Climate change: CQS Investment Management, Engagement in our Multi-Asset Credit (MAC) portfolio
Since 2020, CQS Investment Management have been engaging with a leading British convenience retailer and forecourt operator, focused on several issues aligned to climate change disclosure, targets and its strategy for managing transition to a lower carbon future.
From their most recent engagement, they looked to understand potential revision of climate targets, particularly considering the disposal of its UK assets, and its landmark deal with Tesla for use of its ultra-fast EV charging unit technology. Further, recognising that the bulk of company emissions sits in Downstream Scope 3 (i.e. the use of sold products), aiming to understand efforts the company is taking to calculate its value chain footprint and to gauge a timeframe for setting a Scope 3 reduction target. In addition, CQS also joined a collaborative engagement as part of the CDP Non-Disclosure Campaign, requesting greater transparency and disclosure of environmental impact, with a view to addressing existing issues around emissions reporting.
The company confirmed that they are working with the Carbon Trust to rebase its carbon reduction roadmap to reflect disposals and acquisitions, and that they are assessing various future climate scenario analysis under different climate policies to establish full Scope 3 carbon emissions. This was publicly confirmed as a progress indicator in the company’s latest ESG report, published in 2024. Strategic importance in accelerating electrification was reiterated by management, both in terms of commercial benefits and from the transition away from fossil fuels. They did reaffirm its existing Scope 1 & 2 reduction targets, indicating they are still on track to meet its 50% reduction goal by 2030. The company also confirmed commitment towards inaugural completion of the CDP climate questionnaire for 2024. These disclosures signal an evolving approach to strategic ESG priorities, notably within climate change management and the scaling of services to enable the energy transition.
Since initiating engagement with the company, where it has since measured group-wide carbon footprint for the first time, CQS believe that the company has made significant positive progress and continues to move in the right direction. CQS will continue to pursue engagement with management to focus on the robustness of its climate objectives and monitor for Scope 3 target submission in this year’s ESG report.
At time of publishing, May 2025, CQS is one of our partners on our Multi-Asset Credit portfolio
