Climate Change Investing
Climate change is the biggest challenge for the planet in the years and decades to come. We believe companies that recognise the threats and embrace the challenges early, or that form part of the solution to combat climate change, will ultimately outperform the broader market. Schroder ISF Global Climate Change Equity is an actively managed, thematic fund that invests in companies that will be positively impacted by efforts to transition to a low-carbon economy.Our world is changing
The earth’s surface is warming up at a never before seen rate. It is now clear that climate change poses grave environmental risks, but we are only just starting to understand the potential social and economic effects.
Many governments around the world have committed to achieving net zero emissions by 2050. But action to bring down greenhouse gases to combat climate change must accelerate if we are to meet global climate change goals:
- 2.0°C: Paris Agreement goal of limiting global temperature rises to 2°C above the pre-industrial baseline.
- 3.7°C: Current long-run temperature rise estimates. Find out more about the Schroders Climate Progress Dashboard here.
- 80%: Reduction of greenhouse gases per capita by 2050 is needed to meet the 2°C limit. To do so, a radical change in the structure of the global economy is required.
A climate for opportunity
An 80% reduction in greenhouse gases will require investments of around US$2tn a year into products and services that will help us transition towards a low-carbon future. This equates to US$20tn over the next decade - the value of the US economy.
The good news is that this transition is already happening now. It is increasingly clear that capital will flow more readily to businesses and industries which align with a net zero 2050 commitment, or better. Climate change investing is your chance as an investor to benefit from this transformation and capture the potential returns arising from it.
Source: New Scientist, Carbon Brief, IPCC
Identifying the climate change winners
New innovations to bring down greenhouse gases, while creating new sustainable growth and jobs, already exist today.
This video highlights the investment themes that we believe will flourish as we move towards a low-carbon economy. Companies that align with these themes will benefit from climate change.
About the fund
Schroder ISF Global Climate Change Equity is your chance to back the companies set to grow as we transition to a low-carbon economy. Begin your climate change investing journey today.
Investment Universe
Not your typical climate change fund
Climate change is going to impact every company, so we look for opportunities across a global, well-diversified opportunity set rather than limit ourselves to particular sectors.
We invest across a broad universe linked to five themes: clean energy, energy efficiency, sustainable transport, environmental resources and low carbon leaders.
Process
Diving deep
An active approach to managing the sustainability risks is no longer optional - it is essential. Having said that, it is also very difficult. At Schroders, we've developed a platform called ImpactIQ which enables investors to understand the direct impact their investments are having on society and the environment. Our fund managers and analysts use the data generated by impactIQ’s tools to interact more closely with companies on how they are managing sustainability challenges.
This also gives them the best opportunity to pick winning companies and ultimately, potentially deliver better returns for you.
Experience
We’ve been doing this a long time
The fund has been successfully running since 2007 and is one of the pioneers in its field. It benefits from the expertise of investment professionals with experience in sectors like technology, energy and utilities; exactly the ones set to be impacted by climate change. We also have a dedicated sustainability team who understand the science of climate change and how it links to economic trends.
Meet the fund managers
Meet the fund managers
Isabella Hervey-Bathurst
Portfolio Manager
Ready to begin your climate change investing journey?
Visit one of our distributor sites or contact your relationship manager to invest in the Schroder ISF Global Climate Change Equity.
Sustainability Capabilities
Social and environmental change is happening faster than ever. A forward-looking, active investment approach is needed to comprehend the impact of these forces.
Find out how Schroders combines sustainability insights with world-class investment expertise to deliver better outcomes for clients and society as a whole.
Disclosures
Schroder International Selection Fund is referred to as Schroder ISF.
This advertisement has not been reviewed by the Monetary Authority of Singapore. This is prepared by Schroders for information and general circulation only and the opinions expressed are subject to change without notice. It does not constitute an offer or solicitation to deal in units of any Schroders fund (the “Fund”) and does not have regard to the specific investment objectives, financial situation or the particular needs of any specific person who may receive this. Investors may wish to seek advice from a financial adviser before purchasing units of any Fund. In the event that the investor chooses not to seek advice from a financial adviser, he should consider whether the Fund in question is suitable for him. Past performance of the Fund or the manager, and any economic and market trends or forecast, are not necessarily indicative of the future or likely performance of the Fund or the manager. The value of units in the Fund, and the income accruing to the units, if any, from the Fund, may fall as well as rise. Investors should read the prospectus, available from Schroder Investment Management (Singapore) Ltd or its distributors, before deciding to subscribe for or purchase units in any Fund. Funds may carry a sales charge of up to 5%.