Sustainable Investment Report Q1 2021
Read our latest insights on EU regulation, the US minimum wage debate, a pre-season voting outlook and the commitment we have made as part of the Net Zero Asset Managers Initiative. Our active ownership section showcases how we have been engaging with FTSE 350 companies on their net zero transition plans, banks on fossil fuel financing and auto companies on how they are preparing for a more digital world.
Authors
Last year was a transformational year for sustainability and this looks set to continue in 2021.
After a bumper year for flows into sustainable funds in 2020 this trend has continued, as they experienced positive flows in the first two months of this year, according to estimates by JP Morgan based on Lipper data.
In its 2021 update, the World Economic Forum’s annual global risks report highlighted that four of the five most likely risks business leaders identified were environmental. We also expect climate change to take centre stage this year ahead of the delayed COP26, which is scheduled to take place at the beginning of November.
In this report we put the spotlight on environmental issues too, with a number of climate-related articles.
These include a Q&A with Andy Howard, Global Head of Sustainable Investment, on Schroders' founding membership of the Net Zero Asset Managers initiative and how FTSE 350 companies have responded to our Group Chief Executive Peter Harrison’s request to prepare and publish their plans for a decarbonisation of the global economy.
We also look at how the transition to a low-carbon economy is going to impact banks and autos. The former sector, banking, is highly exposed to fossil fuels, an industry facing significant financial, regulatory and reputational risks, while the latter requires a shift in business model towards technology solutions.
Our analysts have engaged with companies in both sectors to better understand their exposure to these risks and opportunities.
Beyond climate, our latest report looks into a number of other key sustainability issues globally.
Meanwhile, the 2020 voting season saw companies switch to virtual annual general meetings (AGMs). Daniel Veazey, Head of Corporate Governance, shares his thoughts on what the 2021 season has in store.
Spoiler alert: virtual AGMs will certainly continue to play a role!
Read the full report here.
Important Information:
This document is issued by Schroder Investment Management Australia Limited (ABN 22 000 443 274, AFSL 226473) (Schroders). It is intended solely for wholesale clients (as defined under the Corporations Act 2001 (Cth)) and is not suitable for distribution to retail clients. This document does not contain and should not be taken as containing any financial product advice or financial product recommendations. This document does not take into consideration any recipient’s objectives, financial situation or needs. Before making any decision relating to a Schroders fund, you should obtain and read a copy of the product disclosure statement available at www.schroders.com.au or other relevant disclosure document for that fund and consider the appropriateness of the fund to your objectives, financial situation and needs. You should also refer to the target market determination for the fund at www.schroders.com.au. All investments carry risk, and the repayment of capital and performance in any of the funds named in this document are not guaranteed by Schroders or any company in the Schroders Group. The material contained in this document is not intended to provide, and should not be relied on for accounting, legal or tax advice. Schroders does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this document. To the maximum extent permitted by law, Schroders, every company in the Schroders plc group, and their respective directors, officers, employees, consultants and agents exclude all liability (however arising) for any direct or indirect loss or damage that may be suffered by the recipient or any other person in connection with this document. Opinions, estimates and projections contained in this document reflect the opinions of the authors as at the date of this document and are subject to change without notice. “Forward-looking” information, such as forecasts or projections, are not guarantees of any future performance and there is no assurance that any forecast or projection will be realised. Past performance is not a reliable indicator of future performance. All references to securities, sectors, regions and/or countries are made for illustrative purposes only and are not to be construed as recommendations to buy, sell or hold. Telephone calls and other electronic communications with Schroders representatives may be recorded.
Authors
Topics