Schroders joins Net Zero Asset Manager initiative, committing to support the goal of net zero GHG emissions
Schroders has joined 29 other global asset managers representing more than $9 trillion of assets in launching the Net Zero Asset Managers initiative. This leading group of asset managers commits to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5°C.
As part of this initiative, we commit to:
- Work in partnership with asset owner clients on decarbonization goals, consistent with an ambition to reach net zero emissions by 2050 or sooner across all assets under management;
- Set an interim target for the proportion of assets to be managed in line with the attainment of net zero emissions by 2050 or sooner; and
- Review our interim target at least every five years, with a goal of ratcheting up the proportion of assets covered until 100% are included, as efforts to structurally decarbonize economies play out.
Peter Harrison, Group Chief Executive, said:
“Climate change is one of the most pressing long-term issues that we face, and one that I expect to come further into focus as we look to the future. Companies have a fundamental responsibility and imperative to reduce their impact on the planet and re-orient towards a decarbonized economy.
“I’m incredibly optimistic about the power of finance to address the issues that we are currently faced with, and the importance of doing so amid the structural changes climate change demands. As an active asset manager who invests across the public and private markets spectrum globally, we have an important role to play in encouraging companies to plan for and execute on the transition towards net zero carbon emissions and limit climate change. This is why the Net Zero Asset Manager initiative is important to us – it supports us in partnering with our clients and the companies that we invest in to drive towards a more sustainable future for all, and encourages our peers and the wider industry to do the same.”
Sustainability has been an area of focus for Schroders for more than two decades, with our ambition and capabilities in this space continuing to grow and evolve in recent years and as we look to the future. Climate change and the need to reorient the global economy towards decarbonization is a key component of any discussion on sustainability.
We believe that climate change will be a defining driver of the global economy, society and financial markets over coming years, decades and beyond. Whether the global economy is rebuilt on less carbon intensive foundations or the temperature continues to escalate, investors will be unable to avoid its impacts. With close to half of the world’s GDP and over one-third of global greenhouse gas (GHG) emissions generated in countries whose governments have made commitments to decarbonize, the scale and extent of the disruption ahead are clear, making it increasingly important that we prepare for those changes. Our own proprietary climate risk measures, including Carbon VaR and Physical Risk, indicate that 10-20% of the value of most major markets is at risk from a climate transition in line with the Paris Agreement commitments.
As an active asset manager, investing in a broad range of asset classes around the world, we have a key role to play in encouraging companies and other stakeholders to act in their best long-term interests and address their own environmental impact and consider how they can reduce their emissions. This commitment to engage with investee companies on this subject is consistent with our ongoing focus on incorporating sustainability into our investment proposition, in line with the Impact Management Framework’s ABC framework.
We believe this commitment aligns with our fiduciary duty to assess and weigh all risks and opportunities in our investment process in order to maximize returns for our clients. It is acknowledged in our commitment to this new initiative that the scope to invest for net zero depends on the mandates agreed with clients and clients’ regulatory environments.
A full version of the commitment statement adopted by Schroders and other signatories, can be found here.
Media Contacts
Jennifer Manser, Head of Marketing & Communications, Americas at Schroders
212-632-2947
Jennifer.Manser@schroders.com
Katherine Segura, Prosek Partners
646-818-9266
Pro-schroders@prosek.com
Note to Editors
Schroders plc
As a global investment manager, we actively and responsibly manage investments for a wide range of institutions and individuals, to help them meet their financial goals and prepare for the future. The world is forever changing, and with our clients at the center of everything we do, we understand the need to continue to adapt and evolve our business in line with what matters most to our clients today, and in the future.
Our ongoing success is built on a history of experience and expertise, whereby we partner with our clients to construct innovative products and solutions across our five business areas consisting of Private Assets & Alternatives, Solutions, Mutual Funds, Institutional and Wealth Management and invest in a wide range of assets and geographies. By combining our commitment to active management and focus on sustainability, our strategic capabilities are designed to deliver positive outcomes for our clients.
We are responsible for $649.6 billion* assets of our clients, managed locally by 42 investment teams worldwide. As a global business with over 5,000 talented staff across 37 locations, we are able to stay close to our clients and understand their needs. We have over 200 years of experience in investment and innovation and remain committed to creating a better future by investing responsibly for our clients.
Further information about Schroders can be found at www.schroders.com/us.
Important Information:
Schroders’ commitments to this initiative are being made with the expectation that governments will follow through on their own commitments with respect to climate change, and in the context of Schroders’ legal duties to clients and unless otherwise prohibited by applicable law.
All investments involve risk, including the loss of principal. The views and opinions contained herein are those of the individuals quoted, do not necessarily represent Schroder Investment Management North America Inc.’s (SIMNA Inc.) and are subject to change. Sectors, industries and asset classes mentioned are for informational purposes only and should not be viewed as a recommendation to buy/sell. This communication is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for accounting, legal or tax advice, or investment recommendations. No responsibility can be accepted for errors of facts obtained from third parties. Reliance should not be placed on the views and information in the document when making individual investment and/or strategic decisions. The opinions stated in this document include some forecasted views. We believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee that any forecasts or opinions will be realized. Past performance is no guarantee of future results.
SIMNA Inc. is registered as an investment adviser with the SEC. It provides asset management products and services to clients in the United States and Canada. Schroder Fund Advisors LLC (SFA) markets certain investment vehicles for which SIMNA Inc. is an investment adviser. SFA is a wholly-owned subsidiary of SIMNA Inc. and is registered as a limited purpose broker dealer with FINRA. SIMNA Inc. and SFA are indirect, wholly-owned subsidiaries of Schroders plc, a UK public company with shares listed on the London Stock Exchange. Further information about Schroders can be found at www.schroders.com/us or www.schroders.com/ca. Schroder Investment Management North America Inc., 7 Bryant Park, New York, NY, 10018-3706, (212) 641-3800.
*as of June 30, 2020
The views and opinions contained herein are those of Schroders' investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.'s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.