n a i re s s e n t to c o u n te r p a r t i e s

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o f A U M

o f t h e q u e s t i o n n a i re s

re c e i ve d s c o re d a c h i eve d a m b e r o r

g re e n s c o r i n g

* D ata a s at 3 1 . 1 2 . 2 0 1 9 .

1 51 4

Ac t i ve ow n e rs h i p

Ac t i ve ly e n ga g i n g wi t h o u r i n ve s te e s i s a f u n d a m e n ta l p a r t o f o u r i n ve s t m e n t p ro c e s s . By e n ga g i n g, we ga i n a d d i t i o n a l u n d e rs ta n d i n g o f m ate r i a l to p i c s to i n fo r m c o m p a n y va l u at i o n s a n d t h e i n ve s t m e n t p ro c e s s . T h i s u n d e rs ta n d i n g d r i ve s c h a n ge to i n c re a s e t h e va l u e o f o u r c l i e n ts ’ a s s e ts ove r t i m e.

As a c t i ve ow n e rs , we p ra c t i c e b o t h d i re c t a n d c o l l a b o rat i ve e n ga ge m e n t . E x p e r i e n c e d m e m b e rs o f t h e i n ve s t m e n t te a m e n ga ge d i re c t ly wi t h o u r i n ve s te e c o m p a n i e s a n d c o u n te r p a r t i e s o n a va r i e ty o f E SG to p i c s . C o l l a b o rat i ve e n ga ge -m e n t i s c o n d u c te d w i t h o t h e r a s s e t m a n a ge rs a n d t h ro u g h o u r m e m b e rs h i p s o f d i f fe re n t o rga n i s at i o n s .

We i d e n t i f i e d s eve ra l E SG t h e m e s to fo c u s o u r e n ga ge m e n t a c t i v i t i e s a n d m a x i -m i s e i m p a c t i n 2 0 1 9 .

• B u s i n e s s s t rate g y a l i g n m e n t wi t h t h e Pa r i s A g re e m e n t • Wo r k fo rc e d i ve rs i ty • E xe c u t i ve re m u n e rat i o n

I n 2 0 2 0 , we w i l l i n ve s t f u r t h e r i n o u r a c t i ve ow n e rs h i p c a p a b i l i ty.

D i re c t e n ga ge m e n t

D i re c t e n g a g e m e n t by o u r F i xe d I n c o m e te a m

I n 2 0 1 9 o u r F i xe d I n c o m e te a m e n ga ge d wi t h 1 3 i s s u e rs a n d p o te n t i a l i s s u -e rs , re p re s e n t i n g m o re t h a n a q u a r te r o f t h e p o r tfo l i o . T h e te a m e n ga ge d o n a b ro a d s e t o f E SG i s s u e s p a r t i c u l a r ly a ro u n d c l i m ate c h a n ge, n at u ra l re s o u rc e s a n d c o r p o ra te gove r n a n c e. T h e F i xe d I n c o m e te a m fo c u s e s p re d o m i n a n t ly o n e m e rg i n g m a r ke ts w h e re d ata a n d d i s c lo s u re s a re le s s p reva le n t .

T h e te a m’s e f fo r ts a i m to ra i s e awa re n e s s o f t h e i m p o r ta n c e o f E SG to i n ve s to rs a n d e n c o u ra ge a d o p t i o n o f b e s t p ra c t i c e s a ro u n d d i s c l o s u re .

O b j e c t i ve : O u r p re - i n ve s t m e n t a n a lys i s o f t h e c o m p a n y i d e n t i f i e d t h at c e r ta i n s u b s i d i a r i e s h a d fa c e d i n ve s t i ga t i o n s a n d c r i m i n a l a n d c i v i l p ro c e e d i n g s i n t h e p a s t . T h i s wa s a c le a r gove r n a n c e i s s u e. We d e te r m i n e d to u n d e rs ta n d t h e c i rc u m s ta n c e s a n d w h at m e a s u re s h a d b e e n ta ke n to p reve n t s i m i l a r i s s u e s i n t h e f u t u re .

En ga ge m e n t t i m e l i n e : • I s s u e r e n g a g e dWe ra i s e d t h e i s s u e wi t h t h e c o m p a n y ’s i n ve s to r re l at i o n s te a m , h i g h l i g h t i n g o u r c o n c e r n a b o u t t h e p o s s i b i l i ty o f s i m i l a r eve n ts o c c u rr i n g .• I s s u e r a c k n ow l e d g m e n tT h e c o m p a n y a c k n ow le d ge d o u r e n ga ge m e n t v i a c o n -s t r u c t i ve d i a lo g u e. T h ey c o m m u n i c a te d t h a t t h e i n -ve s t i gat i o n re l ate d to o n e p a r t i c u l a r c o n t ra c t wi t h a s u p p l i e r. T h at t h ey we re f u l ly c o o p e ra t i n g wi t h t h e i n ve s t i gat i o n a n d t h at o t h e r s h a re h o ld e rs h a d u n d e r-ta ke n a n i n d e p e n d e n t t h i rd p a r ty rev i ew a n d fo u n d n o t h i n g o f c o n c e r n .• E vi d e n c e o f p ro g re s sS o m e t i m e l ate r, we m e t a ga i n wi t h i n ve s to r re l a t i o n s fo r a n u p d ate. T h ey c o n f i r m e d t h at t h e re we re n o f u r-t h e r d eve l o p m e n ts i n t h e i n ve s t i gat i o n . T h e c o m p a n y n o lo n ge r p rov i d e d s e r v i c e s s i m i l a r to t h e o n e i n q u e s t i o n i n t h e i n ve s t i gat i o n . T h e c o m p a n y h a d ta ke n m e a s u re s to i m p rove gove r n a n c e wi t h a n ew C h a i r m a n o f t h e B o a rd wi t h a s t ro n g gove r n a n c e b a c k g ro u n d . T h ey a l s o i m p le m e n te d a n I SO 3 7 0 0 1 An t i - B r i b e r y M a n a ge m e n t Sys te m . • O b j e c t i ve a c h i eve dG i ve n t h e c lo s u re o f t h e i n ve s t i gat i o n a n d t h e m e a -s u re s ta ke n by t h e c o m p a n y to i m p rove gove r n a n c e ( w h i c h h a s b e e n re c o g n i s e d w i t h a n I SO c e r t i f i c a t i o n ) , we b e l i eve t h e o b j e c t i ve wa s a c h i eve d .

C a s e s t u d y : S u c c e s s f u l e n g a g e m e n t w i t h a B ra z i l i a n u t i l i t i e s c o m p a n y to d r i ve i m p rove m e n t s i n g ove r n a n c e p ra c t i c e s .

Governance & Accountability

Climate & Environmental Action and Water

Innovation and Infrastructure

Meeting

Call

Email

1. Issuer Engaged

2. Issuer Acknowledgement

3. Evidence Of Progress

4. Objectives Reached

Held in Portfolios

Not Held in Portfolios

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50%

60%

70%

80%2019 - ESG Engagement Summary

Engagement topic Engagement type Engagement stage Engagement portfolio type

1 71 6

D i re c t Tra d e Fi n a n c e e n g a g e m e n t

T h e Tra d e F i n a n c e te a m g ra d e t h e c o u n te r p a r ty q u e s t i o n n a i re s by g i v i n g a Re d /Am b e r /G re e n s c o re . T h e s e s c o re s a re u s e d to ra n k c o u n te r p a r t i e s , w h e re t ra n s -a c t i o n s a re s c o re d o n a St ro n g, G o o d , S at i s fa c to r y o r We a k b a s i s .

C o u n te r p a r t i e s m a r ke d a s Re d a n d Am b e r m ay b e o n - b o a rd e d , w i t h a n u n d e rs ta n d i n g t h at t h e Tra d e F i n a n c e te a m wi l l wo r k wi t h t h e s e c o u n te r p a r t i e s to a g re e a p l a n to i m p rove t h e i r o p e rat i o n s . T h e Tra d e F i n a n c e te a m s u p p o r t t h e s e c o u n te r p a r t i e s i n t h e i r m i s s i o n to i m p rove t h e i r o p e rat i o n s by p rov i d i n g g u i d a n c e.

C o u n te r p a r t i e s rev i ew ta ke s p l a c e o n a n a n n u a l b a s i s . As p a r t o f t h e a n n u a l rev i ew, t h e p ro g re s s o f t h e Re d a n d Am b e r c o u n te r p a r t i e s i s a s s e s s e d .

C o l l a b o rat i ve e n g a g e m e n t

D i re c t e n ga ge m e n t i s b e s t s u p p le m e n te d by j o i n t i n i t i at i ve s leve ra g i n g g ro u p s o f i n ve s to rs j o i n i n g fo rc e s .

We c o l l a b o rate wi t h o t h e r a s s e t ow n e rs a n d a s s e t m a n a ge rs to i m p rove o u tc o m e s a n d e n h a n c e t h e e f fe c t i ve -n e s s o f e n ga ge m e n t a c t i v i t i e s .

O u r a p p ro a c h i s to p a r t i c i p ate i n c o l l a b o rat i ve e n ga ge m e n t i n i t i at i ve s w h o s e i n te n d e d o b j e c t i ve s a l i g n wi t h o u r e n ga ge m e n t fo c u s t h e m e s o r m o re b ro a d ly wi t h o u r key p i l l a rs .

I n 2 0 1 9 , we b e c a m e a m e m b e r o f T h e I n s t i t u t i o n a l I n ve s to rs G ro u p o n C l i m ate C h a n ge ( I I G CC ) .

T h e I I G CC a l lows u s to j o i n e n ga ge -m e n ts at a s e c to r leve l , e n ga ge wi t h gove r n m e n ts a n d re l a te d o rga n i s a -t i o n s , a s we l l a s wi t h i n d i v i d u a l c o m -p a n i e s .

An exa m p le o f c o l l a b o rat i ve e n ga ge -m e n t a c t i v i ty f ro m t h e I I G CC i s t h at we we re s i g n ato r i e s to a le tte r ( a l o n g wi t h 4 4 o t h e r Eu ro p e a n i n s t i t u t i o n a l i n ve s to rs ) to E U le a d e rs o n t h e 2 0 5 0 n e t ze ro ta rge t .

22

21 29%

71%

Questionnaires

Answers not received Answers received Amber Green

4th December 2019

Open letter to EU leaders

On the eve of the December European Council we write to you as members of the Institutional Investors Group on Climate Change (IIGCC), a body of over 190 European institutional investors overseeing more than €28 trillion in assets globally.

The upcoming Council marks a turning point in the EU, as a new Commission mandate begins and leaders reflect on the bloc’s future. Within your discussions, it is vital that sufficient importance is attached to the topic of climate change.

Collectively we direct trillions of euros with a view to ensuring sound financial returns for our beneficiaries. We recognise the significant financial risks posed by climate change as well as the enormous economic opportunities provided by low-carbon and climate-resilient technologies, markets and business models.

The ongoing public debate in both Brussels and national capitals on the climate emergency highlights the urgent need to act. It is no secret that investors favour long-term certainty and we therefore strongly support a net-zero emissions target for the EU, to be achieved by 2050 at the latest, and the alignment of all relevant EU legislation to the temperature reduction goals set out in the Paris Agreement.

The necessity and benefits of the adoption of such a target are clear. For example, EU analysis has shown that a net-zero emissions target can be expected to deliver an estimated 2% increase in GDP across member states by 2050, in addition to the creation of 2.1 million new jobs. The transition towards net-zero emissions will also provide an important opportunity to further strengthen the transformation of Europe’s economy, showcasing member states as global leaders in low and zero emission technologies and services while also supporting benefits such as innovation, improved resilience to extreme weather events and increased energy security. We are cognisant of the fact that such ambition will be challenging to attain. The changes to economies across the EU will be significant, but the benefits outlined above unmistakably outweigh the impacts of insufficient action. The science – and the market fundamentals – are clear: the costs of inaction will be catastrophic. The solution is in well-designed policies that allow private finance to flow, supporting public efforts and exploiting huge investment opportunities. The EU has to date played a strong global leadership role in tackling climate change. Following the UN Secretary General’s Climate Action Summit in September, and as we approach key milestones in the international climate negotiations, it is clear that the stakes could not be higher. Without greater action, the world is on track to see long-term temperature rises of around 4°C, with $23 trillion of associated global economic losses over the next 80 years. This permanent economic damage would be three or four times the scale of the impacts of the 2008 global financial crisis. Conversely, greater action on climate change could deliver $26 trillion in global economic benefit to 2030. As investors, we are already stepping up our commitments to sustainable and responsible investment, as well as putting pressure on high-emitting companies to reduce their emissions. Our experience

1 91 8

Su s ta i n a b i l i ty s i ts at t h e h e a r t o f G I B ( U K ) . We c o n s i d e r s u s ta i n a b i l i ty i n o u r

s t rate g y a n d a l l o u r p ra c t i c e s ; b e i t i n ve s t m e n ts o r o p e rat i o n s

We a c k n ow le d ge t h e s c i e n t i f i c c o n s e n s u s , d r i ve n by t h e I n te rgove r n m e n ta l Pa n e l o n C l i m a te C h a n ge, t h at c l i m ate c h a n ge, a n d e s p e c i a l ly g lo b a l wa r m i n g, i s a re a l i ty. We a re a l i g n e d wi t h t h e U K Pa r l i a m e n t ’s d e c l a rat i o n t h at h u m a n i ty i s fa c i n g a c l i m ate e m e rge n cy.

C l i m ate re l ate d r i s ks a f fe c t d i f fe re n t a s p e c t o f o u r b u s i n e s s i n d i f fe re n t ways . T h ey c re ate b o t h e n v i ro n m e n ta l a n d f i n a n c i a l r i s ks . We a l s o re a l i s e t h at t h e e f fe c ts o f c l i m ate c h a n ge o n a b u s i n e s s a re n o t o n ly p h ys i c a l . Su c h e f fe c ts c a n m a n i fe s t i n t h e s h o r t , m e d i u m a n d a l s o lo n g te r m .

As p a r t o f o u r s u p p o r t fo r t h e Ta s k Fo rc e fo r C l i m a te Re l a te d D i s c lo s u re s ( TC F D ) , we d i s c lo s e c l i m ate re l ate d f i n a n c i a l d i s c lo -s u re s i n l i n e wi t h TC F D re c o m m e n d at i o n s . Su c h d i s c lo s u re s m ay b e vo l u n ta r y, b u t t h ey h e l p s u s a n d t h e i n d u s t r y u n d e rs ta n d m ate r i a l c l i m ate re l ate d r i s ks a n d d ev i s e m e a s u re s to m i t i gate a n d re d u c e t h e m .

1 8 1 9

2 12 0

Envi ro n m e n t a l - c l i m ate re l ate d d i s c l o s u re s

C l i m ate re l ate d re s p o n s i b i l i t i e s a re exe c u te d t h ro u g h a n u m b e r o f re g u l a r a c t i v i t i e s . Fo r exa m p le , t h ro u g h t h e rev i ew, d i s c u s s i o n a n d a p p rova l o f re g -u l a r a ge n d a i te m s s u c h a s t h e I n te r n a l C a p i ta l Ad e q u a cy As s e s s m e n t Pro c e s s ( I CA A P ) , c l i m ate - re l ate d s c e n a r i o s a n d s t re s s te s ts , a n d t h e b ro a d e r s t rate g y w h i c h i n c l u d e s c l i m ate r i s ks a n d o p p o r t u n i t i e s . G I B ( U K ) ’s C EO rev i ews a n d a p p rove s c l i m ate re l ate d m e t r i c s a n d ta rge ts s u c h a s c a r b o n ta rge ts fo r o u r o p e rat i o n s .

St rate g y d i s c l o s u re s

O u r v i s i o n i s to o f fe r E SG c a p a b i l i t i e s a n d to s c a le c a p i ta l i n s u p p o r t o f s u s ta i n a b le i n ve s t m e n t s t rate g i e s , i n c l u d i n g e m b e d d i n g e n v i ro n m e n ta l c o n s i d e rat i o n s a c ro s s a l l a s s e ts .

T h i s a l lows u s to o f fe r c l i e n ts s o l u -t i o n s t h at h e l p t h e t ra n s i t i o n to a low-e r- c a r b o n e c o n o m y – a c r i t i c a l s h o r t-to - m e d i u m te r m o p p o r t u n i ty.

A m e d i u m - to - lo n g te r m s t rate g i c r i s k h a s b e e n i d e n t i f i e d re l at i n g to t h e re l i a n c e o f s o m e c l i e n ts o n o i l- re l a te d reve n u e s , g i ve n t h e d r i ve to re d u c e c a r b o n u s e.

S c e n a r i o m o d e l l i n g s u g ge s te d t h at t h e ex p o s u re o f o u r p o r tfo l i o s a n d t ra d e d a s s e ts to c l i m ate re l ate d r i s ks wa s re l at i ve ly low i n 2 0 1 9 .

C l i m ate - re l ate d o p p o r t u n i t i e s a n d r i s ks h ave b e e n ta ke n i n to a c c o u n t i n s t rate g i c p l a n n i n g.

Fo r exa m p le , o u r b u s i n e s s p l a n i n -c l u d e s s eve ra l o b j e c t i ve s re l at i n g to e m b e d d i n g s u s ta i n a b i l i ty c o n s i d e r-at i o n s a c ro s s t h e f i r m . Fu r t h e r, o u r b a l a n c e d s c o re c a rd ( w h i c h i s u s e d to a s s e s s o u r p e r fo r m a n c e a ga i n s t o u r o b j e c t i ve s ) i n c l u d e s s o m e re leva n t s u s ta i n a b i l i ty a n d c l i m ate re l ate d K PI s .

A l t h o u g h b u d ge t p l a n n i n g d o e s n o t i n c l u d e s p e c i f i c c l i m ate re l ate d r i s ks , c l i m ate c h a n ge r i s k wa s i n te g rate d i n to o u r I CA A P s c e n a r i o s . T h e I CA A P s c e n a r i o a n a lys i s wa s i n te g rate d i n to t h e s t rate g y p l a n n i n g p ro c e s s .

I n a d d i t i o n , a s s e s s m e n t o f c l i m ate r i s ks h a s b e e n i n c l u d e d i n s u p p l i e r a s s e s s m e n t a n d s e l e c t i o n p ro c e s s .

Su s ta i n a b i l i ty c o n s i d e rat i o n s we re i n c l u d e d i n t h e s e le c t i o n c r i te r i a fo r o u r n ew o f f i c e b u i ld i n g s e le c t i o n a n d o f f i c e f i t- o u t .

G ove r n a n c e d i s c l o s u re s

U n d e rs ta n d i n g a n d m i t i gat i n g c l i m a te re l ate d r i s ks i s a key p r i o r i ty fo r o u r B o a rd a n d s e n i o r l e a d e rs h i p.

O u r G ove r n a n c e Fra m ewo r k wa s u p d ate d to s e t o u t c l i m a te re l ate d r i s k ove rs i g h t , a c c o u n ta b i l i ty, ro le s a n d re s p o n s i b i l i t i e s . Fo r exa m p le , t h e B o a rd wa s a s s i g n e d wi t h re s p o n s i b i l i ty fo r rev i ew i n g a n d a p p rov i n g G I B ( U K ) m a n a ge m e n t ’s p l a n to m a n a ge f i n a n -c i a l r i s ks f ro m c l i m ate c h a n ge a n d ove rs e e i n g t h e i r exe c u t i o n .

T h e Au d i t a n d R i s k O ve rs i g h t C o m m i t-te e wa s a s s i g n e d t h e re s p o n s i b i l i ty fo r e n s u r i n g t h a t f i n a n c i a l r i s ks f ro m c l i m a te c h a n ge a re e m b e d d e d wi t h i n t h e r i s k m a n a ge m e n t f ra m ewo r k . T h e C h i e f R i s k O f f i c e r ( C R O ) i s re s p o n s i b le fo r c l i m a te - re l ate d r i s k u n d e r t h e S e n i o r M a n a ge rs Re g i m e.

A p l a n to i n te g rate f i n a n c i a l r i s ks f ro m c l i m a te c h a n ge i n to o u r r i s k m a n a ge -m e n t f ra m ewo r k i s i n p l a c e a t G I B ( U K ) . T h i s i s rev i ewe d re g u l a r ly by t h e B o a rd .

O u r B o a rd o f D i re c to rs a n d E xe c u t i ve s a re fa m i l i a r w i t h t h e to p i c o f f i n a n c i a l c l i m a te r i s k , a n d ke p t u p to d ate wi t h ta rge te d t ra i n i n g s e s s i o n s .

An a n n u a l rev i ew i s c o n d u c te d to a s s e s s h ow c l i m ate re l ate d re s p o n s i -b i l i t i e s h ave b e e n d i s c h a rge d .

T h i s i n c l u d e s rev i ews o f i n d i v i d u a l p e r fo r m a n c e a n d t h e e f fe c t i ve n e s s o f c o m m i tte e s .

We h ave a n u m b e r o f p o l i c i e s a n d p ro -c e d u re s i n s u p p o r t o f o u r c l i m a te a n d s u s ta i n a b i l i ty a c t i v i t i e s .

R i s k m a n a g e m e n t d i s c l o s u re s

O u r r i s k m a n a ge m e n t f ra m ewo r k i n -c o r p o rate s c l i m ate - re l a te d r i s ks .

C o n s i s te n t wi t h t h a t , c l i m a te re l ate d r i s ks a re i n c l u d e d i n re leva n t r i s k p o l i c i e s a n d a s s e s s m e n ts , s u c h a s t h e I n ve s t m e n t R i s k Fra m ewo r k a n d Key a n d Em e rg i n g R i s ks re g i s te rs . Re g u l a r i n fo r m at i o n i s s h a re d w i t h t h e re leva n t gove r n a n c e b o d i e s a n d s e n i o r m a n a ge m e n t , a s p a r t o f s ta n d a rd m a n -a ge m e n t i n fo r m at i o n .

Fu r t h e r m o re, c l i m a te re l a te d r i s ks we re i n c l u d e d i n o u r P i l l a r 3 d i s c lo -s u re s . T h e s e d i s c lo s u re s a re b a s e d o n t h e I CA A P.

S c e n a r i o te s t i n g : G I B ( U K ) u n d e r ta ke s s c e n a r i o te s t i n g o f c l i m a te - re l a te d r i s ks to m e a s u re t h e i m p a c t o f p h ys i -c a l a n d t ra n s i t i o n r i s k o n o u r b u s i n e s s a n d o n s p e c i f i c p o r tfo l i o s .

Physical Risks

Physical Risks

Lorem ipsumLorem ipsum

Physical Risks

Lorem ipsumLorem ipsum

Overview “Smooth” Transition “Too late, too sudden” Transition “Full Damage”

Weather Event

Floods Storms Drought Wildfire

Transition Risks

Implied by our collective e�orts to mitigate these Climate change (Policy Risks, Technology Risks and Legal Risks) and characterised by their sectoral/geographical specificity and

mid to long-term nature.

Implied by the incremental e�ects of Climate change (Incremental E�ects - change in the mean and variability of climate patterns - and Acute E�ect -

change in extreme weather events frequency and/or intensity) characterised by their geographical and sectoral specificity as well as their long-term horizon.

Early, slow and gradual transition to a low-carbon economy.

Late and abrupt implementation of constraints on the use of carbon

intensive energy resulting in a costly “hard landing”.

Slow worsening physical manifestations of climate

change.

Increase of extreme weather events and climate related disasters due to climate change.

2 32 2

E xa m p l e s c e n a r i o te s t

We c o n d u c te d a c l i m ate c h a n ge s c e n a r i o te s t o n o n e o f o u r Tre a s u r y p o r tfo l i o s a n d key F i xe d I n c o m e p o r tfo l i o s . T h e a i m wa s to m e a s u re t h e i m p a c t o f p h ys i -c a l a n d t ra n s i t i o n r i s k o n o u r b u s i n e s s .

T h e s t re s s te s t wa s c o n d u c te d by t ra n s l at i n g t h e i m p a c t o f c l i m ate re l ate d e n -v i ro n m e n ta l a n d e c o n o m i c r i s ks i n to f i n a n c i a l r i s ks , u s i n g d i f fe re n t m a r ke t r i s k fa c to rs . T h e m a r ke t r i s k fa c to rs i n c l u d e d c h a n ge s i n s h a re p r i c e s , c h a n ge s i n c o r p o ra te b o n d s p re a d s a n d c h a n ge s i n s ove re i g n b o n d s p re a d s .

We m o d e l l e d s h o c ks to t h e m a r ke t r i s k fa c to rs u s i n g s c e n a r i o s d eve lo p e d f ro m t h e I n te r n a t i o n a l En e rg y A ge n cy B eyo n d Two D e g re e s e n e rg y t ra n s i t i o n s c e n a r-i o s . T h e s e s c e n a r i o s m e a s u re d t h e ex p o s u re o f o u r p o r tfo l i o s to b o t h p h ys i c a l a n d t ra n s i t i o n r i s ks , a n d e s t i m a te d t h e s t re s s e d i m p a c t o n p ro f i ta b i l i ty.

Fo r t h e p u r p o s e s o f o u r a n a lys i s , we d e te r m i n e d t h at t h e “ to o l ate , to o s u d d e n” t ra n s i t i o n s c e n a r i o a n d t h e “ we at h e r eve n t” p h ys i c a l s c e n a r i o we re b e s t s u i te d to o u r s t re s s te s ts . T h e “ to o l ate , to o s u d d e n” i s b a s e d o n a h o r i zo n o f 2 0 2 5 . T h e we a t h e r eve n t s c e n a r i o i s b a s e d o n a h o r i zo n o f i m m e d i ate i m p a c t .

T h e s t re s s te s ts c o n c l u d e d t h at o u r p o r tfo l i o s ’ ex p o s u re to c l i m ate re l ate d r i s ks wa s re l a t i ve ly low. N o n e t h e le s s , we w i l l c o n t i n u e to m o n i to r a n d c o n d u c t re g u -l a r s c e n a r i o m o d e l l i n g a s p a r t o f o u r s t re s s te s t i n g a p p ro a c h .

M e t r i c s a n d t a rg e t s d i s c l o s u re s

I n 2 0 1 9 , we e m i tte d a p p rox i m ate ly t CO 2 e 4 9 5 . 4 o f c a r b o n . T h i s e q u ate s to t CO 2 e 6 p e r F T E . T h e b re a kd ow n o f o u r e m i s s i o n s a re d e ta i le d b e low :

2 0 1 9 t CO 2 e*

S c o p e 1 0

S c o p e 2

Ele c t r i c i ty c o n s u m e d i n o f f i c e a n d d ata re c ove r y s i te s 7 3 . 4

S c o p e 3

Ele c t r i c i ty c o n s u m e d T& D to G I B o f f i c e s 6 . 2

M ate r i a l u s e 5 . 7

Wa s te d i s p o s a l 0 . 1

Em p loye e b u s i n e s s t rave l - A i r 3 7 6 . 1

Em p loye e b u s i n e s s t rave l - C o m m u te 3 . 1

Em p loye e b u s i n e s s t rave l - Ta x i 0 . 7

Em p loye e b u s i n e s s t rave l - H o te l 3 0 . 0

To t a l 4 9 5 . 4

As a s e r v i c e b u s i n e s s , i t i s n o t s u r p r i s i n g t h at ove r 7 5 % o f G I B ( U K ) ’s ove ra l l e m i s s i o n s c a m e f ro m s c o p e 3 ( i n d i re c t ) e m i s s i o n s . T h e ove r w h e l m i n g m a j o r i ty c a m e f ro m b u s i n e s s a i r t rave l . Fo l lowi n g a i r t rave l , o u r l a rge s t c o n t r i b u to r to e m i s s i o n s wa s e le c t r i c i ty u s e ( b o t h s c o p e 2 a n d 3 ) .

We a re c o m m i tte d to re d u c i n g c a r b o n e m i s s i o n s . S eve ra l i n i t i a t i ve s we re i n p l a c e d u r i n g 2 0 1 9 to re d u c e n e t e m i s s i o n s , i n c l u d i n g :

• Pa r t i c i p at i o n i n a c a r b o n o f f s e tt i n g s c h e m e ; • Ap p rov i n g a p l a n to re d u c e t h e a m o u n t o f b u s i n e s s t rave l , w h e re p o s s i b le ;• Revi ewi n g e n e rg y re d u c t i o n a n d c o n s e r vat i o n c r i te r i a fo r o u r n ew o f f i c e ;• S eve ra l i n i t i at i ve s a i m e d at re d u c i n g t h e vo l u m e o f p a p e r c o n s u m e d wi t h i n

t h e o f f i c e ;• I n i t i at i ve s to re d u c e t h e a m o u n t o f p l a s t i c s u s e d wi t h i n t h e o f f i c e . C a r b o n t a rg e t s :

We a re c o n s c i o u s o f t h e i m p a c t o f o u r o p e rat i o n s o n t h e e n v i ro n m e n t . We a re s e tt i n g o u rs e lve s a m b i t i o u s c a r b o n re d u c t i o n ta rge ts a s fo l lows :

• By 2 0 3 0 , re d u c e ove ra l l c a r b o n e m i s s i o n s by 5 0 % , u s i n g 2 0 1 9 a s a b a s e l i n e ; a n d

• By 2 0 3 0 re d u c e c a r b o n e m i s s i o n s by 5 0 - 5 5 % p e r F T E , u s i n g 2 0 1 9 a s a b a s e l i n e .

O u r a i m i s to f ro n t lo a d t h e m a j o r i ty o f o u r re d u c t i o n i n e m i s s i o n s re d u c t i o n by 2 0 2 5 .

We a l s o c o m m i tte d to b e i n g c a r b o n n e u t ra l f ro m 2 0 1 9 o n wa rd s a n d e n ro l le d i n a s c h e m e to o f f s e t a l l o f o u r 2 0 1 9 e m i s s i o n s .

* O u r c a r b o n e m i s s i o n s a re e s t i m ate s .

2 52 4

S D G l i n ke d e nv i ro n m e n t a l i n i t i at i ve s

We a re c o m m i tte d to re d u c i n g t h e i m p a c t o f o u r o p e rat i o n s o n t h e e n v i ro n m e n t . I n a d d i t i o n to c l i m ate re l a te d f i n a n c i a l d i s c lo s u re s , we s h a re s eve ra l exa m p le s t h at ty p i f y o u r i n i t i at i ve s to re d u c e o u r o p e rat i o n s’ e n v i ro n m e n ta l fo o t p r i n t .

C a s e s t u d y : G I B ( U K ) ’s j o u r n ey to e l i m i n at i o n o f s i n g l e - u s e p l a s t i c s

We a re c o m m i tte d to e l i m i n at i n g t h e u s e o f s i n g le u s e p l a s t i c s . G I B ( U K ) s to p p e d t h e p ro c u re m e n t o f s i n g le u s e p l a s t i c c u p s a n d s i n g le u s e p l a s t i c c u t le r y i n 2 0 1 9 . T h i s re s u l te d i n t h e re d u c t i o n o f s i n g le - u s e p l a s t i c by a ro u n d 9 0 k g c o m p a re d to 2 0 1 8 .

C a s e s t u d y : G I B N Y wate r b o tt l e re d u c t i o n b u tte r f ly e f fe c t

I n 2 0 1 9 , G I B N Y m a d e t h e c o n s c i o u s d e c i s i o n to sw i tc h f ro m p l a s t i c wate r b o tt le s to a m o re e n v i ro n m e n ta l ly f r i e n d ly o f fe r i n g – b oxe d wate r. At f i rs t t h i s wa s a c o s t ly d e c i s i o n g i ve n t h e o n ly p ro d u c t t h e o f f i c e c o u l d s o u rc e wa s 4 t i m e s m o re ex p e n s i ve t h a n p l a s t i c b o tt le s .

Lo c ate d i n a m i d tow n M a n h atta n s kys c ra p e r t h e o f f i c e ro u t i n e ly o f fe rs b eve ra ge s to v i s i to rs . D u r i n g t h e c o u rs e o f t h e i r p a s s a ge a m o n g s t te n a n ts , v i s i to rs wo u ld c o m -m e n t p o s i t i ve ly w h e n t h ey re c e i ve d t h e b oxe d wate r. En v i ro n m e n ta l ly c o n s c i o u s b e h av i o u r s p re a d s fa s t a n d a c c o rd i n g to G I B’s N Y o f f i c e M a n a ge r “ we’ ve h e a rd t h at b e c a u s e o f o u r a c t i o n s t h e e n t i re b u i ld i n g n ow s o u rc e s b oxe d i n s te a d o f p l a s t i c wate r. ”

T h e i n c re a s e d d e m a n d fo r b oxe d wate r le d to o f f i c e s u p p ly s to re W. B . M a s o n c re at i n g t h e i r ow n p ro d u c t—B l i z za rd b oxe d wate r at a c o s t e q u i va le n t to p l a s t i c o f-fe r i n g s . B oxe d wate r i s b e tte r fo r t h e e n v i ro n m e n t , h av-i n g a 6 4 % lowe r c a r b o n fo o t p r i n t , u s e s 4 3 % le s s fo s s i l f u e l a n d h a s a 1 , 0 8 4 % lowe r i m p a c t o n o u r ozo n e. T h e b e n e f i ts ex te n d b eyo n d t h e e n v i ro n m e n t to o – c e r ta i n b oxe d wate r s u p p l i e rs b u y exc e s s s p r i n g wate r f ro m s m a l l c o m m u n i t i e s at 6 t i m e s t h e m u n i c i p a l wate r rate , i n j e c t i n g m o n ey i n to t h e i r lo c a le .

C a s e s t u d y : f l i g h t s o f f s e t s c h e m e

G I B ( U K ) p a r t i c i p ate s i n a c a r b o n o f f s e tt i n g s c h e m e a i m e d to o f f s e t c a r b o n e m i s s i o n s f ro m f l i g h ts .

I n 2 0 1 9 , G I B ( U K ) p l a n te d 6 9 7 t re e s to o f f s e t i ts 2 0 1 8 f l i g h ts e m i s s i o n s . T h e t re e s we re p l a n te d a c ro s s e i g h t d i f fe re n t l o c a t i o n s i n t h e U K . Wh i le we o f f s e t o u r 2 0 1 8 e m i s s i o n s f ro m f l i g h ts o n ly, we d e c i d e d to o f f s e t a l l o f o u r e m i s s i o n s f ro m 2 0 1 9 o n wa rd s .

I n a d d i t i o n to o f f s e tt i n g o u r e m i s s i o n s f ro m f l i g h ts , t h i s i n i t i a t i ve a i m s to re d u c e e m i s s i o n s f ro m d e fo re s tat i o n a n d fo re s t d e g ra d at i o n . T h i s i n i t i at i ve c o n t r i b u te s to two U N S D G s ; c l i m ate a c t i o n a n d l i fe o n l a n d .

2 72 6

S o c i a l

We s t ro n g ly b e l i eve i n e t h i c a l wo r k p l a c e p ra c t i c e s . O u r wo r k p l a c e p ra c t i c e s a n d i m p a c t ex te n d b eyo n d o u r e m p loye e s ; t h ey ex te n d to o u r s u p p l i e rs , t h i rd p a r t i e s , o u r c o m m u n i t i e s a n d o u r c l i e n ts .

We b e l i eve t h a t o u r wo r k p l a c e p ra c t i c e s c a n c o n t r i b u te to t h e a c h i eve m e n t o f t h e S D G s . T h e fo l l ow i n g s e c t i o n lo o ks at s o m e o f t h e p ra c t i c e s t h at a i m to c o n t r i b u te to t h e a c h i eve m e n t o f t h e fo l lowi n g S D G s :

• S D G 1 : N o p ove r ty • S D G 2 : Ze ro h u n ge r • S D G 5 : G e n d e r e q u a l i ty • S D G 8 : D e c e n t wo r k a n d e c o n o m i c g row t h

O u r p e o p l e

We d i re c t ly e m p loye d 8 3 e m p loye e s a c ro s s o u r o f f i c e s i n Lo n d o n a n d N ew Yo r k ( e n d 2 0 1 9 d ata ) . O u r c o l le a g u e s a re o u r m o s t va l u e d a s s e t . O u r p r i o r-i ty i s to a tt ra c t , re ta i n a n d d eve lo p o u r te a m to d e l i ve r t h e i r m a x i m u m p o -te n t i a l . We a i m to b e a n e m p loye r o f c h o i c e .

L e a r n i n g a n d d eve l o p m e n t

We b e l i eve t h at i n ve s t i n g i n o u r te a m y i e ld s a n u m b e r o f p o s i t i ve i m p a c ts . Fro m a n o rga n i s at i o n a l p e rs p e c t i ve , o u r le a r n i n g a n d d eve lo p m e n t p ro g ra m e q u i p s o u r c o l le a g u e s wi t h t h e k n ow l e d ge, s k i l l s a n d ex p e r i e n c e to a c h i eve t h e i r o b j e c t i ve s , a n d to o p e rate i n l i n e wi t h a l l re leva n t s ta n d a rd s a n d re g u l at i o n s .

I n 2 0 1 9 , o u r l e a r n i n g a n d d eve lo p m e n t p ro g ra m i n c l u d e d t h e fo l l owi n g :

• A n u m b e r o f c o m p l i a n c e t ra i n i n g m o d u le s ; c o n d u c t r i s k ove r v i ew, a n t i - m o n ey l a u n d e r i n g , f ra u d awa re -n e s s , a n t i b r i b e r y a n d c o rr u p t i o n , c o n f l i c ts o f i n te re s t , e s c a l at i o n a n d w h i s t le b lowi n g a n d o p e rat i o n a l r i s k * *

• E SG s p e c i f i c t ra i n i n g ; s o c i a l ly re -s p o n s i b le i n ve s t i n g , ge tt i n g s ta r te d i n re s p o n s i b le i n ve s t i n g , C FA U K c e r t i f i c ate i n E SG i n ve s t i n g * *

• Q u a l i f i c at i o n s p o n s o rs h i p s ; C FA leve l s 1 a n d 2 , C I PM , I FQ, F R M a n d AC I D e a l i n g C e r t i f i c ate

• O n e Yo u n g Wo r ld Su m m i t s p o n s o rs h i p

I n a d d i t i o n to t h e t ra i n i n g p ro g ra m m e s a n d q u a l i f i c at i o n s p o n s o rs h i p, G I B ( U K ) c o l le a g u e s e n j oy a c c e s s to a n u m b e r o f i n f l u e n t i a l s p e a ke rs i n t h e s u b j e c t o f s u s ta i n a b i l i ty. T h e s e s p e a ke rs a re i n v i te d to G I B ( U K ) o f f i c e s a b o u t o n c e a q u a r te r to s h a re t h e i r k n ow le d ge. Atte n d a n c e i s a lways h i g h .

D i ve r s i ty a n d i n c l u s i o n

We re c o g n i s e t h e i m p o r ta n c e o f h av i n g a wo r k p l a c e t h at i s d i ve rs e a n d i n c l u -s i ve o f a l l . We wa n t G I B ( U K ) to b e a p l a c e w h e re a l l e m p loye e s a re va l u e d a n d h ave e q u a l a c c e s s to o p p o r t u n i t i e s .

We a re c o m m i tte d to p rov i n g e q u a l e m p l oy m e n t o p p o r t u n i t i e s to a l l o u r e m p loye e s a n d p o te n t i a l e m p loye e s . We d o n o t to le rate d i s c r i m i n a to r y p ra c t i c e s o n t h e b a s i s o f s ex , ge n d e r re a s s i g n m e n t , m a r i ta l s ta t u s o r c i v i l p a r t n e rs h i p s , b e i n g p re g n a n t o r o n m ate r n i ty le ave, ra c e ( i n c l u d i n g e t h n i c i ty, n at i o n a l i ty a n d c o lo u r ) , d i s a b i l i ty, s ex u a l o r i e n tat i o n , re l i g i o n o r b e l i e f, a ge o r a n y s tat u s t h at i s p ro te c te d a s a m atte r o f l aw.

As p a r t o f o u r d i ve rs i ty a n d i n c l u s i o n a ge n d a , a l l e m p l oye e s we re e n ro l le d i n a n i n - h o u s e d i ve rs i ty t ra i n i n g wo r ks h o p.

Fu r t h e r i n 2 0 1 9 , we h ave ex te n d e d o u r s u p p o r t to t h e Va l u a b le 5 0 0 . T h e Va l u a b le 5 0 0 i s a n i n i t i at i ve t h at a i m s to m a ke d i s a b i l i ty i s s u e s a f i r m p a r t o f t h e b u s i n e s s le a d e rs h i p a ge n d a .

E m p l oye e e n g a g e m e n t

2 0 1 7 2 0 1 8

Em p l oye e p a r t i c i p a t i o n p e rc e n ta ge 7 5 % 7 0 %

G I B ( U K ) s e t u p a Sta f f C o m m i tte e i n 2 0 1 9 to fa c i l i tate c o m m u n i c a t i o n b e -twe e n e m p loye e s a n d t h e E xe c u t i ve C o m m i tte e, a n d to s u p p o r t e n ga ge m e n t a c ro s s t h e f i r m .

T h e Sta f f C o m m i tte e h a s p ro p o s e d a n u m b e r o f i n i t i a t i ve s i n t h e c o u rs e o f t h e ye a r i n c l u d i n g :

• La u n c h o f a n i d e a a n d s u g ge s t i o n p o r ta l to e n c o u ra ge c o l le a g u e s to vo i c e t h e i r i d e a s a n d c o n c e r n s e i t h e r a n o n y m o u s ly o r n o t

• I n t ro d u c t i o n o f a 3 6 0 d e g re e fe e d b a c k exe rc i s e a c ro s s t h e b a n k to i n t ro d u c e p e e r rev i ew a n d to i d e n t i f y i s s u e s a n d o u t p e r fo r m a n c e

• I m p le m e n tat i o n o f a n ex p e n s e s rev i ew i n w h i c h p o te n t i a l s av i n g s a c ro s s t h e b u s i n e s s we re i d e n t i f i e d

• D e l i ve r y o f m a n a ge m e n t t ra i n i n g to a l l L i n e M a n a ge rs

* * G I B U K t ra i n i n g p l a tfo r m s ta ke b o t h a n o n l i n e fo r m at a n d a c l a s s ro o m fo r m a t

C a s e s t u d y : O n e Yo u n g Wo r l d S u m m i t s p o n s o r s h i pG I B ( U K ) s p o n s o re d fo u r e m p l oye e s to atte n d t h e O n e Yo u n g Wo r l d Su m m i t t h at to o k p l a c e i n Lo n d o n . T h e s u m m i t a i m s to c o n n e c t yo u n g l e a d e rs to fo s te r m o re re s p o n s i b l e a n d e f fe c t i ve l e a d e rs h i p i n o rd e r to ta c k l e s o m e o f t h e wo r l d ’s m o s t p re s s i n g i s s u e s . I n 2 0 1 9 , t h e s u m m i twa s atte n d e d by 2 , 0 0 0 d e l e gate s f ro m 1 9 6 c o u n t r i e s .

G I B ( U K ) O n e Yo u n g Wo r l d te a m h ave p u t fo r wa rd a n u m b e r o f i n i t i at i ve s o n t h e b a c k o f w h at t h ey h ave l e a r n e d d u r i n g t h e i r t i m e at t h e Su m m i t . T h e s e i n c l u d e :• C a r b o n o f f s e t i n i t i at i ve - Pl e a s e re fe r to p a ge 2 4 • Pa p e r a n d p l a s t i c re d u c t i o n i n i t i at i ve s – Pl e a s e re fe r to p a ge 2 4• G I B ( U K ) vo l u n te e r d ays – Two vo l u n te e r d ays we re o rga n i s e d i n 2 0 1 9 .

O u r vo l u n te e r d ays we re s e t a ro u n d t h e S D G s .

2 92 8

O u r c o m m u n i ty

We a re c o m m i tte d to t h e c o m m u n i t i e s i n w h i c h we o p e rate i n a n d wa n t to b e re c o g n i s e d a s a go o d c o r p o rate c i t i ze n . We s t r i ve to h ave a p o s i t i ve i m p a c t i n t h e s o c i e ty i n w h i c h we o p e rate .

S D G 1 : N o p ove r ty

P h i l a n t h ro p i c a c t i v i t i e s

G I B ( U K ) s u p p o r ts a n u m b e r o f Lo n d o n - b a s e d c h a r i t i e s t h at a i m to re d u c e p ove r ty a n d i ts e f fe c ts i n t h e c o m m u n i ty w h e re we o p e rate . Am o n g s t t h e s e c h a r i t i e s we re t h e Lo rd M ayo r ’s Ap p e a l ( w h i c h we a re a C o r p o -rate Pa r t n e r ) a n d Wra p u p Lo n d o n .

C a s e s t u d y : Wra p u p L o n d o nFo u r e m p loye e s f ro m G I B ( U K ) vo l u n te e re d fo r “ Wra p U p Lo n d o n” , a n a n n u a l c o at c o l le c t i o n c a m p a i g n o rga n i s e d by H a n d s O n Lo n d o n .

T h e c o l le c te d c o ats we re s o r te d a n d d i s t r i b u te d to t h e h o m e le s s to h e l p ke e p t h e m wa r m t h ro u g h o u t t h e wi n te r.

S D G 2 : Z e ro h u n g e r

Fo o d b a n k d o n at i o n

As p a r t o f o u r s u p p o r t fo r o u r c o m m u n i ty, G I B ( U K ) e m p loye e s m a d e a ge n e ro u s c o n t r i b u t i o n to We s t m i n s te r fo o d b a n k .

T h e We s t m i n s te r Fo o d b a n k p rov i d e s fo o d p a rc e l s to t h o s e w h o a re re s i d e n t i n t h e b o ro u g h w h o a re go i n g t h ro u g h a c r i s i s . C l i e n ts a c c e s s t h e s e r v i c e v i a a vo u c h e r re fe rra l sys te m o p e rate d t h ro u g h f ro n t- l i n e o rga n i s at i o n s e .g . h o u s i n g s e r v i c e s , a d v i c e s e r v i c e s , D o c to r s u rge r i e s , s c h o o l s e tc .

An y i n d i v i d u a l , c o u p le o r fa m i ly re s i d e n t i n t h e B o ro u g h o f We s t m i n -s te r w h o c a n n o t a f fo rd to b u y fo o d a s a re s u l t o f a c r i s i s , e .g . , p ro b le m s wi t h b e n e f i ts , d e b t , l a rge b i l l s , e tc . a n d h a s a c c e s s to c o o k i n g fa c i l i t i e s i s e l i g i b le to re c e i ve a vo u c h e r f ro m o n e o f t h e Fo o d b a n k ’s vo u c h e r d i s t r i b u to rs .

D o n at i o n to fo o d b a n k to ta l l i n g 6 7 . 7 0 k g

S D G 5 : G e n d e r e q u a l i ty

‘ S h e C a n B e’

A g ro u p o f te n g i r l s j o i n e d G I B ( U K ) fo r a d ay. T h e g i r l s m e t wi t h G I B ( U K ) c o l le a g u e s f ro m d i f fe re n t d e p a r t m e n ts a n d f ro m d i f fe re n t leve l s o f t h e o rga n -i s at i o n .

T h e g i r l s to o k p a r t i n a n u m b e r o f d i f fe re n t i n te ra c t i ve a c t i v i t i e s , h i g h l i g h t i n g t h e c o re s k i l l s t h at a re re q u i re d a c ro s s a b ro a d ra n ge o f j o b o p p o r t u n i t i e s s u c h a s c o m m u n i c at i o n , c o n f i d e n c e a n d p ro b le m s o lv i n g .

C a s e s t u d y : L o rd M ayo r ’s A p p e a lA n u m b e r o f e m p loye e s f ro m G I B ( U K ) to o k p a r t i n f u n d ra i s i n g a c t i v i t i e s o rga n i s e d by t h e Lo rd M ayo r ’s Ap p e a l . T h e s e i n c l u d e C i ty G i v i n g D ay a n d Ab s e i l i n g fo r C h a r i ty.

I n to ta l , t h e e m p l oye e s ra i s e d £ 2 , 2 9 7 . 0 4 , w h i c h wa s m atc h e d by G I B ( U K ) .

3 13 0

O u r s u p p l i e r s

We b e l i eve t h at d eve lo p i n g a s t ro n g a n d a c o l l a b o rat i ve re l at i o n s h i p wi t h o u r s u p p l i e rs i s i m p o r ta n t . We a l s o re c o g n i s e t h e i m p o r ta n c e o f e m b e d d i n g s u s ta i n -a b i l i ty c o n s i d e rat i o n s i n o u r s u p p ly c h a i n .

O u t s o u rc i n g a n d t h i rd p a r ty s u p p ly q u e s t i o n n a i re s

We a s k o u r s u p p l i e rs a n d t h i rd p a r t i e s to c o m p le te o u r O u ts o u rc i n g a n d T h i rd Pa r ty Su p p l i e r q u e s t i o n n a i re s a s p a r t o f t h e p ro c u re m e n t p ro c e s s . T h e a i m o f t h e q u e s t i o n n a i re s i s to e n s u re t h at we d o n o t e n ga ge i n u n s u s ta i n a b l e p ra c t i c e s i n d i re c t ly t h ro u g h o u r s u p p ly c h a i n .

T h e q u e s t i o n n a i re s a d d re s s to p i c s t h at a re d i re c t ly l i n ke d to o u r key p i l l a rs . M o re s p e c i f i c a l ly, t h e q u e s t i o n n a i re s a d d re s s t h e fo l lowi n g :

• Eq u a l i ty, d i ve rs i ty a n d h u m a n c a p i ta l d eve lo p m e n t • C l i m a te, e n v i ro n m e n ta l a c t i o n a n d wate r • I n n ova t i o n a n d i n f ra s t r u c t u re • H e a l t h a n d we l l b e i n g • G ove r n a n c e a n d a c c o u n ta b i l i ty • D a ta p ro te c t i o n a n d c o n f i d e n t i a l i ty • E xc l u s i o n s • O t h e r re leva n t m atte rs

Al l o f t h e c o m p l e te d q u e s t i o n n a i re s re c e i ve d i n 2 0 1 9 i n d i c ate d t h at o u r s u p p l i e r s’ p ra c t i c e s we re i n l i n e w i t h o u r s u s t a i n a b i l i ty re q u i re m e n t s .

O u r c l i e n t s

We fo c u s o n e s ta b l i s h i n g a d e e p b o n d wi t h e a c h o f o u r c l i e n ts . O u r a p p ro a c h i s to c re a te e f fe c t i ve c l i e n t fo c u s e d p a r t n e rs h i p s :

D e e p e n a n d b ro a d e n

re l at i o n s h i p s

H o l i s t i c , s o l u t i o n fo c u s e d

e n ga ge m e n ts

I n ve s t m e n t i n to o l s ,

p ro c e s s e s a n d p e rs o n n e l

Leve ra ge o u r re l at i o n s h i p s

O u r ow n e rs h i p s t r u c t u re a n d i ts “p a t i e n t” c a p i ta l m e a n s t h at we h ave a lways b e e n we l l p l a c e d to ta ke a lo n g te r m p e rs p e c t i ve . N o t b e i n g b o u n d by q u a r te r ly re p o r t i n g m e a n s t h at we fo c u s o n lo n g te r m va l u e c re at i o n a n d lo n g te r m s u s ta i n a b i l i ty.

Su s t a i n a b i l i ty a d vo c a cy

E ve n t s

We atte n d a n d p a r t i c i p ate i n eve n ts re l ate d to re s p o n s i b l e i n ve s t m e n t a n d s u s ta i n a b i l i ty. O u r p a r t i c i p at i o n i n t h e s e eve n ts ta ke a n u m b e r o f fo r m s i n c l u d i n g b e i n g le a d s p e a ke rs , b e i n g p a r t o f a p a n e l d i s c u s s i o n a n d m o d e rat i n g p a n e l s e s s i o n s .

I n 2 0 1 9 , we to o k p a r t i c u l a r i n te re s t i n eve n ts c e n t re d a ro u n d t h re e m a i n to p i c s :• T h e c i rc u l a r e c o n o m y • C l i m ate gove r n a n c e • Fe m a le e m p owe r m e n t

T h e c i rc u l a r e c o n o m y

We p a r t i c i p ate d i n a n u m b e r o f eve n ts o n t h e c i rc u l a r e c o n o m y :

• O u r C EO gave a s p e e c h at t h e Re s p o n s i b le B u s i n e s s Fo r u m o n Su s ta i n a b le D eve lo p m e n t i n S i n ga p o re e n t i t le d Ea r t h , A i r, Wate r : T h e c h a l le n ge s o f f i n a n c i n g t h e c i rc u l a r e c o n o m y.

To a c c e s s t h e s p e e c h , p l e a s e c l i c k here.

• O u r H e a d o f St ra te g y p a r t i c i p ate d i n a p a n e l d i s c u s s i o n i n t h e Ab u D h a b i Su s ta i n a b le B u s i n e s s Le a d e rs h i p Fo r u m 2 0 1 9 d e b at i n g t h e f i n a n c i n g o f t h e c i rc u l a r e c o n o m y.

3 33 2

Fe m a l e e m p owe r m e n t

A n u m b e r o f o u r fe m a le e m p loye e s re p re s e n te d u s at t h e Wo m e n’s Fo r u m G lo b a l M e e t i n g i n Pa r i s , w h i c h to o k p l a c e ove r t h re e d ays .

O u r re p re s e n tat i ve s h a d t h e c h a n c e to h e a r f ro m i n s p i r i n g le a d e rs f ro m a ro u n d t h e g lo b e d i s c u s s p re s s i n g to p i c s i n c l u d i n g i n c l u s i o n a n d d i ve r-s i ty.

T h o u g h t l e a d e r s h i p

We a re t h o u g h t le a d e rs i n t h e s p a c e o f s u s ta i n a b i l i ty a n d s u s ta i n a b le i n ve s t i n g .

I n 2 0 1 9 , we p u b l i s h e d 1 2 t h o u g h t p i e c e s i n c l u d i n g i n s i g h ts , c o m m e n ta r i e s a n d v i d e o s .

O u r t h o u g h t p i e c e s c ove re d a n u m b e r o f re s p o n s i b l e i n ve s t m e n t a n d s u s ta i n a b i l i ty re l ate d to p i c s i n c l u d i n g :

• E SG d a ta i n d i s c re t i o n s : a s a n i ty c h e c k o n p ra c t i c a l i ty

• E SG : p l ay i n g by t h e r u le s • E SG : i m p a c t i n g i m p a c t • S avi n g o u r o c e a n s • Ea r t h , a i r, wate r : t h e c h a l le n ge s o f

f i n a n c i n g t h e c i rc u l a r e c o n o m y

C l i m ate g ove r n a n c e

We a tte n d e d a n d p a r t i c i p a te d i n a n u m b e r o f eve n ts i n 2 0 1 9 o n t h e to p i c o f c l i m ate a n d c l i m ate gove r n a n c e. Am o n g s t t h o s e wa s C i ty We e k 2 0 1 9 ( C l i m a te F i n a n c e a n d Su s ta i n a b i l i ty ) t h at to o k p l a c e i n Lo n d o n . Am o n g s t o t h e r c o n t r i b u to rs , o u r C EO a d d re s s e d c l i m a te f i n a n c e a n d t ra n s fo r m i n g p u b l i c b e h av i o u r i n i ts a p p ro a c h to c l i m ate i n ve s t m e n ts .

Su s ta i n a b i l i ty s i ts at t h e h e a r t o f G I B ( U K ) . We c o n s i d e r s u s ta i n a b i l i ty i n o u r

s t rate g y a n d a l l o u r p ra c t i c e s ; b e i t i n ve s t m e n ts o r o p e rat i o n s

O u r m e m b e rs h i p s

We re c o g n i s e t h at o u r a c t i o n s , n o m atte r h ow s m a l l o r b i g , le ave a m a r k . We wa n t o u r m a r ks to b e p o s i t i ve . We a l s o re c o g n i s e t h at i n d i v i d u a l a c t i o n s m ay n o t le a d to t h e re q u i re d s c a le o f re s u l ts . T h i s i s w h y we p a r t n e r wi t h d i f fe re n t o rga n i s a -t i o n s w h o s h a re t h e s a m e go a l s a n d c o m m i t m e n ts a s u s .

A vo l u n ta r y i n i t i at i ve t h a t e n c o u ra ge s i n ve s to rs to e m b e d

e n v i ro n m e n ta l , s o c i a l a n d gove r n a n c e ( E SG ) fa c to rs i n to

t h e i r i n ve s t m e n t d e c i s i o n m a k i n g

A fo r u m t h at e n c o u ra ge s Eu ro p e a n i n ve s to r

c o l l a b o rat i o n o n i s s u e s re l a te d to c l i m ate c h a n ge

An i n i t i at i ve a i m i n g to d eve l o p s ta n d a rd i s e d c l i m ate - re l ate d r i s k d i s c l o s u re s t h at c o u l d h e l p ta c k l e

c l i m ate c h a n ge

A n o n - p ro f i t i n te r n a t i o n a l o rga n i s at i o n c o m m i tte d to i m p rov i n g t h e s tate o f t h e

wo r l d by e n ga g i n g l e a d e rs o n p re s s i n g i s s u e s a n d u rg i n g t h e m to b e tte r s h a p e t h e i r i n d u s t r i e s

Re p re s e n ts I n ve s t m e n t M a n a ge rs a n d As s e t M a n a ge m e n t

f i r m s i n t h e U K a n d e n c o u ra ge s b e tte r p ra c t i c e s

An i n i t i at i ve t h at c ata lys e s t h e i n f l u e n c e o f l a rge , p r i vate c o r p o -rat i o n s a n d c h a l l e n ge s d i ve rs i ty

t h at exc l u d e s d i s a b i l i ty

A c o a l i t i o n , c o n ve n e d by t h e W E F, w h i c h c o m b i n e s ove r 5 0

l e a d e rs l o o k i n g to s o lve to d ay ’s m o s t p re s s i n g o c e a n c h a l l e n ge s

An i n i t i at i ve c o - c h a i re d by t h e W E F, I n te r n at i o n a l C o m m i tte e

o f t h e Re d C ro s s ( I C R C ) a n d t h e Wo r l d B a n k G ro u p, w h i c h a i m s to

e m p owe r t h e H u m a n i ta r i a n I n ve s t i n g C o m m u i n i ty

3 53 4

O u r o u t l o o k

We a re c o n s c i o u s o f t h e m a r k we le ave. I n 2 0 2 0 , we re m a i n fo c u s e d o n o f fe r i n g s u s ta i n a b l e c a p a b i l i t i e s i n o u r As s e t M a n a ge m e n t b u s i n e s s , a n d o n e n s u r i n g t h at o u r Tre a s u r y b u s i n e s s o p e rat i o n s a re s u s ta i n a b le .

T h i s s e c t i o n h i g h l i g h ts s o m e o f t h e s u s ta i n a b i l i ty i n i t i at i ve s t h a t we h ave p l a n n e d fo r 2 0 2 0 . T h e s e o f fe r a f l avo u r o f w h at we wi l l b e wo r k i n g o n i n 2 0 2 0 , b u t a re by n o m e a n s ex h a u s t i ve .

Fu r t h e r s t re n g t h e n i n g o u r e n g a g e m e n t c a p a b i l i ty

We h ave s e e n s i g n i f i c a n t i m p rove m e n t i n o u r e n ga ge m e n t c a p a b i l i ty i n 2 0 1 9 . I n a d d i t i o n to t h e l a u n c h o f o u r Tra d e F i n a n c e C o u n te r p a r t i e s a n d O b l i go rs e n ga ge m e n t p ro g ra m , we h ave s e e n a n i m p rove m e n t i n t h e q u a l i ty o f e n ga ge -m e n t o u tc o m e s a c ro s s t h e d i f fe re n t a s s e t c l a s s e s .

I n 2 0 2 0 , we a re a i m i n g to s t re n g t h e n t h i s c a p a b i l i ty f u r t h e r by c o n t i n u i n g to b u i ld a s t ro n g a n d d e d i c ate d e n ga ge m e n t te a m .

O u r n ew o f f i c e b u i l d i n g

We h ave p l a n n e d to m ove to n ew p re m i s e s i n 2 0 2 0 . O u r n ew b u i l d i n g a n d d e s i g n i s ta rge tt i n g a S K A G o ld rat i n g , c o n s i s te n t w i t h o u r fo c u s o n s u s ta i n a b i l i ty. We p l a n fo r t h e b u i ld i n g to h ave t h e fo l lowi n g fe at u re s :

• L i g h t i n g to a m i n i m u m LG 7 s ta n d a rd • Fu l l re cyc l i n g fa c i l i t i e s • M a x i m u m u s e o f n at u ra l l i g h t • Pa i n ts u s e d wi t h low tox i n vo l u m e s• O n go i n g re p o r t i n g o f e n e rg y c o n s u m p t i o n a n d e f f i c i e n cy o p p o r t u n i t i e s• M a te r i a l s a n d f u r n i t u re to b e f u l ly re cyc l a b le a n d m a d e f ro m re cyc le d , n at u ra l

m a te r i a l s• A i r q u a l i ty to b e e f f i c i e n t a n d m o n i to re d