Record : Climate-Related Disclosures Report 2021/2022

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Building a resilient and sustainable future

Record plc Climate-Related Disclosures Report 2021/2022

Climate-Related Disclosures Report 2021/2022

Contents

Our purpose

Why we exist

Introduction

Introduction

1

TCFD summary

TCFD summary

2

The need for change

The need for change	4
What does net-zero actually mean?	4

Governance

Operational	6
Investment	7

Strategy

Our approach to climate change	9
Pillar 1: Net-zero transition within
our operations and value chain	9
Pillar 2: Climate-integrated
investment	12
Pillar 3: Climate-focused
engagement with stakeholders	13
Pillar 4: Climate transparency
and reporting	14

Risk management

Identification and assessment of
climate-related risks and opportunities	16
Climate-related risks and opportunities	17
Management of climate-related risks	19

Metrics and targets

Net-zero targets	22
Climate-related targets for 2022/2023	23
Looking ahead into 2022/2023
and beyond	24

Record was born of an idea that no one else in our industry had: Currency Overlay

• including the world's first standalone Currency Overlay mandate in 1985. Almost four decades later, we purposefully continue to harness trends, ignite ideas and spark innovation, with intellectual, inquisitive and diverse thinking. And we apply this never-standing-still approach to all our specialist partnerships and solutions.

This way, we stay one step ahead for our clients.

Record plc

Climate-Related Disclosures Report 2021/2022

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Introduction

Record's focus on climate resilience is core to our corporate purpose and is aligned with our responsibility to our stakeholders.

I believe we have a responsibility as a business to promote a sustainable future. The covid-19 pandemic has shown us the profound and far-reaching impact natural disasters can have on society and the economy. However, it also showed us how individuals, businesses and countries alike can work collaboratively to quickly solve problems and deliver solutions. We need to give climate change the same sense of urgency and community to tackle the crisis and ensure a just transition into a low-carbon economy.

At Record, we have always been conscious of the impact we have on the environment, which is demonstrated by the fact we have been certified Carbon Neutral®, measuring and offsetting our carbon emissions, since 2007. Record's focus on climate resilience is core to our corporate purpose and is aligned with our responsibility

to our stakeholders. Our work in this space is fast evolving as we continuously improve our climate strategy, governance and reporting. That is why we are proud to publish our first-ever standalone climate report. This report provides insight into how we identify and manage climate-related risks, as well as take hold of the climate-related opportunities, both operationally and in terms of our investments. In line with this, we have identified four strategic pillars for addressing climate-related risks and opportunities which we believe will generate long-term value for the Company, our stakeholders and the environment:

1. Net-zerotransition within our operations and value chain
2. Climate-integratedinvestment
3. Climate-focusedengagement with stakeholders
4. Climate transparency and reporting

To inform our strategy and provide a framework for assessing climate-related risks and opportunities, we have drawn upon the recommendations of the Task Force on Climate-related Financial

Disclosures ("TCFD") and present our climate report within their four thematic areas: Governance, Strategy, Risk Management, and Metrics and Targets. Under each of these core areas, the TCFD provides eleven recommendations which are designed to solicit in-depth,forward-looking climate disclosures, as well as five additional recommendations for asset managers with respect to their investment management process. To present the information as clearly as possible, we have separated the recommendations with regard to both the firm's own day-to-day activities ("operational") and our investment activities on behalf of our clients ("investments").

Leslie Hill

Chief Executive Officer

30 June 2022

Record plc

Climate-Related Disclosures Report 2021/2022

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TCFD summary

TCFD summary

Governance

Recommendations	Current status			Future priorities			Page
Describe Board-level oversight of climate-related risks and opportunities.			Compliant			We aim to run climate-related training for Board members through a			See more on
							climate and sustainability deep dive session.			pages 6-7
Describe management's role in assessing and managing climate-related			Compliant			We will enhance reporting on climate risk at Senior Sustainability Office			See more on
risks and opportunities.						meetings and ensure we have processes in place to ensure the Head of			pages 6-7
							Business Risk is always updated.

Strategy

Recommendations

Current status

Future priorities

Page

Describe the climate-related risks and opportunities the organisation			Compliant			We will continue to enhance our climate risk and opportunity
has identified over the short, medium and long term.						identification and modelling processes.
Describe the impact of these climate-related risks and opportunities on			Compliant			We will work to further integrate climate-related risks and
the organisation's business, strategy and financial planning.						opportunities into our financial planning.
Describe the resilience of the organisation's strategy, taking into			Partially			Explanation: We need to conduct a climate scenario analysis to assess
account different climate-related scenarios, including a 2ºC or lower			compliant			the resilience of our climate strategy in other climate warming scenarios,
scenario.						such as a 4°C warming scenario, to report in our next TCFD disclosure.
Additional recommendations included in the supplemental guidance for			Partially			Explanation: We need to describe how each product or investment
asset managers.			compliant			strategy might be affected by the transition to a low-carbon economy.

See more on pages 17-18

See more on pages 9-14;17-18

See more on page 16

See more on page 12

Record plc

Climate-Related Disclosures Report 2021/2022

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TCFD summary continued

TCFD summary continued

Risk management

Recommendations

Current status

Future priorities

Page

Describe the organisation's processes for identifying and assessing			Compliant			Continuously review our identification process to ensure we are
climate-related risks.						identifying relevant climate risks on an ongoing basis.
Describe the organisation's processes for managing climate-related			Compliant			Review Board climate-related risk appetite thresholds.
risks strategy and financial planning.
Describe how processes for identifying, assessing and managing			Compliant			Further embed climate risk into the Group-wide risk framework,
climate-related risks are integrated into the organisation's overall						ensuring climate risks outside of appetite are discussed with the Board
risk management.						on a regular basis.
Additional recommendations included in the supplemental guidance for			Partially			Explanation: We aim to investigate how we can manage material
asset managers.			compliant			climate-related risks for our hedging strategies.

See more on page 19

See more on page 19

See more on page 19

See more on page 20

Metrics and targets

Recommendations

Current status

Future priorities

Page

Disclose the metrics used by the organisation to assess climate-related			Partially			Explanation: Work to quantify the extent our assets/business activities
risks and opportunities in line with its strategy and risk management			compliant			are vulnerable to transitional and physical risks, as well as our assets/
process.						revenue aligned with climate-related opportunities.
Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas			Compliant			Develop our assessment of the related risks of our emissions.
("GHG") emissions, and the related risks.
Describe the targets used by the organisation to manage			Compliant			We will annually disclose against our newly published interim net-zero
climate-related risks and opportunities and performance against						reduction targets and other climate-related targets.
targets.
Additional recommendations included in the supplemental guidance for			Partially			Explanation: We intend to extend our Category 15 Scope 3 investment
asset managers.			compliant			emissions assessments across more products and strategies
						as methodology develops.

See more on page 22

See more on page 22

See more on pages 23-24

See more on page 22