Sustainability

Risk, return and sustainability: the three dimensions of successful investment

Embracing change

Social and environmental change is happening faster than ever. Global warming, shifting demographics and the technology revolution are reshaping our planet. Against this backdrop the gap between investment winners and losers is set to widen and conventional financial analysis is likely to fall short.

How long-term investing is changing

The scrutiny of asset owners has never been greater. As well as ensuring that they meet their liabilities, from paying pensioners to preserving capital, there is the increasing expectation that they have a positive impact on the wider world. From improving corporate governance to limiting climate change, the pressure to create returns beyond the financial will grow. Our research shows stakeholders won’t compromise one for the other.

Analysis beyond the numbers

A forward-looking, active investment approach is needed to navigate these forces. This means understanding how a company interacts with society and its environment as well as analysing its profit lines. It means having a team of investment professionals who can apply experience and knowledge to specific situations and help manage the risks. Today, many investors want returns, but they also want their investments to provide better outcomes for society as a whole.

A leader in sustainability

We are rated the No.1 pan-European manager for Responsible Investment by ShareAction, a non-governmental organisation (NGO), and have an A+ rating from the Principles for Responsible Investment (PRI), a United Nations organisation.

We look beneath the surface at the factors that make a difference to investment outcomes, rather than accepting conventional wisdom on the ‘right’ approach to sustainability. We don’t tick boxes, but add value through real insight leading to better investment decisions.

Company analysis and engagement

We have built a proprietary tool called CONTEXT that provides a way to analyse a company’s relationship with its stakeholders and the sustainability of its business model. Data driven, it provides clear evidence on how companies are managing the most material issues and generates deeper insights for investors.

We also realise that there is always room for improvement in the companies that we invest in. We use our research to inform meaningful engagements - to shift perspectives and practices, and we monitor the outcomes of these conversations, enabling the delivery of more than financial returns.

Integrating sustainability

We don’t stop at equities but use our insights to inform decisions across asset classes and geographies.

Sustainability is a fast-moving area of investment. We are working with clients to develop the right solution that targets their financial requirements whilst considering the expectations of other stakeholders. We run bespoke strategies, from ethical to impact. Realising that we are on a journey, we share our insights and our research to help build a more sustainable future.

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Important Information
Any security(s) mentioned above is for illustrative purpose only, not a recommendation to invest or divest.
This material is intended to be for information purposes only and it is not intended as promotional material in any respect. The views and opinions contained herein are those of the author(s), and do not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. The material is not intended to provide, and should not be relied on for investment advice or recommendation. Opinions stated are matters of judgment, which may change. Information herein is believed to be reliable, but Schroder Investment Management (Hong Kong) Limited does not warrant its completeness or accuracy.
Investment involves risks. Past performance and any forecasts are not necessarily a guide to future or likely performance. You should remember that the value of investments can go down as well as up and is not guaranteed. Exchange rate changes may cause the value of the overseas investments to rise or fall. For risks associated with investment in securities in emerging and less developed markets, please refer to the relevant offering document.
The information contained in this material is provided for information purpose only and does not constitute any solicitation and offering of investment products. Potential investors should be aware that such investments involve market risk and should be regarded as long-term investments.
Derivatives carry a high degree of risk and should only be considered by sophisticated investors.
This material, including the website, has not been reviewed by the SFC. Issued by Schroder Investment Management (Hong Kong) Limited.

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Sustainable Investment Report Q4 2019

2019: The year when liquidity trumped growth

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Sustainability

Risk, return and sustainability: the three dimensions of successful investment

Embracing change

How long-term investing is changing

Analysis beyond the numbers

A leader in sustainability

Company analysis and engagement

Integrating sustainability

Explore all Strategic Capabilities

LiquidAlternatives

AlphaEquity

Credit

EmergingMarkets

Income

Multi-AssetSolutions

Retirement

Sustainability

Private Assets

Solutions

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