Climate and Task Force on Climate Related Financial Disclosures (“TCFD”) Approach
As a responsible investor, Affinity fully recognises the importance of understanding climate related risks and opportunities and integrating these into our investment processes. In support of TCFD, our disclosure of the TCFD’s core elements, Governance, Strategy and Risk Management is laid out below.
- Governance: Climate-related considerations are embedded in Affinity’s governance structure. Our Investment Committee considers climate-related risks and opportunities as they make decisions on each investment. The Founding Chairman of Affinity oversees our ESG Policy, which includes our approach to climate change.
- Strategy: Affinity considers the physical and transition risks and opportunities of climate change on our portfolio. We see that the transition risks of climate change, such as regulatory and changes in consumer preference, have a stronger impact on our investment strategy, especially in the Asian markets where we operate, and have done analysis into where new climate related investment opportunities may arise.
- Risk Management: Climate related risks and opportunities and TCFD requirements are embedded into our ESG Policy and Guidelines and implemented in our investment processes. Climate risk factors are considered as part of pre-investment due diligence. Post investment, we assess the overall climate risks of our portfolio. Where applicable, we perform scenario deep dives for portfolio companies understand their climate risk and build climate risk mitigation plans.