We are aware of our impact on the natural environment and our effort to improve it
Arrow recognises the responsibility to reduce our impact on the natural world whether that be our use of offices and travel or the products and services we provide to clients. Management of the environmental effect we have and the risks that may face our business today and over a long-term horizon are increasingly in focus.
As an asset manager operating across Europe, we recognise that our business has a direct and indirect environmental impact. This section covers how our business is responding to climate change and energy management.
Climate change represents a material financial risk to the global economy. Over this reporting period, the Group has reflected on the climate change focus evident across the global and European political and regulatory landscape including the UK Government’s commitment to be a net-zero carbon economy by 2050. The board were briefed extensively by experts on the urgency of the climate crisis and the Group has initiated a long-term plan for identifying, measuring and managing climate-related risk. Our board sustainability committee has been tasked with leading our response to the Task Force for Climaterelated Financial Disclosures (TCFD) recommendations, as part of our commitment to being a responsible business and ensuring that we operate to a common set of international standards that can be deployed across all of our European operations. We understand that UK regulatory and government policy is moving toward integrated reporting on climate-related risk within listed company annual report and accounts.
This is a key priority for the Group and will be a long-term focus of our board sustainability committee, its structure reflecting the key areas of:
3. Risk management
4. Metrics and targets
The Group’s emissions for the 2020 period materially decreased, representing a reduction of 53.9%, which was largely a result of the COVID-19 global pandemic. From March, the majority of our offices were closed and all business travel reduced. During 2020, improvements were made to how we collect and report our Scope 1, 2 and 3 greenhouse gas emissions (GHG), forming part of our overall approach to managing climate-related risk. The scopes table below outlines our definition of material GHG emissions by source and the annual CO2 emissions table includes our current and historic performance.
|Total Scope 1 and 2||940.7||1,984.3|
|Tonne of CO2 per employee (using average number of employees for the year)||0.5||1.2|
In response to the Streamlined Energy and Carbon Reporting requirements, we have included within the energy consumption table below our Group and UK energy consumption for the reporting period. Our business predominantly operates from our offices. We consider our average energy consumption to be in line with the industry and will investigate the possibility of renewable energy solutions across our offices by engaging with relevant third parties (e.g. landlords or energy providers) to determine an appropriate solution.
Tackling the climate crisis will require innovative and bold solutions and quantifying the GHG emissions associated with our supply chain and portfolio is a foremost priority for the Group. Our board sustainability committee will continue to scope our decarbonisation strategy, which centres on our ambition for business operations to be carbon-neutral by 2030. We have already identified a number of external partners to support with defining our Group’s role in the net-zero carbon economy. Over the next year, the Group will work to determine and manage our indirect impact on global warming and establish science-based targets for our direct GHG emissions and we are actively pursuing enhanced measures and reporting to support TCFD disclosures during the next annual reporting period. We are committed to being a responsible business and investor and recognise that our plans will need to be refined and updated to keep abreast of the latest intellectual capital and regulatory standards.