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Four Twenty Seven

Service Providers Framework 2020

You are in Strategy and Governance » Policy on ESG beliefs

Policy on ESG beliefs

SG 01. Responsible investment policy

01.1. Describe how your organisation’s philosophy incorporates environmental, social and governance factors, and the link to your business offerings.

Four Twenty Seven is a mission-driven market intelligence firm. Our mission is to catalyze climate adaptation and resilience investments by enabling the integration of climate science into business and policy decisions. Our analytics products and advisory services have been developed to support our conviction that businesses have a critical role to play in building resilience if provided with the right tools and guidance.

We believe private sector preparedness is essential to community resilience. We deliver solutions that help companies integrate climate risk intelligence into business decision-making. We believe that climate resilience is more than risk management. We challenge our clients to implement solutions that grow their business while protecting local communities. We believe successful adaptation calls for renewed dialogue and partnership between the public and private sectors. We engage in research and projects that foster this dialogue and support our collective journey towards resilience.

Concern for the environment is at the very core of what we do, and as such Four Twenty Seven is committed to protecting the local and global environment. Four Twenty Seven senior management and staff are committed to ensure that protection of the environment is firmly embedded in both the company’s and all employees culture and will endeavor to influence its suppliers and customers in a similar strategic environmental manner. We include the consideration of social and environmental issues in all business strategies and initiatives.

01.2. Indicate whether you have policies that formalise the incorporation of your ESG beliefs in your business offerings.

01.3. Indicate the components/types of your internal policy and provide the URL and/or an attachment of the document/s if they are publicly available.

Policy components/types

Public availability

01.4. Indicate how these are put into practice internally across the organisation.

01.5. Additional information [OPTIONAL]


SG 02. Norms used to develop policies

02.1. Indicate what frameworks and guidelines you have used to develop your organisation’s policies. Tick all that apply.

02.2. Additional information. [OPTIONAL]


SG 03. Policy offerings to clients

03.1. Indicate whether you offer standard, off the shelf, policies to clients as part of your product offerings, and/or whether you create tailored versions for individual clients.

Off the shelf
Tailored
Asset class-specific RI guidelines
Sector-specific RI guidelines
Screening/exclusions policy
Engagement policy
(Proxy) voting policy
RI guidelines set out within the Investment Policy Statement (IPS)
RI guidelines set out in a freestanding RI policy
Multi-year RI implementation project plan
Conflict of interest management policy
Stockbroker allocation policy
Securities lending policy
Other, please specify (1)
Other, please specify (2)
Other, please specify (3)
None of the above

03.3. Additional information. [OPTIONAL]


SG 04. ESG/RI in business offerings

04.1. Briefly describe how you include ESG/RI factors as part of your business offerings.

Business area

Research and Data Provision

How you include ESG/RI factors

Four Twenty Seven’s physical climate risk score for equities captures the relative climate risk exposure of companies based on the precise location of their facilities around the world and the activities and sectors upon which they depend most. Leveraging big data analytics, our physical climate risk scores offer greater transparency for investors and banks to understand their exposure to a wide range of climate-related risks, identify potential hotspots in their portfolio, and develop a risk mitigation strategy.

04.2. Indicate the roles in your organisation, and indicate for each whether they have oversight and/or implementation responsibilities for ESG/RI within the organisation.

Roles present in your organisation
Oversight/accountability for ESG/RI
Implementation of ESG/RI
Board
Directors
Chief Executive Officer (CEO), Chief Financial Officer (CFO)
Chief Operating Officer (COO), Chief Information Officer (CIO)
Other chief-level staff

Please specify

          Chief Development Officer
        

Please specify

          Chief Development Officer
        
Other heads of department

Please specify

          Department Directors
        
Dedicated ESG/RI staff
Other role, specify (1)
Other role, specify (2)
Other role, specify (3)
None of the above

04.3. Indicate how you ensure ESG/RI expertise for the roles where there are RI oversight/accountability or implementation responsibilities.

04.4. Indicate whether your organisation has any ESG/RI linked incentives for its employees.

04.5. Describe the ESG/RI linked incentives.

All Four Twenty Seven employees’ remuneration and performance bonuses are tied to the success of their work in the ESG space.

04.7. Additional information [OPTIONAL]


SG 05. Outsourcing of services (Private)


SG 06. Providing training/education

06.1. Indicate whether you provide training/educational services on ESG/RI. Tick all that apply.

06.2. Describe the main components of your training/educational services on ESG/RI and any variations depending on the group you provide training/education to.

We occasionally provide educational services focused on climate risk and TCFD reporting.

06.3. Describe whether these training/educational services include any commercial elements.

          Yes, workshops may be used to highlight Four Twenty Seven's research and data provision and reporting services.
        

06.4. Additional information. [OPTIONAL]


SG 07. Applying, advancing and promoting the PRI principles

07.1. Describe how your organisation applies, advances and promotes the PRI Principles.

As an ESG tool provider, we equip our clients with the data and information they need to disclose their risk to physical climate impacts as articulated in the TCFD recommendations. Our work enables our clients to integrate physical climate risk into their investment analysis and decision-making processes, as well as ESG disclosures. We also publish white papers and thought leadership pieces to help advance the collective understanding of how TCFD recommendations can be applied in practice and how climate risk affects financial markets. See www.427mt.com/insights.

We also integrate ESG considerations into our own operations by including the consideration of social and environmental issues in all business strategies and initiatives. We promote transportation alternatives by offering commuting incentives to encourage employees to take public transport, bike, or walk to work, and purchase carbon offsets to mitigate the impact of employee work-related air travel.  We purchase environmentally preferable products, conserve energy, water and natural resources, and minimize the use of toxic materials. Through our mission, our work, and our day-to-day operations, we are committed to continual improvement of environmental performance.

07.2. Highlight whether there are any ways that your organisation would like to engage further with the PRI. [OPTIONAL]


SG 08. Actions taken to promote responsible investment

08.1. Indicate which of the following actions your organisation has taken to promote responsible investments during the reporting year, independently of collaborative initiatives.

          Provide in-kind support for academic research by providing data to researchers at zero or highly-discounted costs.
        

08.2. Additional information. [OPTIONAL]


SG 09. Long term trends

09.1. Indicate which of the following long-term trends are addressed in your product outputs.

09.2. Explain how this long-term trend affects your product outputs.

Our products help investors and corporate clients determine their portfolio of real assets, listed instruments, and corporate value chain exposure to physical climate impacts.

09.2. Explain how this long-term trend affects your product outputs.

Our products help investors and corporate clients determine their portfolio and supply chain risk to physical climate impacts, including the effect of climate stressors on resource availability.


SG 10. Interaction with asset owners (Not Applicable)


SG 11. Aligning approach with investor goals

11.1. Describe how you typically align your organisation’s philosophy and approach to ESG/RI with your investor clients’ goals.

Investors who buy our products seek to incorporate climate information into their investment portfolio decision-making, and/or ESG reporting. We aim to inform and mobilize ESG action through data and analysis on physical climate risk. 

11.2. Additional information. [OPTIONAL]


SG 12. ESG recommendations not aligned with investor goals

12.1. Describe what steps you take, if any, when your ESG recommendations are not in line with your investor clients’ goals.

12.2. Additional information. [OPTIONAL]


SG 13. Seeking feedback from clients

13.1. Indicate whether you seek feedback from clients on your RI/ESG services and product offerings

13.2. Describe how you use this feedback in your RI/ESG services and product offerings.

Four Twenty Seven integrates client feedback by rolling out improvement requests as feasible throughout our product offerings.


SG 14. Managing conflicts of interest

14.1. Indicate whether your organisation has a policy for managing potential conflicts of interest.

14.2. Describe how you manage potential conflicts of interest.

Since Four Twenty Seven works with both investors and corporations to provide assessments of physical climate risk, it is important to keep our data streams separate and avoid conflicts of interest. Four Twenty Seven’s policy is to keep corporate and investor client data and workflows completely separate. Data and insights gathered through corporate consulting projects do not influence scoring in equity scores to maintain fairness in our scoring methodology.   

 

14.3. Describe how you ensure that company employees do not derive any personal gain from the use of information collected during your work process.

Four Twenty Seven abides by its Conflict of Interest policy, which is laid out explicitly in the company’s employee handbook and prohibits the use of information acquired in the workplace as a market intelligence provider for personal gain. 

14.4. Additional information. [OPTIONAL]


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