Responsible Investment

Schroders believes that companies have the ability to enhance their long-term performance through an understanding of the Environmental, Social and Governance (ESG) issues affecting their business. In an increasingly dynamic environment where legitimacy and credibility in the market place are important indicators of corporate performance, a thorough awareness of ESG issues enables companies to potentially mitigate risks and liabilities that could arise from these issues as well as realise opportunities.

Central to responsible investment is our belief that it is in our clients’ best interests to consider a company’s management of, and exposure to, ESG issues. Companies that combine good governance and corporate responsibility will tend to deliver long-term shareholder value over time.

In implementing our responsible investment activities we will:

• Commit to shareholder advocacy, by engaging with companies on ESG issues and performance and exercising our clients voting rights
• Integrate a consideration of ESG issues into our investment process
• Offer our clients ethical screening services to ensure that their funds are invested in a manner which reflects their moral objectives
• Ensure that we have suitable resources to effectively implement our approach to responsible investment
• Continue our industry involvement to promote responsible investment
We believe that our approach to responsible investment is in compliance with the UN Principles for responsible Investment. Our approach to Socially Responsible Investment is described in our SRI Policy.