Please see here our Responsible Investment Policy

https://www.bridgesfundmanagement.com/wp-content/uploads/2019/10/Bridges-Fund-Management_Responsible-Investment-Policy.pdf

Across our funds, under our Sustainable Planet theme we've invested in businesses that divert waste from landfill, promote a more sustainable approach to food and farming and we've refurbished buildings to make them more energy-efficient. We analyse risks and opportunities for every investment. In particular, in our property funds we have a dedicated environmental engineer and we carry out climate change risk assessments regularly and assess both physical and transition risks as well as opportunities for mitigation or adaptation. 

Example of risks:

• Avoid areas with high risk of flooding without mitigation measures / food defences (physical risks)
• Assess the risk of overheating and structural stability in new developments (physical risks)
• Assess the impact of climate change on biodiversity and select climate resilient planting (physical risks)
• Assess the impact of regulatory risks. For example, requiring EPC rating of B as a minimum in all our new developments well above the current minimum requirement now of E  (transition risks)

Example of opportunities:

• Incorporate renewable and energy efficiency reducing dependency on fossil fuels (adaptation) whilst reducing carbon dioxide emissions (mitigation)
• Resource efficiency, materials and embodied carbon for example using Cross Laminated Timber from sustainably growth forest in low rise construction (adaptation) to reduce programme, costs and energy consumption in operation, as timber has higher insulated properties than concrete or steel, and therefore contributing to climate change mitigation 
• Planting trees in new developments, as well as providing shade, trees are an important feature in landscape to increase biodiversity, contribute to the reduction of water run-off and flooding (adaptation), whilst also improve air quality and thus contribute to climate change mitigation
• Using thermal mass minimising energy consumption (adaptation) and might prevent future retrofit of air conditioning (mitigation)

In our property funds, physical risks that have been assessed in new developments usually cover a long-term period. Drainage assessments usually take into consideration level of risk of storm events up to 1 in 100 years, with an increase in rainfall intensity for climate change of 40%. Overheating assessments usually take different scenarios, a year with moderately warm summer, a year with more intense single warm spell and a year with a long period of persistent warmth and/or use future weather data following UK Met office climate change projections for 2020s, 2050s, 2080s high, medium and low emissions scenarios. However, timescales models vary with regard to each investment and fund.

In March 2020, we publicly supported the Financial Stability Board’s (FSB) Task Force on Climate-related Financial Disclosures (TCFD) on its effort to develop recommendations for voluntary climate-related financial disclosures that are consistent, comparable, reliable, clear, and efficient, and provide decision-useful information to lenders, insurers, and investors.

We believe that better access to data will enhance how climate-related risks are assessed, priced, and managed. Investors will make better informed decisions on where and how they want to allocate their capital. Lenders, insurers and underwriters will be better able to evaluate their risks and exposures over the short, medium, and long-term. This is expected to make the financial system more resilient to climate-related risks.

As outlined in our Responsible Investment Policy and Ethical Charter, we endeavour to protect and preserve the environment in which we and our portfolio companies operate. In particular, we are committed to:

• Continuing to improve energy efficiency and reducing carbon dioxide emissions in our activities and investments;
• increasing our investment in sectors and activities that contribute to a more sustainable planet or to climate change adaptation;
• reducing waste, including the proportion of waste going to landfill, and reduce water usage.

Supporting the TCFD has been a natural step for Bridges. We are keen to collaborate with the Task Force and help developing meaningful and useful climate-risk related disclosures that can support decision-making also of small and medium businesses. We are following the TCFD recommendations and worked to incorporate climate risks and opportunities into our governance, strategy, risk management, and metrics and targets.

Bridges has implemented a number of procedures and controls designed where possible to ensure that conflicts of interest do not arise. In the event that conflicts of interests do arise, Bridges has in place policies to detect, record and manage these. For example, in relation to the management of investments, any conflicted party must declare that conflict and excuse itself from decision-making on the relevant point wherever possible. If a conflict of interest arises in an Investment Committee, it will be documented in the Investment Committee papers along with mitigating actions and will be advised to and discussed with the Investors’ Committee for the fund in question. Similarly, any conflict identified between funds managed by Bridges will be notified to and mitigating actions discussed with the relevant investors’ committees.

Further procedures and controls monitor the effectiveness of the management arrangements for such conflicts. All personnel receive a copy of our Compliance Manual containing our conflict arrangements and are required to give an annual undertaking of adherence to the policy.