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 USD 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 decarbonisation 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 decarbonise 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 decarbonised 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 decarbonisation is a key component of any discussion on sustainability.

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 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.

For clients that request their assets be excluded from this initiative, we will continue to offer them strategies in line with their return, risk, and sustainability needs and expectations.

A full version of the commitment statement adopted by Schroders and other signatories, can be found here.