Climate+
A multi-private assets impact solution supporting the transition to a more sustainable future
High Impact
Aims to facilitate the transition to a more sustainable future through its investments in climate and social impact themes
Diversification benefits
Strong diversification across asset classes and geography in a single solution
Climate change solution
A portfolio targeted to deliver a positive contribution to climate change
Multi-private asset portfolio with a focus on climate and social impact
Our innovative Climate+ strategy aims to contribute positively to climate change and support the transition towards net zero economies throughout its investments. By building and operating a diversified portfolio across private markets asset classes and sectors focused on climate and social related themes, the strategy aims to facilitate the transition to a more sustainable future.
We recognise that the climate crisis is not the only challenge we face. This strategy also finances projects with clear social benefits, such as affordable real estate and governance.
Our long-term impact themes
Since the environmental & social challenges we face are complex, we focus on four key impact themes:
- Mitigation: Efforts to reduce or prevent emission of greenhouse gases through the use of new technologies & energy efficient equipment, or changing consumer behaviour.
- Adaptation: The process of adjusting to current or expected climate change and its effects. Building resilience to climate change for individuals and communities.
- Natural Capital and Biodiversity: The consideration of the world’s stock of natural resources, including soil, water etc.
- Social Vulnerabilities: The contribution to a more inclusive and equitable society, especially to vulnerable and underserved populations.
Effective, accessible, impactful
We believe that responsible private market solutions are an important part of any investment portfolio and should be widely accessible. That’s why we use a single portfolio to harness the best of Schroders Capital’s internal expertise and selected external capabilities to invest across infrastructure, real estate, private equity and natural capital.
We’ve coupled this with an innovative, open-ended evergreen structure. Not only does this mean you can invest on an ongoing basis, but by pooling these assets together it’s accessible to institutional investors of all sizes - including DC schemes.
A global climate solution with expert credentials
Every aspect of Climate+’s strategy benefits from our expertise. It uses a full range of specialist internal capabilities from Schroders Capital and best-in-class external manager funds such as natural capital. We also draw on the knowledge and experience of BlueOrchard, our impact investment business who have over 20 years of expertise in impact investing.
This all contributes to a solution with demonstrable positive impact, fully measurable using our comprehensive impact framework. That also means you’re fully informed on the benefits the portfolio is delivering, from negating carbon emissions to powering homes.
“Accompanying institutional investors on their journey to climate alignment gives us a unique opportunity to focus on how Schroders Capital can help meet the needs of people and the planet through a range of private asset classes and sectors. We are proud to direct and manage capital towards the Sustainable Development Goals and the transition to a net-zero world.”
Global Head of Impact
FROM ENGINEERING TO PIONEERING
In the world of private markets, there are two kinds of investors: those who respond to change and those who lead it. Discover standout opportunities across private markets.
Key Investment Risks
Certain strategies are subject to the ability to meet investment minimums. Some strategies may be offered only in private placement and/or discretionary accounts. There can be no guarantee these strategies will be successful or that the investment objective can be achieved.
While private assets investments offer potentially significant capital returns, funds and companies may face business and financial uncertainties. There can be no assurance that their use of the financing will be profitable to them or to any Fund. Investing in private asset funds and unlisted companies entails a higher risk than investing in companies listed on a recognised stock exchange or on other regulated markets. This is in particular because of the following major risk factors:
Investment risk: Private asset investments typically display uncertainties which do not exist to the same extent in other investments (e.g. listed securities). Private asset investments may be in entities which have only existed for a short time, which have little business experience, whose products do not have an established market, or which are faced with restructuring etc. Any forecast of future growth in value may therefore often be encumbered with greater uncertainties than is the case with many other investments.
Capital loss risk: 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.
Market risk: Market risk is the risk of investment losses due to negative effects of the capital markets on the overall performance of the fund.
Credit risk: The fund will have an investor commitment/draw-down funding model which exposes the investment vehicle to the credit risk of its investors. If an investor fails to comply with a drawdown notice, the investment vehicle may be unable to pay its obligations when due.
Liquidity risk: Given the illiquid nature of private asset investments, investing in private assets are subject to asset liquidity risk. This liquidity risk is a result of the likelihood that a loss from current net asset value would be realised if an asset in the fund needed to be sold quickly in the secondary market to meet the obligations of the fund.
Emerging market risk: Investments in emerging markets, or in funds that invest in emerging markets, are exposed to an increased level of risk resulting from the less developed nature of such markets and the institutions, legal system, and infrastructure within such markets.
Currency risk: Investments in companies or instruments which are denominated in currencies other than the fund’s respective currency expose the fund to the risk of losses in case foreign currencies depreciate.
Interest rate risk: The value of the fund’s fixed income investments may decrease if interest rates rise.
Valuation risk: Private asset investments are generally valued on a less frequent basis than listed securities. In addition, it may be difficult to find appropriate pricing references for private asset investments. This difficulty may have an impact on the valuation of the fund’s portfolio. Certain investments are valued on the basis of estimated prices and are therefore subject to potentially greater pricing uncertainties than listed securities.
Private equity risk: Compared to investments in public equities, investments in private equity involve a number of additional risks. Private equity-owned companies may be less mature with new or unproven management, technologies or business strategies and they may face competition from larger better resourced competitors. Private equity-owned businesses may be financed through extensive borrowings, increasing the risk of failure if cashflows are not sufficient to service the borrowing costs.
Real estate risk: Real estate investment is subject to a variety of risks including the cyclical nature of real estate values, general economic conditions, increases in property taxes, environmental risks, changes in laws (e.g. environmental and zoning) and the risk that one or more tenants may be unable to meet their rental obligations.
Infrastructure risk: The fund intends to invest in infrastructure assets with a focus on renewable energy and other sustainable infrastructure. The renewable energy sector greatly depends on political and governmental support for the increased use of renewable energy. Unanticipated changes to the applicable legal, regulatory and policy framework or the support provided could have a material adverse effect on the operations and financial performance of fund’s infrastructure investments.
Sustainability risk: The fund applies sustainability criteria in its selection of investments. This investment focus may limit the fund's exposure to companies, industries or sectors and the fund may forego investment opportunities that do not align with its sustainability criteria chosen by the investment manager. As investors may differ in their views of what constitutes sustainability, the fund may invest in companies that do not reflect the values of any particular investor.