Climate Change Policy

Bentham is a specialist global credit investment manager with an investment philosophy based on a strong credit culture and a systematic investment process, focused on preservation of principal and protection against downside risk. We aim to play a role in supporting environmental sustainability by integrating responsible practices into our operations and investment strategies.

Our commitment

Bentham works to assess the impact of climate change across all its investment activities. We support global initiatives such as the International Sustainability Standards Board (‘ISSB’) sustainability reporting standards S1 and S2. Our approach integrates material climate risk analysis into our investment processes. This commitment reflects our proactive stance in contributing to a sustainable future. Bentham seeks to support its clients’ climate goals through provision of climate related data and internal research.

Risk management

Our approach is focused on material risks. Material risks are generally identified by our investment team and are supported by ISSB SASB factors. If considered material, we manage climate risks by incorporating both physical and transition risks into our investment analysis and decision-making processes. For example, this may include assessing the direct physical impacts of climate change such as extreme weather events, and the regulatory policies aimed at reducing emissions. Where data and coverage is available, we use up-to-date, evidence based information from reputable sources to inform our analysis and identify investment risks and opportunities. Bentham accesses directly or through its ESG consultant relevant climate science updates from recognised authorities (e.g. Intergovernmental Panel on Climate Change, CSIRO, Bureau of Meteorology) to inform analysis and assessment of proposed investments.

We believe this systematic approach helps us protect and enhance the long-term value of our investments.

Continuous improvement

Bentham monitors climate change policy developments across international jurisdictions and technological developments to identify investment risks and opportunities. This may include analysis of the carbon intensity of investments and exposure to regulation, or technologies which may be disadvantaged or benefit from decarbonisation. Bentham also engages with ESG data providers to improve the understanding of the complexities of the climate data challenges for ESG data.

Bentham will review and update its climate change policy and commitments to ensure we remain aligned with best practices and new developments. This ongoing process of evaluation and adaption helps us to ensure that our strategies are effective in addressing the evolving challengers of climate change.

This policy will be reviewed annually and is approved by Bentham’s Board who have ultimate oversight and responsibility for investment activities and ESG strategy and policy.