Engagement Blueprint unveiled to highlight global active ownership priorities
Schroders has launched its Engagement Blueprint, setting new standards on active ownership and targets on engagement for the firm’s equity and bond fund managers.
April 4, 2022 - The Engagement Blueprint will further enhance the company’s integration of sustainability and focus on active ownership across client portfolios, outlining Schroders’ process for engagement including methods of escalation, the factors by which the firm will evaluate sustainability related resolutions, and its outcome-based approach.
It also identifies the thematic areas that Schroders has chosen to focus future active ownership efforts, highlighting six core themes: Climate Change, Corporate Governance, Diversity and Inclusion, Human Capital Management, Human Rights, Natural Capital and Biodiversity.
Andy Howard, Global Head of Sustainable Investment, Schroders, commented:
“We are in an era of transition in many key areas, including climate change, equality, diversity and many more. Old ways of working are being upended and companies more than ever will need to adapt to thrive. As active managers, we have a critical role to play in supporting that transition. Engagement is one of the important tools we can use to influence the companies in which we invest.”
Schroders is taking a further step forward in sustainability leadership by introducing engagement objectives for fund managers and analysts. This will apply across the equities and fixed income desks and will form part of fund managers’ personal performance goals.
Fund managers can choose from the six core themes, as set out in the Engagement Blueprint, when considering their company interactions. The increased emphasis on company engagements reflects Schroders’ belief that active ownership can help in the generation of alpha for clients.
The engagements will be closely monitored by Rory Bateman, Co-Head of Investment and Head of Equities, alongside the Active Ownership team. Kimberley Lewis, Head of Active Ownership, Schroders, commented:
“As a global active asset manager, we are able to influence corporate behaviour through constructive and committed engagement with the companies and assets we invest in. Active ownership is a key element of the value we bring to our clients.
“Social and environmental forces are reshaping societies, economies, industries and financial markets. By encouraging management teams to adapt to those changes, we are able to strengthen the long-term value of those assets, enhancing outcomes for clients, and to accelerate positive change towards a fairer and sustainable global economy.
“The launch of our Engagement Blueprint sets out what active ownership means at Schroders, how we engage with the companies in which we invest and what our clients can expect from us.”
Schroders, which manages $990.9 billion[1] on behalf of its clients globally, has written to companies in which it invests and clients to inform them of the Engagement Blueprint. To view it in full, please visit Schroders’ sustainability website: https://www.schroders.com/en/sustainability/active-ownership/
For further information, please contact :
Jennifer Manser O’Rourke, Head of Corporate Communications, North America | + 1 212 632 2947 |
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Sarah Levine | +1 646 818 9289 |
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Schroders plc
Founded in 1804, Schroders is one of Europe’s largest independent investment management firms by assets under management. As at 31 December 2021, assets under management were £731.6 billion (€871.3 billion; $990.9 billion). The founding family remain a core shareholder, holding approximately 48% of the firm’s voting shares. Schroders has continued to deliver strong financial results. It has a market capitalisation of over £8 billion and employs over 5,500 people across 37 locations.
Schroders has benefited from the most diverse business model of any UK asset manager by geography, by asset class and by client type. Schroders offers innovative products and solutions across their five business areas of solutions; institutional; mutual funds; private assets & alternatives; and wealth management. Clients include insurance companies, pension schemes, sovereign wealth funds, endowments and foundations. They also manage assets for end clients as part of their relationships with distributors, financial advisers and online platforms. Schroders’ Wealth Management offering reflects their strategic ambition to provide wealth management and financial planning services to clients across the wealth spectrum.
Schroders’ strategic aims are to grow the asset management business, build closer relationships with end clients and expand their private assets and alternatives business. Schroders’ purpose is to provide excellent investment performance to clients through active management. The business channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if we deliver for clients, we deliver for Shareholders and other stakeholders.
Important Information: All investments involve risk, including the loss of principal. The views and opinions stated are those of the individuals quoted and are subject to change. This document does not purport to provide investment advice and the information contained is for informational purposes and not to engage in any trading activities. Reliance should not be placed on the views and information in the document when making individual investment and/or strategic decisions. Schroder Investment Management North America Inc. (“SIMNA Inc.”) is registered as an investment adviser with the US Securities and Exchange Commission and as a Portfolio Manager with the securities regulatory authorities in Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec and Saskatchewan. 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 the Financial Industry Regulatory Authority and as an Exempt Market Dealer with the securities regulatory authorities in Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Quebec, and Saskatchewan. SIMNA Inc. and SFA are 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.
[1] As at 31 December 2021
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.