Climate Impact Investments - Milltrust | Sustainability

Investment Premise

It’s the final call to save the world from climate catastrophe. Whilst the challenges are high, keeping warming below 1.5°C by the end of the century is still feasible according to the IPCC. However, with every decade lost, these challenges rise and will, at some point, become insurmountable with warming locked into 2°C and above.

The Asia-Pacific region is responsible for over half of global carbon dioxide emissions and is the region most exposed to climate risks. But the region also houses significant opportunites to invest in world-leading companies working on climate impact solutions

The Time to Act is Now

STRATEGY

Milltrust’s award-winning Climate Impact Asia Fund backs the leading innovative Asia Pacific-listed companies developing scalable solutions to enable the adaptation to, or the mitigation of, climate change, and the transition to the low carbon economy.

Integrating ESG and impact analysis at the heart of our investment process, and leveraging the environmental expertise of our partners at WWF-Hong Kong as environmental consultants, our objectives are to achieve strong and differentiated shareholder returns for investors whilst delivering positive climate action, active company engagements, alignments our key targeted SDGs, and real environmental impact.

As a key feature of the fund’s environmental strategy, the fund proudly donates a meaningful portion of its fees to the world-leading biodiversity and species extinction conservation work led by our partners at WWF-Hong Kong, channelling private capital to impact-driven nature-based solutions.

Key Accolades

Best Impact Equity Fund

Finalist - Investment Week Sustainable ESG Investment Awards 2021

Impact Initiative of the Year - Asia Award 2020

Winner - Environmental Finance Impact Awards 2021

Brightest Idea 2020

Finalist - Pensions & Investments Brightest Idea Awards 2020

Unique Partnership with WWF-Hong Kong

Mlltrust’s Climate Impact Asia Fund is managed in partnership with WWF-Hong Kong, serving as our environmental consultants and acting as key members of the Investment Advisory Committee whose role is to provide environmental expertise, leading insights, and deep knowledge on climate policies, monitor the investments’ climate credentials, with veto-rights on all underlying investments for environmental reasons, and to offer unparalleled access to a global network of contacts from academia, industry, government, and civil society, to help achieve our climate impact objectives.

The World Wide Fund for Nature (WWF) is an independent conservation organization, with over 30 million followers and a global network active in nearly 100 countries. WWF’s mission is to stop the degradation of the Earth’s natural environment and to build a future in which humans live in harmony with nature, by conserving the world’s biological diversity, ensuring that the use of renewable nature resources is sustainable, and promoting the reduction of pollution and wasteful consumption.

WWF-Hong Kong, established in 1981, maintains a vision to transform the territory into Asia’s most sustainable city. WWF-Hong Kong’s Environmental Finance team drives economically viable solutions for climate, species, and habitats.

Primary Sectors of Focus

Renewables & Electrification

Renewable energy capacity in Asia, including wind, solar and hydro, continues to grow steadily, in particular in China and India. China’s is targeting that renewable generation capacity accounts for half of all installed capacity by 2025.

Recycling & Environmental Services

China aims to re-use 60% of its urban household waste by 2025, up from 50% in 2020 as well as raising the urban trash utilisation rate to 60%. China will also raise incineration levels to about 65%, up from 45% in 2020.

Low-Carbon Transport

China’s policy goal to grow EV sales to 20% of new passenger car sales by 2025 creates a strong demand situation for China's leading EV brands. In total, more than 1.3M electric vehicles were sold in China in 2020. China is also, by far, the fastest-growing EV market with a projected growth rate of 24% annually until the end of the decade.

Water & Green Consumption

Asia is currently home to 4.5 billion people, who use ~ 65% of the world’s water supply. An estimated 30% of Asia's population is already facing water scarcity with demand for water expected to increase exponentially.

Sustainable Construction & Green Buildings

China has proposed ambitious plans to promote smarter energy use in urban cities, requiring that 50% of all new urban buildings be “certified green buildings”, increasing the energy efficiency opportunities in the region.

Energy Management Services

China has achieved huge technical energy efficiency improvements over the last decade, saving energy output by over 20% to 2018. In its 14th FYP, China aims to cut energy intensity by 13.5% through continued innovation in automation, insulation, and smart metering set to benefit strongly.

ESG & Impact

Milltrust relies on both primary research and independent data providers to collect and analyse quantitative and qualitative ESG and impact metrics which are assessed at the heart of the investment process. Data points are used for aggregated equity analysis, fund reporting and tracking of KPIs.

Environmental Analysis

• Resource Use
• Emissions
• Environmental Innovation

Social Analysis

• Workforce
• Human Rights
• Community
• Product Responsibility

Governance Analysis

• Management
• Shareholders
• CSR Strategy

Controversies (examples)

• Environmental & Public Health
• Human Rights/Labour Practices
• Working conditions
• Tax, Accounting, Audit, Reporting,
Business Practices & Ethics

Impact

• Measure company outputs and contributions to Climate Action
• Mapping of SDG Alignments

Engagement

• Build relationships with owners and management to implement engagement thesis on KPIs
• Support companies to improve their ESG policies and environmental/climate impacts
• Proxy Voting

Targeted SDG Alignments

Milltrust’s Climate Impact Asia investments actively seek to maximize the alignments to a targetted list of the UN Sustainable Development Goals (SDGs). Achieving the SDGs requires the partnership of governments, private sector, civil society and citizens alike to make sure we leave a better planet for future generations. Milltrust’s Climate Impact Asia investments’ primary SDG alignments of focus are:

Sustainable Development Goals

Adopted by all United Nations Member States in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030

Climate Action

Take urgent action to combat climate change and its impacts.

Clean Water and Sanitation

Safe and affordable drinking water for all by 2030 requires we invest in adequate infrastructure, provide sanitation facilities, and encourage hygiene.

Affordable and Clean Energy

Ensure access to affordable, reliable, sustainable and modern energy for all.

Sustainable Cities and Communities

Make cities and human settlements inclusive, safe, resilient and sustainable.

Responsible Consumption and Production

Ensure sustainable consumption and production patterns

Life below Water

Conserve and sustainably use the oceans, seas and marine resources for sustainable development.

Life on Land

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.

THE CLIMATE IMPACT ASIA FUND

Our Funds & Strategies

INTRODUCING THE CLIMATE IMPACT ASIA FUND

Investment Premise

STRATEGY

Key Accolades

Best Impact Equity Fund

Impact Initiative of the Year - Asia Award 2020

Brightest Idea 2020

Unique Partnership with WWF-Hong Kong

Primary Sectors of Focus

Renewables & Electrification

Recycling & Environmental Services

Low-Carbon Transport

Water & Green Consumption

Sustainable Construction & Green Buildings

Energy Management Services

ESG & Impact

Environmental Analysis

Social Analysis

Governance Analysis

Controversies (examples)

Impact

Engagement

Targeted SDG Alignments

Sustainable Development Goals

Climate Action

Clean Water and Sanitation

Affordable and Clean Energy

Sustainable Cities and Communities

Responsible Consumption and Production

Life below Water

Life on Land

Investment Team

Alexander Kalis

Henry Soediarko

Gary Thornton, FCA

Investment Advisory Committee

Alexander Kalis

Jean-Marc Champagne

Sam Hilton

Simon Hopkins

Board of Directors

Simon Hopkins

Gary Thornton, FCA

Michael Parton

Downloads

The Climate Impact Asia Fund SP

CONTACTS

Milltrust International LLP

Milltrust International Group (Singapore) Pte Ltd

THE CLIMATE IMPACT ASIA
FUND