Climate change integration in our Global Advisory activities Climate change integration in our Banking activities Rothschild & Co recognizes the opportunity to optimise Investor Advisory and Investor Marketing utilise investor The majority of the Group’s loan book is Lombard lending, its value proposition and enhance relationships with its insights around ESG matters, enabling them to advise on loans against portfolios of financial assets held by clients which clients by proactively addressing climate-related risks and climate strategy, responses to climate-related shareholder are managed by the Group’s Wealth & Asset Management opportunities in our Global Advisory services. activism and say-on-climate resolutions. The Investor Advisory businesses, which are integrating climate change team continues to work closely with the Equity Advisory and considerations as set out above. Approach and offering Private Capital teams across the regions, integrating ESG considerations in the IPO and earlier funding processes The other (non-Lombard) lending is predominantly secured M&A can be a catalyst in the transition to a low carbon to help companies best position themselves to access on real estate, where various ESG metrics are considered. For economy. Clean energy, such as that generated by wind and sustainable capital with an integrated sustainable strategy. example, the UK commercial property lending team has been solar, plays a major role in the energy transition and efforts collecting data in relation to energy performance and flood risk to limit greenhouse gas (GHG) emissions globally and clean Managing environmental and social risks in relation to for each property financed and ESG risks are considered as part electricity, such as that generated by wind and solar, are clients and transactions of each credit proposal. increasingly providing a greater percentage of energy to grids. We continue to take a leading role as an advisor on We are actively managing risks related to our business transactions relating to renewables, other low carbon activities. The Group’s Client Due Diligence Policy provides technologies and wider energy transition solutions, making for potential reputational risks that may arise from various the firm one of the leading advisers on global sustainable M&A sources, including, but not limited to, the nature or purpose transactions*. of a proposed transaction or service, the identity, location or 2021 was an important year for the sustainable finance activities of a potential client and the regulatory or political market and we were able to sustain a leading position context in which the business will be transacted. in raising financing for renewable projects and making Processes for the identification and assessment of green and social projects investible. Investors are reassigning environmental and social risks relating to a proposed large amounts of money towards ESG transactions and transaction or service are integrated into the businesses’ ESG ratings are increasingly in focus for businesses seeking procedures at the point of onboarding a new client and/or sustainable finance which meet the relevant criteria and mandate. objectives. Our financing advisory practice works with clients on innovative sustainable financing products, such as sustainability linked loans and bonds, education bonds and green bonds, correlating to the ambitions and net-zero targets of the client’s business. * Source: Refinitiv, Sustainable Finance Review, Sustainable Target or Acquiror M&A: Financial Advisor League Table, by number of deals, Q1/2022