Driving meaningful change by leveraging our investments to create sustainable growth, empower communities, and shape a better future for generations to come.
We continuously seek innovative solutions—improving tools, services, and strategies—to address the challenges faced by our clients, our people, and the communities we serve. While good companies challenge the status quo, great companies transform it into something better for all.
We are committed to finding smarter, more sustainable solutions—innovating tools, services, and strategies—to address the challenges faced by our clients, our people, and the communities we serve. Good companies challenge the status quo; great companies transform it for the better, creating lasting impact.
We continually strive for better solutions—innovative tools, enhanced services, and forward-thinking strategies—to address the challenges facing our clients, our teams, and the communities we support. While good companies challenge the status quo, great companies empower their people to transform it for the better.
We are committed to minimizing the environmental footprint of our operations by continuously improving resource efficiency and adopting sustainable practices. Our long-term vision supports the global goal of achieving net-zero greenhouse gas (GHG) emissions by 2050 or earlier, demonstrating our dedication to combating climate change and preserving the planet for future generations.
We integrate the interests, safety, and well-being of the communities in which we operate into our business decisions, ensuring we contribute positively to society. Through active support for philanthropy and volunteerism, we empower our employees to make a meaningful impact while fostering strong, vibrant communities.
We are dedicated to fostering a workplace culture that values diversity, respects human rights, and ensures zero tolerance for discrimination, violence, or harassment. By implementing industry-leading health and safety practices, we strive to maintain a work environment that prioritizes the safety and well-being of all employees, with the ultimate goal of zero serious safety incidents.
We operate with the highest ethical standards, adhering to our Code of Business Conduct and Ethics in all business activities. By maintaining transparency, fostering active stakeholder engagement, and building trust, we strengthen our governance practices to uphold accountability and drive long-term success.
Arco Assets Management quantifies greenhouse gas (GHG) emissions from operationally controlled, corporate owned or leased Operations and data centers located in the United States, Brazil, and Asia. This inventory process follows the Operational Control approach of the World Business Council for Sustainable Development (WBCSD) Greenhouse Gas Protocol to define its organizational boundaries and account for Scope 1 and Scope 2 GHG emissions from these domestic and international operations. Arco maintains an internal Inventory Management Plan (IMP) which records institutional, managerial, and technical procedures and processes used annually to collect and manage reliable, quality GHG data.
Consistent with previous years, Arco included the following greenhouse gasses: CO2 (Carbon Dioxide), CH4 (Methane), N2O (Nitrous Oxide), HFCs (Hydrofluorocarbons)
As outlined in Arco’s Global Environmental Commitment (December 2020), we continue to prioritize initiatives to minimize waste and reduce paper consumption. These efforts include promoting direct deposit, limiting the number of mailings and proxy materials sent to the same household, and utilizing electronic delivery and form completion whenever possible. When paper use is unavoidable, we partner with vendors who provide sustainable paper products.
Reducing our reliance on paper and plant-based products to communicate with and service our customers remains a key priority. In support of our sustainability goals and Zero Paper aspiration, Arco has partnered with reforestation programs, planting over 8,000 trees in Florida and Idaho in the summer of 2021 to help restore endangered ecosystems. We continue to raise internal awareness about paper consumption in both employee and customer communications, while accelerating digitization initiatives to enhance the customer experience and reduce paper use.
Arco also leverages tools like DocuSign for electronic contract signing, invoicing, and account openings, both in the U.S. and internationally. According to data from DocuSign, this initiative saved over 6 million sheets of paper in 2021, significantly reducing waste, water usage, and CO2 emissions.
2021 Results:
CO2: 1,098,026 lbs Waste: 128,367 lbs
Water: 2,134,071 Gallons Wood: 1,521 Trees
Arco’s Global Environmental Commitment was made to acknowledge the threat presented by global climate change and to address this important issue through our business operations and investments. This document describes the status of these Commitments as of December 31, 2021.
| Goals | Achievement |
|---|---|
| Achieve 65% waste diversion by 2025 | We not only reached, but surpassed this goal by attaining 78% in reporting countries by 2021 |
| Internal reduction of paper use in Arco business operations around the globe | We substitute paper for different electronic methods and partner with American forest to support zero emission |
| Grant $5 million to support response to climate related natural disasters by 2025 through the Arco foundation | Arco foundation has donated $3.1 million to support climate related disasters as of 12/31/2022. |
| Invest in companies and operations that reduce emission, waste generation and or water consumption | Our sustainable investments are detailed in our ESG report. |
| Allocate 10% of investment towards environment friendly companies and projects | 3.5% of our impact investments are in companies and projects that promote sustainability and resilience. |
| Develop internal and public ESG policy | The Arco investment team updated its responsible investment policy in March 2022. |
| Goals | Achievement |
|---|---|
| Continue bolstering our business continuation activities | All the properties managed by Arco have been assessed for flood risk. |
| Invest in businesses that promote and support resiliency | Outsourced Engineering to help develop decarbonization plans for some properties managed by Arco globally. |
Sustainability materiality assessments at Arco go beyond just financial risk to encompass broader business priorities, management practices, and performance by integrating both internal and external perspectives. Guided by the Global Reporting Initiative’s (GRI) Reporting Principles and its definition of material topics, this approach helps the company identify and understand the risks and opportunities associated with sustainability. The insights gained from these assessments serve as a critical input for shaping Arco’s sustainability strategy and reporting.
Refreshing the materiality assessment was a timely and essential step in understanding how recent global events have impacted both the world and Arco’s business. This marks our third materiality assessment, which is conducted every three years as part of our commitment outlined in our Global Environmental Commitment.
Arco assessed the materiality of 15 sustainability topics. To derive this short list of topics to evaluate, we analyzed 40+ topics informed by the Global Reporting Initiative (GRI) framework, benchmarked ESG frameworks, investor requests and industry peers and reviewed the 2018 materiality assessment. We then conducted interviews and surveys with investors to evaluate these topics’ relative prioritization and develop the materiality matrix.
Directors and investors were also asked to select topics for which Arco should focus its efforts, independent of the topics’ potential impact on the business or influence on stakeholders. The following three topics rose to the top:
Arco’s annual ESG Report covers the period of January 1–December 31, 2021, with key developments from early 2022 referenced for inclusion in future reports.
This report includes the parent company, wholly owned subsidiaries, and joint ventures across U.S. and international operations, with no material changes in boundaries from the previous period.
Before release, the ESG Report is reviewed by Arco executives from all business areas, including law, governance, ethics, compliance, regulatory reporting, risk, and financial management. Greenhouse Gas Emissions data is externally verified.
The Global Reporting Initiative (GRI) is the most widely recognized framework for sustainability reporting. This document has been prepared in alignment with the GRI Standards: Core option. The preparation process adheres to all GRI Principles for sustainability reporting, including the guidelines for defining report content and quality. The approach to determining content and boundaries draws from the Company’s previous reporting practices, investor feedback, and discussions with internal subject matter experts.
In October 2018, the Sustainability Accounting Standards Board (SASB) introduced 77 industry-specific standards to guide companies in disclosing material information. This report incorporates elements of the Insurance Sustainability Accounting Standard. SASB standards aim to highlight the key sustainability issues most likely to influence the operating performance or financial condition of companies within a given industry, regardless of their geographic location.
In June 2017, the Task Force on Climate-related Financial Disclosures (TCFD) released its final recommendations for disclosing climate-related financial information. The core elements of the recommendations are:
In 2015, the United Nations (UN) member states adopted the 17 Sustainable Development Goals (SDGs) to create a more sustainable future for all, leaving no one behind. These goals include ending poverty and hunger, taking climate action, promoting affordable and clean energy, and reducing inequalities. The SDG framework brings together society, governments, and businesses to drive positive change. Arco has integrated the SDGs into this report where relevant. For example, the 2021 green bond issuance aligns with SDG 7 (Affordable and Clean Energy) and SDG 11 (Sustainable Cities and Communities).
Arco Assets Management is signatory to the Net Zero Asset Managers initiative, supporting our commitment to driving the goals of sustainability and value creation across our investments and operations. The Net Zero Asset Managers initiative is a group of international asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050. Arco is fully in line with global efforts to limit global warming, and to supporting investing aligned with net zero emissions by 2050.
Arco Assets Management has partnered with the Principles for Responsible Investment (PRI) to demonstrate our commitment to responsible investment and top-tier environmental, social, and governance (ESG) practices. The PRI is a global leader in responsible investing, emphasizing the significance of understanding the investment implications of ESG factors. They support a worldwide network of investor signatories in integrating these factors into their investment and ownership decisions.
The Sustainability Accounting Standards Board (SASB) connects businesses and investors on the financial impacts of sustainability. SASB Standards enable businesses to recognize, manage, and relay financial material sustainability information to investors. SASB Standards are are developed using a process that is research based and market informed.
Investing in businesses that take ESG principles into consideration has been both monetary and environmental success. Arco has helped erect over 20,000 windmills globally. Our real estate development program (manufacturing plants, smart offices and homes) take environmental considerations into account and has yielded great monetary and environmental returns. That’s why all our new developments are being built according to LEED® Gold standards to address greenhouse gas emissions, energy efficiency, water use, indoor air quality, and other factors.
Our 40+ Arco Communities — sometimes called associate resource groups — empower our people to help lift the voices of everyone at Arco Assets Management. Arco Communities are driven by our associates who unite around common experiences and passions, becoming allies for inclusion and equity. Arco Communities represent a rich diversity of identities and interests, including race/ethnicity, gender identity, sexual orientation, faith, mental health and much more. The list is always growing, as our employees raise their hands to create new Communities for our people to connect.
