CCI Policy
1. Policy Purpose and Overview
This policy provides a framework for how Richmond Capital Management integrates considerations of climate change and opportunities into our process. It applies to the asset classes and investments managed by Richmond Capital Management. We believe that climate change is an economic factor that will increasingly impact investment returns and we are committed to investing in a manner that supports a sustainable and climate-resilient future.
2. Climate Change Risk Assessment
Physical risks: We assess the physical risks of climate change on investment assets, including the risk for increased frequency and severity of extreme weather events and long-term shifts in climate patterns.
Transition risks: We consider the potential financial impacts that could result from the transition to a low-carbon economy, including policy and legal changes, technological advancements, shifts in market sentiment and changes in consumer behavior.
Legal risks: We evaluate the potential risks associated with regulatory changes and litigation related to a company’s role in contributing to our mitigating climate change.
3. Climate Change Opportunity Assessment
We recognize that companies adapting to climate change and improving their climate resilience may present attractive investment opportunities.
4. Climate Change Integration in Investment Process
Due Diligence: Climate change risks and opportunities are integrated into our due diligence process which complements our rigorous fundamental analysis. Climate change considerations are factored into our risk management processes.
5. Transparency and Reporting
We are committed to providing transparency to our stakeholders on how we incorporate climate change considerations into our investment process. We make public our PRI self- assessment annually.
6. Policy Review and Update
This policy will be reviewed and updated periodically to ensure it remains consistent with emerging climate science and changes in legal and regulatory landscape.
