Foresight : Climate Disclosure FY23

CLIMATE DISCLOSURE: TCFD REPORT

FY23

EFFECTIVE DATE: APRIL 2023

CONFIDENTIALITY CLASSIFICATION - PUBLIC

Contents
Task Force on Climate-related Financial Disclosure (TCFD)	3
Compliance Statement	3
Background	3
Summary of the TCFD Requirements	4
Governance	5
Oversight	5
Management Role	6
Strategy	6
Identified Climate-related Risk and Opportunities	6
Analysis Horizons	8
Impact of Climate-related Risks	10
Transition Risks	11
Technology	12
Policy and Legal	13
Market	14
Reputation	15
Physical Risks	16
Scenario Analysis: Transition and Physical Risks	17
Risk Management	20
Processes for Identification, Measurement, Management	20
Climate-Risk Management Processes	20
Integration into Group Risk Management Processes	21
Metrics and Targets	22
Metric Disclosure	22
Scope 1,2,3 emissions	23
Appendices	28

Task Force on Climate-related Financial Disclosure (TCFD)

Compliance Statement

The disclosures in our FY23 Annual Report are consistent with the recommendations setting out how Foresight Group Holdings Limited ('Foresight Group', 'Foresight', 'Group') incorporates climate-related risks and opportunities into governance, strategy and risk management. The TCFD summary in the FY23 Annual Report should be read together with this stand-alone Climate Disclosure.

This Climate Disclosure contains additional information on our exposure to transition risk and physical risk. The Group continues to develop its metrics and performance targets to better manage climate related risks and opportunities and achieve full alignment with the TCFD framework. This is an ongoing process that we will continue to strengthen in the coming financial year (FY24). This year was the first time we sought external verification of our internally calculated emissions data, which we will continue to do going forward.

Background

Foresight continues its journey to full alignment with the recommendations of the TCFD. Our stakeholders expect transparency on our climate related risks and opportunities, and our reporting assists understanding of climate change implications for the Group.

This is the third year Foresight have reported progress against the TCFD recommendations and we have structured this update to provide additional insight into governance, strategy, risk management and metrics and targets related to climate change. We report on how we address climate change risks across our businesses and shared services as well as climate change risks in our investment portfolios.

Climate Disclosures for listed AIFs managed by Foresight Group LLP can be found on their respective websites or in their most recent annual reports.1,2,3.

1. https://jlen.com/
2. https://fsfl.foresightgroup.eu/
3. https://fsfc.foresightgroup.eu/

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Summary of the TCFD Requirements

Climate change will continue to be a defining issue for the global economy, financial markets and society in future. Investors will be unable to avoid the impact of climate change but can align their resources to support investment strategies intended to slow, halt and even reverse the rise of average global temperatures.

As an asset manager of funds invested in sustainable resources and technology, we are principally concerned with the indirect emissions from our investments and their potential impact on the environment.

We are committed to improving our analyses of climate-related risks and opportunities in order to mitigate the risks and safeguard our clients' investments. The TCFD seeks to provide investors with a common reference framework to assess the comparative approaches of investment firms to climate-related initiatives and reporting.

Climate Disclosures will increase awareness of climate-related risks and opportunities for investors and we support this objective across our operations.

We have also begun to explore how we can utilise the Task Force on Nature-related Financial Disclosures4 (TNFD) to address the crisis engulfing nature. Measurement and mitigation of nature risk are pillars we are looking to make progress on in the upcoming year. In November 2022 we launched our Nature Recovery Ambition Statement4 in collaboration with the Eden Project which goes some way to demonstrate our intentions to put nature at the forefront of how we manage our sites and land.

Core Elements of Recommended Climate-Related Financial Disclosures

Source: Recommendations of the Task Force on Climate-related Financial Disclosures (June 2017)

4https://media.umbraco.io/foresight/upjf4mww/foresight-nature-recovery-ambition-statement.pdf

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Governance

Oversight

The Board of Foresight Group Holdings Limited (the 'Board') continues to assume overall responsibility and accountability for the management of Foresight Group's climate-related risks and opportunities by setting its strategies in that regard, reviewing reports from the business and authorising new initiatives including launching new products or initiating new risk control measures. The Board keeps these reporting obligations under review and receives a regular quarterly report on the company's Sustainability activities. Alison Hutchinson CBE is the board member accountable for the Group's sustainability strategy and performance.

The Board has tasked the Executive Committee with executing and delivering that strategy. Ricardo Piñeiro is the nominated Executive Committee member responsible for Sustainability and ESG matters.

The Executive Committee regularly discusses the potential impact of climate change on our business model and our strategy. The Executive Committee considers climate-related issues when reviewing and guiding significant new business projects, business plans, annual budgets, performance objectives (and monitoring thereof) and when overseeing major capital expenditures, acquisitions and divestments. Our ability to deliver long- term outperformance depends on the climate-related risks and opportunities arising for the investments made on behalf of our clients.

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