As a firm, ANDA believes that material environmental, social and governance characteristics are important drivers of long-term investment returns from both an opportunity and a risk mitigation perspective. ANDA was one of Korea’s earliest signatories to the Principles for Responsible Investment and became an official TCFD supporter in December 2019. We believe climate change is a systematic risk to the value of our portfolios, and it is an issue that has profound consequences. Impacts may be direct, as with carbon tax policies, or indirect, as with strains on geopolitical relations. We do not seek to invest in ‘green’ companies, instead we seek evidence when appropriate, from our portfolio companies that they have the necessary policies and practices for the effective management of environmental issues in place. We also understand that for many of our clients the social and environmental impact of their portfolio is an important consideration in conjunction with investment performance.

In our TFCD report, ANDA describes how it supports Korea’s transition towards a low-carbon economy, how it protects activities and performance from climate-related risks and how it seizes climate-related opportunities. It reflects ANDA’s response to the recommendations of the Taskforce on Climate-related Financial Disclosure (“TCFD”) and how over time we plan to reflect the Paris Agreement in our portfolios. The TFCD report aims to provide an overview of ANDA’s general approach to identifying and managing climate-related risks in our investment portfolios and in our business operations. Our TFCD report is available here.