Our sustainable investment reports
We unlock value for you by knowing how to best put these sustainability principles into practice. Our reports detail the work that our teams do across the business to ensure your money is being managed in a responsible and sustainable way. Each quarter, we provide an update on the themes that we believe are changing the sustainability landscape. Our annual reports have been created to demonstrate our commitment to integrating environmental, social and governance (ESG) factors into our investment processes.
2024
Q3 2024 Sustainable Investment Report
In our third quarterly report, we reflect on the sustainability trends that shaped the 2024 proxy voting season and provide a case study on our engagement with Unilever. Our latest research uncovers the risks and opportunities presented by increasing global temperatures which have the ability to impact the present. We also share our latest insights on the spectrum of opportunities surrounding natural capital and biodiversity within private markets, as well as how salient human rights and financially material risks intersect in an increasingly turbulent world.
Q2 2024 Sustainable Investment Report
This quarter, we reflect on the importance of climate collaboration in driving climate action in a piece that outlines our approach to industry initiatives and a collaborative engagement case study. In addition, we share how deforestation engagement is a key lever to protect our investments and the planet. We also provide an insight into how assessing the externalities of our investments allows us to make more informed decisions regarding sustainability. Finally, following a trip to multiple Asian apparel factories we share insights that shape our engagement approach for various topics in the sector.
Q1 2024 Sustainable Investment Report
In the first quarterly Sustainable Investment report of 2024, we provide an update on the latest edition of the Engagement Blueprint and launch our inaugural blueprint for private markets. We look forward to the 2024 AGM season in our voting season outlook and showcase the insights from our engagements with hotels on the sustainability of the franchised business model. We also explore the opportunities within impact investing in real estate, how we’re using a framework to assess commodities’ impacts across their lifecycle and our sustainability considerations for sovereign debt.
2023
Q4 2023 Sustainable Investment Report
In the fourth quarterly Sustainable Investment report, we reflect on our commitment to working with our investees to create long-term value. We share insights from our roundtable discussions with FTSE 350 board directors, and our conversations with investees and clients on supply chain living wages. We reflect on our investment team’s engagement activity, finally taking a deeper look at how responsible stewardship can create value in infrastructure. We share our sustainability research insights from the quarter, including on the sustainability of lithium and solutions for a congested electricity grid. Finally, we provide an investors' guide to decarbonisation.
Q3 2023 Sustainable Investment Report
In our third quarterly report, we explore how we can make engagement more effective through our survey of 350 investee companies. We highlight our research and engagements in both human capital management and in the environmental performance of the UK Water sector. We also provide a perspective on the AI revolution, and share our joint research piece with Cornell University on physical risk in apparel supply chains. Schroders Capital discuss how they are investing to insure vulnerable communities against climate impacts and how they look at climate change in Insurance-Linked Securities. Finally, we celebrate our first milestone of receiving our first impact industry verification.
Q2 2023 Sustainable Investment Report
In the second quarterly report of 2023, we outline our rationale for co-filing a resolution at a US company’s AGM on sick pay, how we’re engaging with small cap companies on climate change, and how our credit team are holding mining companies accountable for their impact on nature. We share an insight into our Sustainable Research team’s materiality mapping, why we believe investing in the circular economy is so important for real sustainability, and finally how climate change considerations feed into our investment decisions in the Real Estate team.
Q1 2023 Sustainable Investment Report
This quarter, our sustainability insights include a snapshot of our latest research on green shipping, as well as a deep-dive into carbon markets. Our QEP team explore some of the performance headwinds of sustainable strategies over the last year. We also discuss how we approach sustainability and impact in private assets. Finally, we are delighted to have been awarded a top position among financial services companies in the latest Global Canopy Forest 500 ranking.
2022
Annual Sustainability Report 2022
Our Annual Sustainability Report 2022 describes the work we are doing in some key areas of our business to prepare for the uncertain world we are heading towards together. We showcase sustainability in practice, including an update on our progress towards our net zero ambitions and an introduction to our impact investment framework. We reflect on our active ownership strategy, and look at how our six priority themes work in practice. Finally, we share some of our key insights from the year, including our cybersecurity research and an introduction to our new thematic alignment tool, ThemEx.
Q4 2022 Sustainable Investment Report
In our fourth quarterly report, we reflect on the key trends from the 2022 AGM season. We also outline our approach to addressing the cost of living crisis through our active ownership and how we’re engaging with a metals and mining company on the climate transition. We outline the trends to watch for 2023, an introduction to our research on cybersecurity and the outcomes from the latest climate and nature conferences, COP27 and COP15. Finally, we hear from our Emerging Markets fund manager to hear how investors could help foster responsible consumption in emerging markets.
Q3 2022 Sustainable Investment Report
The third quarterly report of 2022 shares our approach to engaging with companies on their climate transition plans, and on human rights with companies that face the heightened risk of modern slavery. We also summarise the sustainability results of our flagship Institutional Investor Study. Other insights provided include our engagements with Apple, our biodiversity commitments and our thoughts on the upcoming COP27 and COP15 conferences.
Q2 2022 Sustainable Investment Report
The second quarter coincides with prime AGM season, therefore we focus on voting. In this report we highlight resolutions where we have publicly declared our voting intentions ahead of a company’s AGM. We also showcase how we are enhancing our proprietary sustainability toolkit, consider how one might apply sustainability considerations to sovereigns, explain the introduction of sustainability preferences in MiFID and look at how we can take a more holistic view of climate transition in North America.
Q1 2022 Sustainable Investment Report
Read about our active ownership approach, including our expectations of companies this AGM season, our director dialogue event and how we’re approaching climate engagement at Schroders. Other insights include the latest from our MyStory series, what it means to have had our science-based targets validated, our framework for avoided emissions analysis and why waste management is an issue investors should consider.
2021
Annual Sustainable Investment Report 2021
Our 2021 annual sustainable investment report showcases sustainability in practice across Schroders, including our recent climate commitments. We layout our plans for our six key themes for active ownership going forward, and look back at our engagement and voting activity in 2021. We share insights on assessing our impact on nature and on sustainable investing performance.
Q4 2021 Sustainable Investment Report
Our Q4 sustainable investment report introduces our new thematic approach to engagement and showcases the work we are doing to promote ethnic diversity on UK boards. We summarise the highs and lows from COP26 and take a closer look at our research and engagement on natural capital and biodiversity. Finally, we summarise the EU regulatory landscape.
Q3 2021 Sustainable Investment Report
Our new-look quarterly review hones in on our active ownership activities and puts the spotlight on the actions we are taking on climate. Read our round-up of this year's voting season and a case study on how we're engaging on ESG in Asian real estate credit.
Q2 2021 Sustainable Investment Report
Our Q2 sustainable investment report showcases our active ownership strategy. We share our approach to decision-making and effecting change, and we put the spotlight on the growing interest in shareholder resolutions. We also share how we have been engaging with housing associations and pushing for more transparency on sustainability, as well as a case study on our engagement with Carrefour.
Q1 2021 Sustainable Investment Report
Read our latest insights on EU regulation, the US minimum wage debate, a pre-season voting outlook and the commitment we have made as part of the Net Zero Asset Managers Initiative. Our active ownership section showcases how we have been engaging with FTSE 350 companies on their net zero transition plans, banks on fossil fuel financing and auto companies on how they are preparing for a more digital world.
2020
Annual Sustainable Investment Report 2020
Our 2020 annual sustainable investment report celebrates a key milestone for Schroders: achieving full ESG integration1. This report looks back at how our approach to sustainable investing and active ownership has evolved over the last two decades. We also share insights on our future ambitions, including our latest climate commitments and the expansion of our proprietary tool SustainEx™ 2 to measure country-level sustainability impacts, in addition to company-level impacts.
Q4 2020 Sustainable investment report
Read our latest insights on ESG integration, climate change, and how ESG is impacting US regulation. Under active ownership, learn more about how we have been engaging on the risks associated with thawing permafrost, forced labour in Singapore and how we are challenging Tesco on executive pay.
Q3 2020 Sustainable investment Report
Our quarterly sustainable investment reports showcase Schroders’ latest ESG research, engagement and voting activity. This quarter takes a closer look at SustainEx™ 2, the EU Green Deal, six ways we think the corporate world will have to change, and the results of our 2020 Global Investor Study. We also explore how Schroders has been engaging on diversity issues and, after five years of extensive engagement with Amazon, how Schroders escalated its engagement strategy with the company.
Q2 2020 Sustainable investment Report
Read our latest insights on the effects of covid-19 on employees, the environment, suppliers and other stakeholders, alongside broader climate change insights and a summary of our recent engagement and voting activity
Q1 2020 Sustainable Investment Report
Read insights from our Chief Executive Officer and Head of Sustainable Research on the sustainability impacts of Covid-19. Our analysts and fund managers share their latest research on climate change, sustainable cities and proxy voting trends for 2020. This report also unveils our new tiered approach to reporting on our engagement activity, accompanied by an engagement case study on the oilfield services sector.
1For certain businesses acquired recently we have not yet integrated ESG factors into investment decision-making. There are also a small number of strategies for which ESG integration is not practicable or 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 are excluded.
2Schroders uses SustainEx™ to estimate the net social and environmental “cost” or “benefit” of an investment portfolio having regard to certain sustainability measures in comparison to a product’s benchmark where relevant. It does this using third party data as well as Schroders own estimates and assumptions and the outcome may differ from other sustainability tools and measures.
2019
Annual Sustainable Investment Report 2019
Our 2019 annual sustainable investment report demonstrates our commitment to integrating ESG into our investment processes across asset classes and being active owners in the companies in which we invest. We share our latest insights on, plastics, climate change and divestment and introduce our newest sustainability tool, “MUSE” (Schroders’ Municipal US Sustainability Explorer). We also take a look at the new 2020 UK Stewardship Code and unveil our new approach to engagement reporting, supplemented by a high level overview of our voting and engagement activity during 2019.
Q4 2019 Sustainable Investment Report
Read our latest insights on climate change and ESG in emerging market debt, and an overview of our recent engagement and voting activity.
Q3 2019 Sustainable Investment Report
In our Q3 report, we provide our latest insights on climate change, electric vehicles, Amazon, proxy voting and ESG in value investing.
Q2 2019 Sustainable Investment Report
In our Q2 report, we provide an update on the current and future state of engagement and discuss how industries ranging from fashion, to aviation, to waste, will be transformed.
Q1 2019 Sustainable Investment Report
In our Q1 2019 report, we provide an update on the current state of play for sugar, and look at the legalisation of cannabis and climate challenges posed by feeding the planet.
2018
Annual Sustainable Investment Report 2018
Our 2018 Annual Sustainable Investment report demonstrates our commitment to integrating ESG into our investment processes across asset classes and being active owners in the companies in which we invest. We share our latest insights on our proprietary ESG tool SustainEx™*, climate change opportunities and ESG in passive. We also include a high level overview of our voting and engagements along with the key findings on sustainability from our global investor studies.
Q4 2018 Sustainable Investment Report
In our Q4 2018 report we go back to the future. We have long argued that truly sustainable companies are those that are well positioned for the seismic, environmental and social change that our world is facing. This quarter we look at some of the ways in which this change is manifesting in areas such as artificial intelligence, the effect of populism and ESG in emerging markets. As usual, we also share details of our ESG engagements for the quarter.
Q3 2018 Sustainable Investment Report
In our Q3 2018 report we examine how cyber risk continues to create significant costs for companies globally and how understanding the risk means going beyond a formulaic assessment of policies. We take a look at our Climate Change Dashboard one year on and the advances made in curbing the global temperature rises. As usual, we also share details of our ESG engagements for the quarter.
Q2 2018 Sustainable Investment Report
In our Q2 2018 report we examine the potential winners and losers throughout the value chain from the war on plastics, the overlooked physical risks from climate change and the benefits incorporating ESG considerations into defined contribution pensions. We take a closer look at shareholder resolutions and how we hold boards accountable on material issues, and also review the US corporate governance landscape.
Q1 2018 Sustainable Investment Report
In our Q1 2018 report we examine the emerging threat posed by auto financing – a market that represents a significant share of consumer debt in many developed economies. We also analyse the complexities of fossil fuel investing; investor action on gun control; and lessons on ESG best practice from leading asset owners. As usual, we also share details of our ESG engagements for the quarter.
*Schroders uses SustainEx™ to estimate the net social and environmental “cost” or “benefit” of an investment portfolio having regard to certain sustainability measures in comparison to a product’s benchmark where relevant. It does this using third party data as well as Schroders own estimates and assumptions and the outcome may differ from other sustainability tools and measures.
2017
Annual Sustainable Investment Report 2017
Our 2017 Annual Sustainable Investment report demonstrates our commitment to integrating ESG into our investment processes across asset classes and being active owners in the companies in which we invest. We share our latest research on climate change, an update on the sugar research we first published in 2015, some stewardship case studies and include a high level overview of our voting and engagements. We also highlight the key findings on sustainability from our global investor studies.
Q4 2017 Sustainable Investment Report
In our Q4 2017 report we examine the current opioid addiction crisis and the cost of killing pain. We analyse how accounting for human capital is a difficult job. We also look at UK fulfilment centres and the labour standards’ blind spot. We reveal highlights from the debate focusing capital on the Long Term. Included in this report is an update from the BankingFutures project as well as a feature on Corporate Governance Dialogue with Investors with a focus on emerging markets.
Q3 2017 Sustainable Investment Report
In our Q3 2017 report we explain how we analyse the investment impact of climate change through our Climate Progress Dashboard. We also look at the investment implications of resistance to anti-biotics; whether smoking or obesity poses a greater investment risk; and how culture fits in to the governance agenda. As usual, we also share details of our ESG engagements for the quarter.
Q2 2017 Sustainable Investment Report
In this quarter’s Sustainable Investment Report we explore corporate controversies concluding that ESG ratings are of little help in identifying companies that will face them. We also provide a summary of our new framework for ESG integration in sovereign bond investment and discuss Stewardship Codes and the erosion of shareholder rights. Our ESG engagements for the quarter are also shared as usual.
Q1 2017 Sustainable Investment Report
In our Q1 2017 Sustainable Investment Report we share our new Sustainability branding and our Intelligent investing approach with you. We also discuss carbon value at risk, the rise of founder-CEO firms, investor expectations on sugar, bribery and corruption in emerging markets, corporate governance in Australia and our public policy activities. As usual, we also share details of our ESG engagements for the quarter.
2016
Annual Sustainable Investment Report 2016
Our 2016 Sustainable Investment Annual report re-enforces our commitment to integrating ESG into our investment processes across asset classes and holding companies to account for their ESG performance. We share our latest research on climate change and process safety, case studies on engagements that produce change and some that have failed, and a high level overview on voting and engagements. We are also providing clarity on ESG terminology and updates on policy changes. Finally, to highlight the end consumer interest in ESG, we discuss the ESG results from our Global Investor Study.
Q4 2016 Sustainable Investment Report
In our Q4 2016 Responsible Investment Report we discuss ESG in Japan, financial consumer protection, improving viability statements and long term planning, debunking the ESG myths, the investor’s role in low-cost healthcare and the greener future of energy storage. As usual, we also share details of our ESG engagements.
Q3 2016 Sustainable Investment Report
In this quarter's Responsible Investment Report we look at climate risk at a portfolio level, ESG fund ratings, US corporate governance and the impact of recent modern slavery regulation in the UK. We also share details of our ESG engagement in this quarter.
Q2 2016 Sustainable Investment Report
In our Q2 Responsible Investment Report, we look at the road that led us to Brexit and why investors should be caring about sharing. We also bring you details of our ESG engagement this quarter, demonstrating how we are integrating ESG thinking into our investment processes.
Q1 2016 Sustainable Investment Report
Our Q1 Responsible Investment Report focuses on turning sustainable intentions into fiduciary practice. We also feature some of our thoughts on the oil and gas industries and how raising animal welfare standards can reduce risk. As usual, details of our ESG engagement for the quarter is also included.
Past performance is no guarantee of future performance. The value of investments and the income from them can go down as well as up, and you (or your clients) might not get back what you originally invested.