We believe sustainable assets make for more resilient investments over the long run
Key to uncovering an asset’s true investment potential is understanding its impact on the planet and its people
We have developed a suite of cutting-edge tools that measure impact across the ESG spectrum
Profit margins. Potential growth. Market capitalization. There are many ways to evaluate a company’s worth. But companies don’t exist in a vacuum. The way they behave has real-life consequences – negative and positive. If you don’t take those into account, you aren’t getting the full picture. Take risk and return. That’s the traditional lens through which to judge investments. For us, that’s too narrow, which is why we bring in a third dimension: impact. By diving deep into a company’s environmental, social and governance factors we believe you are able to determine their true costs and ultimately their impact-adjusted profits.
That’s why when we build portfolios, we look at a vast array of impacts a company, bond issuer, or even government has on people and the planet. Those who ignore ESG factors are also ignoring the risks and opportunities companies and governments face. With society demanding responsible behavior and regulators mandating sustainable practices, these risks can translate into financial costs that can hit a company’s bottom line. So sustainable investing is not just about driving positive change, it also makes investment sense.
We want to see companies that are run better, in every sense of the word. So we don’t just judge them from the sidelines – we roll up our sleeves and get involved. Our active ownership ethos means we engage with the companies we invest in, with the goal of shaping them to be more sustainable - and therefore more resilient - over the long run.
There’s lots of talk about sustainability right now – but we’ve been talking about it for decades. Our sustainable investing experience goes back over 20 years, during which time we’ve developed a cutting-edge sustainability research platform and a suite of proprietary impact measurement tools, known as SchrodersIQ.
Our research and tools give us a clearer understanding how companies are exposed to both opportunities and risks. When you combine this with how we engage with companies, we believe it allows us a deep understanding of investment implications.
As a founding member of the Net Zero Asset Managers initiative, we’re shrinking our carbon footprint with our own science-based Climate Transition Action Plan – as well as influencing others in our industry to do the same.
We’ve also partnered with a number of organizations globally to improve social mobility, such as supporting underprivileged children in the US, addressing inequality in London or empowering women in India.
"As the performance of naïve, passive ESG strategies has faltered and the regulators circle the wagons, sustainable investing is at a critical juncture. Investors are clear that they need more quantifiable evidence of the value and impact of ESG, and more clarity and transparency into how this investing is practiced and measured."
Head of Sustainability, North America
Past performance is no guarantee of future performance. The value of investments and the income they produce can go down as well as up, and you (or your clients) might not get back what you originally invested. Our proprietary tools are designed to enhance the research and evaluation process but do not guarantee favorable investment results or the abatement of all risk.
For illustrative purposes only; does not constitute a recommendation to invest in the above-mentioned security/sector/country.
Access our sustainable investment policies, regulatory disclosures, voting reports and statements.
Through committed engagement with companies’ management teams, active ownership is a key element of the value we bring to our clients.
Our corporate sustainability strategy is embedded into our business, and aims to accelerate improving equality and protection of our planet’s resources.
Considering sustainability factors as a component of proper investing appears to be both necessary and unobjectionable. This applies to both ESG integration into investment decisions as well as active ownership.