St James Place : Task Force for Climate-Related Financial Disclosures Report 2023

2023 TCFD

Report

Climate-related Financial Disclosures for St. James's Place

Home

Our introduction

Our governance

Our strategy

Our risk

management

Our metrics and targets

Our conclusion

Glossary

and appendix

Welcome to our 2023 TCFD report

Welcome to the St. James's Place Group's Climate-related Financial Disclosures report, which explains the action we are taking on climate change and its financial impacts to our business. This is our home page, where you can navigate to all sections of our report by selecting the desired heading.

Our introduction		Our governance		Our strategy
Here you will find our		This section covers how		This section covers
Group Chief Executive's		we govern climate-		how our approach
Statement, a high-level		related risks and		has evolved,
view of who we are,		opportunities, our		progress against
our approach to		accountable leaders		our commitments,
responsible business,		and our subsidiaries'		our use of scenario
and a summary of the		approach to TCFD		analysis and our
disclosures in this		reporting.		strategic resilience.
report.
Pages 02 to 08		Pages 09 to 12		Pages 13 to 28

Our risk		Our metrics		Our conclusion
management		and targets		Closing remarks from
Here you will find our		Outlined here is our		our Chief Executive
climate-related risks		progress against our		Officer.
and opportunities, the		targets, and our
timeframe over which		operational and
we consider them, their		investment proposition
significance to our		metrics.
business, and an
overview of our risk
management and
control framework.
Pages 29 to 42		Pages 43 to 49		Pages 50 to 51

GlossaryAppendix

Pages 53 to 55

Page 56 to 58

St. James's Place TCFD Report 2023

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Home	Our introduction	Our governance	Our strategy	Our risk	Our metrics	Our conclusion	Glossary
				management	and targets		and appendix

Our introduction

Our approach to TCFD reporting		03
Group Chief Executive Officer's Statement		04
How we do business		05
Our approach to responsible business		06
Our climate commitments		07
Summary of disclosures		08

Accelerating action on climate change is a core part of our Responsible Business approach. We are committed to our transition to net zero and know that

the carbon reduction actions we take today will have a multiplying effect over time.

Maria Spooner, Divisional Director, Responsible Business

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				management	and targets		and appendix

Our approach to TCFD reporting

St. James's Place is a business made up of multiple individual entities.

This report is for St. James's Place plc (SJP), the Group's Parent Company, together with two of its subsidiaries, St. James's Place UK plc (SJPUK) and St. James's Place Unit Trust Group Limited (SJPUTG):

St. James's Place UK plc (SJPUK)

A life insurance company regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA);

St. James's Place Unit Trust Group Limited (SJPUTG)

A unit trust manager regulated by the FCA.

Whilst responsibility for corporate governance rests with the boards of each individual company, the overall approach to environmental governance is determined at a Group level in line with our Group climate strategy.

Recognising that our approach to environmental matters is applied consistently across the Group, we have chosen to report for all Group companies in a single TCFD report. To ensure we meet the individual requirements for each company, where differences exist for specific companies we have highlighted these throughout this Group report by naming the subsidiary within the text: for example on page 34 within our Risk section.

St. James's Place TCFD Report 2023	03

Home	Our introduction	Our governance

Group Chief Executive Officer's statement

Welcome to the St. James's Place Group's Climate-related Financial Disclosures report, which explains how we are taking action on climate change.

2023 was the warmest year on record and the global mean temperature increase has now risen to 1.3°C above the pre- industrial average. A series of extreme global weather events, including Canadian wildfires, heatwaves in Europe, droughts in Italy and extreme rainfall in Libya all served as unfortunate reminders of the devastating effects of our changing climate.

Research shows that progress towards 1.5°C-aligned targets isn't happening at the pace and scale necessary, and that urgent action is needed to protect the world's most vulnerable ecosystems and communities. At SJP, we recognise that we have both the responsibility to take appropriate action and the opportunity to use our voice to influence and collaborate with our stakeholders to pursue long-term positive change.

We recognise the need to accelerate climate action, and the role that businesses and individuals can play in driving change. That's why, this year we have intensified work on our Climate Transition Plan to help us better understand what we can do to promote a just, fair and inclusive transition to a more sustainable economy.

Behaving responsibly is a key part of our culture, challenging us in how we run our business. We know that effective and transparent disclosure can lead to real change, and we are pleased to share our fourth report on climate-related financial disclosures, aligned to the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, with you.

Our strategy	Our risk	Our metrics	Our conclusion	Glossary
	management	and targets		and appendix

At SJP we want to use our scale and influence to make a real change, and ensure a just and green transition to net zero.

Mark FitzPatrick, Chief Executive Officer

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Home	Our introduction	Our governance

How we do business

Our purpose

To give you

confidence to

create the future

you want

What we do

We work in

partnership to plan,

grow and protect clients' financial futures

Our vision

To be the best place to create long-term financial security

Our strategy	Our risk	Our metrics	Our conclusion	Glossary
	management	and targets		and appendix

We will get there by working together

Being a responsible business

Our culture drives our businessOur Responsible Business Framework

#1

Doing the right thing

Financial

wellbeing

#2

Purpose

Being the best version

Investing

Climate

of ourselves

responsibly

change

#3

Community

Investing in long-term

relationships

impact

Strategic enablers

People

Governance

St. James's Place TCFD Report 2023

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				management	and targets		and appendix

Our approach to responsible business

At SJP we're committed to taking responsibility for our actions and strive to have a positive impact on our people, our communities, and our planet.

Our most material topics

Being a responsible business is core to delivering on our promise of helping our clients create the futures they want. From our work with local communities to minimising our environmental impact, we aim to make choices that promote a world that can meet the needs of everyone now, and in the future.

At SJP, we recognise that we have both the responsibility and the opportunity to use our voice as a force for good and know we can drive positive change by considering the long-term impact of our actions. This requires us to look beyond ourselves and understand the wider impact of our choices on our people, our communities, and our planet.

It means engaging with others and collaborating on solutions to the shared challenges faced by society today. Supported by a deep understanding of the topics most material to us, and the right processes and metrics that provide transparency on our progress. We know that we might not always get it right and we can't do it all, but we are committed to the journey and to making real progress.

For further information on our responsible business approach please see section 01, Our responsible business, of our Group Annual Report and Accounts.

To deliver good financial outcomes for our clients, we consider relevant environmental,

social and governance (ESG) factors throughout our investment process

Investing

responsibly

Giving back to support local communities and regeneration

Financial wellbeing

Our purpose

is to give you confidence to create the future you want

Community

impact

Enhancing financial wellbeing for our clients, our people and our communities

Climate change

Taking action on climate change

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				management	and targets		and appendix

Our climate commitments

To set our net zero targets we undertook a preliminary audit across our

In 2021 we announced SJP's net zero1 targets and we report our progress against these each year through our TCFD report.

Target 1

We'll be climate

positive2 in our

operations

by 2025

This report also focuses on the impact of climate change on our business, including how it may affect the value of the investments we make, and discloses the measures we are taking to control and reduce our impact.

These disclosures demonstrate how we assess the impacts of climate change on our business and help to promote a more informed understanding of climate-related risks and opportunities.

entire value chain to better understand our Scope 1, 2 and 3 carbon emissions. As the graph below shows, our carbon impact is dominated by our investment portfolio. Our core investment business model is to select and monitor third-party fund managers to run our investments for us, rather than directly investing ourselves. However, responsible investment is one of our core investment beliefs embedded throughout our fund manager, select, monitor, change, process and we expect all our fund managers to consider how companies approach environmental, social and governance (ESG) issues when identifying and investing in long-term resilient businesses. This, coupled with targeted engagement, enables us to use our scale and influence to reduce the emissions of our portfolio. For more detail, please see page 28.

We recognise that in order to strengthen the effectiveness of our associated engagement activities, we must demonstrate credibility and meaningful

Target 2	Target 3
We'll support	Our supply
our Partners to	chain will be
become net	net zero
zero by 2035	by 2035

Target 4

We'll be net

zero in our

investments3

by 2050

As a part of developing our approach to meeting our commitments we are also undergoing a double materiality assessment to more comprehensively assess our impact across a broader range of climate-related areas.

This will support us in evolving our plans and prioritising our actions to maximise our effectiveness. We aim to publish our updated Climate Transition Plan by end

Q4 2024.

progress in our own business operations, in our Partnership and within our supply chain. Read more about our progress against our commitments

on page 19, and a breakdown of our Scope 1 to 3 carbon emissions on page 44.

Contributors to our 2023 carbon footprint4

Scope 1 to 3	Scope 3 -	Investments
- Operations	Significant contributors	99.55% tCO2e

1. The amount of greenhouse gases produced by our activities is fully negated by a combination of emissions reduction and emissions removal.
2. for SJP this involves not only offsetting carbon emissions but also taking additional steps to mitigate or sequester more greenhouse gasses than are produced through our actions.
3. Equity and debt for listed corporates and real estate. This is approximately 88% of our overall assets under management (AUM).

Operations	Partnership	Supply chain
0.08% tCO2e
	0.11% tCO2e	0.25% tCO2e
(Scopes 1 to 3)

4 This graph approximates the Group's carbon footprint to highlight the key areas. Please see page 44 for more detail.

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				management	and targets		and appendix

Summary of disclosures

Recommendations we have carefully reviewed, and for which we recognise that further work is required

Recommendations we have made significant progress against, and which we plan to enhance our disclosure further

Recommendations we have been able to fully disclose against

We are fully consistent with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and recommended disclosures (summary below). We have also considered the TCFD's All Sector Guidance and consider SJP to be fully consistent with these.

Theme

Description

Pages

TCFD recommended disclosure

2022

2023

Our disclosure

Governance	Disclose the organisation's	10 to 12,	a) Describe the Board's oversight of climate-related risks and
	governance around climate-	18 to 19,	opportunities.
	related risks and opportunities.	and 31

b) Describe management's role in assessing and managing against our climate-related risks and opportunities.

We have provided an overview of how we govern climate-related risks and opportunities including references to training, KPIs and linked remuneration. We outline our accountable leaders and provide more context on our subsidiaries.

Strategy	Disclose the actual and potential	07,
	impacts of climate-related	16 to 19,
	risks and opportunities on	20 to 27,
	the organisation's businesses,	and 44
	strategy, and financial planning	to 49
	where such information
	is material.

1. Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term.
2. Describe the impact of climate-related risks and opportunities on the organisation's businesses, strategy, and financial planning.
3. Describe the resilience of the organisation's strategy, taking into consideration different climate-related scenarios, including a +2°C or lower scenario.

We have considered and outlined our short-, medium- and long-termclimate-related risks and opportunities. Using this information alongside our scenario analysis, we have assessed their significance and impact on us as a business, and incorporated the outputs into our strategic planning.

Risk	Disclose how the organisation	30 to 42	a) Describe the organisation's processes for identifying and assessing
management	identifies, assesses, and		climate-related risks.

manages climate-related risks.

b) Describe the organisation's processes for managing climate-related risks.

c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation's overall risk management.

We have outlined the key processes we follow to identify, assess and manage our climate- related risks and opportunities, along with providing an overview of how we integrate this work into our risk management process.

Metrics and	Disclose the metrics and targets	07,	a) Disclose the metrics used by the organisation to assess
targets	used to assess and manage	12,	climate-related risks and opportunities in line with its
	relevant climate-related risks	32, and	strategy and risk management process.
	and opportunities where such	44 to 49
	b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3
	information is material.
			greenhouse gas (GHG) emissions, and the related risks.

c) Describe the targets used by the organisation to manage climate- related risks and opportunities, and performance against targets.

We have provided our operational metrics, our Scope 1, 2 and 3 GHG emissions, our progress against targets and the impact

of our investment proposition on our exposure to carbon-intensive companies.

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				management	and targets		and appendix

Our governance

Governing climate-related risks	10
and opportunities
Our accountable leaders			11
Our subsidiaries approach to	12
climate-related governance

Robust governance drives accountability and transparency, which are critical success factors for sustainable growth. With good governance we enhance performance, strengthen resilience and act in the interests of all our stakeholders.

Vicki Foster, Governance Programme Director

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