IN FOCUS6-8 min read

Investor's guide to decarbonisation: part 2 - implementing a net zero plan

Once a goal to reach net zero has been set and motivations and interim targets considered, the plan must be put into action. But how to actually decarbonise your portfolio? We answer this question in the second part of the decarbonisation client guide series.

31/08/2023
image showing solar panels

Authors

Barbara Wilson
Head of Sustainable Solutions
Ben Popatlal
Multi-Asset Strategist

We believe managing a portfolio along a decarbonisation pathway should not be mechanical, and should use all the tools available – with a particular focus on engagement before exclusion.

However, that engagement must be targeted, well documented and tracked to ensure the portfolio is on the right trajectory, and portfolio reallocation may be needed in addition to ensure the decarbonisation goals are met. Partnering with the right manager, with an appropriately designed mandate is paramount to achieving the right balance of strong risk-adjusted returns with the appropriate level of decarbonisation, adjusted to allow for the starting point of the portfolio.

Part one is available here.

Authors

Barbara Wilson
Head of Sustainable Solutions
Ben Popatlal
Multi-Asset Strategist

Topics

Decarbonisation
Sustainability
ESG
Environmental
Follow us

Schroder International Selection Fund is referred to as Schroder ISF throughout this website.

Schroder Alternative Solutions is referred to as Schroder AS throughout this website.

Schroder Special Situations Fund is referred to as Schroder SSF throughout this website.

For illustrative purposes only and does not constitute a recommendation to invest in the above-mentioned security / sector / country.

Schroder Investment Management (Europe) S.A. is subject to the UCITS law of 17 December 2010 and the AIFM law of 12 July 2013.