Navigating our sustainability and impact product offeringA choice of investment options in a changing world
At Schroders, we integrate ESG factors into our investment decision making across our managed assets because we believe this is fundamental to our goal of delivering attractive long-term returns for our clients.* We also have investment strategies that go beyond integration. Schroders’ sustainable and impact offering spans publicly listed as well as private assets and provides a variety of ways to invest in a changing world.
When it comes to sustainable and impact investing, we recognise that our clients may have different objectives. Some may want a core portfolio allocation that adheres to clear sustainability criteria, while others may want to invest in specific themes such as the energy transition, healthcare innovation or decarbonisation. Some may want to have a specific and measurable real-world impact with their investments.
We developed our Global Sustainability and Impact Product Framework as a guide for our clients, when selecting Schroders-managed strategies, to achieve their specific sustainability goals. These strategies are available across the following broad categories:
Seeking sustainability at the portfolio level: Our Sustainable Tilt strategies seek to deliver financial returns through a portfolio with a more sustainable profile overall. These portfolios are generally expected to maintain stronger sustainability profiles than their benchmark, as defined by proprietary measures. They may also contain investment exclusions by reference to sectors or types of issuers.
Seeking sustainability at the investment level: Our Sustainable Driven strategies seek to deliver financial returns through investments where sustainability is a key component of the investment criteria. In addition to maintaining portfolios with stronger sustainability profiles than their benchmarks, they may also apply additional sustainability features, reflecting each strategy’s objectives. These include investments in companies that provide goods and services that help address social or environmental challenges, companies with strong sustainable business practices, or those which are on an improving sustainability trajectory. The sustainability attributes of one investment may vary from another.
Portfolio design with thematic focus: Our Sustainable Thematic strategies seek to deliver financial returns through identifying opportunities where we believe that structural changes, such as climate change, are creating potential for new sources of growth. These strategies may make investments in companies that are driving progress in specific sustainable themes, or those that stand to benefit from that growth, in addition to maintaining portfolios with stronger sustainability profiles than their benchmarks.
Seeking measurable change: Our Impact Driven strategies aim to contribute to measurable positive social or environmental impact goals alongside financial returns. These strategies are subject to highly selective investment criteria, for example, through the use of a proprietary impact scorecard. Our investment approach for these strategies is generally aligned with the Operating Principles for Impact Management.**
*For certain businesses acquired since 2020, we have not yet integrated ESG factors into investment decision-making. A small portion of our business for which ESG integration is not practicable or now possible, for example passive index tracking or legacy businesses or investments in the process of or soon to be liquidated, and certain joint venture businesses, is excluded.
**The Impact Principles were launched by the IFC (International Finance Corporation) in 2019. They are a set of overarching guiding principles for impact that are applicable across different asset classes, industries and institutions to standardise impact practices and mobilize capital into impact.
Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. All investments involve risks including the risk of possible loss of principal.