Schroders’ greenhouse gas emission reduction goals formally validated by the Science Based Targets initiative

18/02/2022
SBTi

Our greenhouse gas emission reduction goals have been formally validated by the Science Based Targets initiative (SBTi).

SBTi is a global programme that aims to encourage companies to set robust 1.5°C-aligned science based targets. We are among the first 20 financial institutions to be validated and the largest investment manager by assets under management. Our targets include reducing emissions from our own operations, as well as our ‘financed emissions’ i.e. the emissions arising from the companies in which we invest.

Our purpose is to provide excellent investment performance to our clients through active management. By serving clients, we recognise that we have an important role to play in shaping the future for all our stakeholders. Channelling capital into sustainable and durable businesses accelerates positive change in the world and the validation of our targets by SBTi is a significant indicator to the market of our commitment.

Andy Howard, Global Head of Sustainable Investment explains: “We believe that in order for businesses to survive and thrive they need to adopt long-term sustainable business models. Setting ambitious targets now will catalyse change to protect and enhance business value in the long term. Our dedication to achieving our reduction goals is paramount to our business strategy. We believe that in tomorrow’s investment world, profits and planet are interlinked.”

At the end of last year, we published our Climate Transition Action Plan which detailed our pathway towards operating as a net zero business and the three key elements we are focusing on to transitioning our clients’ investments:

1. Measure exposure and realign portfolios – understanding their exposure and progress of the challenge means investing in our industry leading tools and data sets and a robust approach to realigning our investments delivered through active investment management.

2. Track and hold companies to account – driving change in the majority of companies which have yet to reach net zero emissions, by holding those committed to doing so accountable for their progress and working with those that have not yet committed to transition to do so.

3. Take a solutions approach – supporting our clients to allocate capital to climate solutions and better-placed portfolios, by continuing to enhance reporting, expanding our range of climate-focused investment products and by developing tailored solutions that allow our clients to invest in assets that will support the climate transition.

Whilst the emissions from the investments we manage are significantly greater than those from our own operations, we also have a responsibility to decarbonise our own business. We will do this by implementing site-specific action plans in our properties, electrifying our company car fleet and increasing our renewable electricity consumption. We will also cut our business travel and encourage our suppliers to set their own science-based targets. Although our primary focus is on this decarbonisation plan, we will also continue to offset our operational greenhouse gas emissions so that we continue to be a climate neutral business as we transition to net zero.

“We believe we should lead by example in terms of managing and reducing the climate impact we have from our own operations,” says Madeleine Cobb, Head of Corporate Sustainability. “If every organisation focuses on decarbonising the emissions it can directly control and influencing those in its value chain, the whole system will change. Everyone can play a part in contributing to our climate goals and we want to help lead the way.”

Funding the future is a privilege; we use it wisely and responsibly.

Interested in learning more?

Read about our pathway to net zero in the Climate Transition Action Plan
See our performance in the CDP climate change questionnaire
How we use our influence with the companies we invest in on the topic of climate change, in our latest Sustainable Investment Report.

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