Sustainable investing for a changing world

The trade-off between risk and return is well understood by investors. Sustainability is the third dimension, a forward looking holistic approach to investment.

Social and environmental change is happening faster than ever. The challenges posed by climate change, inequality and demographics are sizeable. Those companies able to adapt and thrive will continue to benefit disproportionately, while others will fall further behind.

For fund managers navigating this backdrop to deliver value is a challenge. Our answer to this is sustainable investing. We focus on identifying sustainably managed businesses, understanding the risks and opportunities of environmental and social change, and actively engaging to improve companies behaviours and governance. At Schroders this is how we believe we can create real long-term value for our clients.

Our experience and expertise

Source: Schroders, as at 31 December 2018
1 As at 31 December 2017.
2 PRI, 2015, 2016 and 2017 Assessment Reports.
3 ShareAction, "Lifting the Lid: Responsible Investment Performance of European Asset Managers", March 2017.
4 Asset Owners Disclosure Project, "Global Climate Index 2017“, April 2017.
5 Financial Reporting Council 2016 Assessment.

 

Companies at the centre of analysis

Companies are at the centre of the framework and we monitor their abilities to navigate the social and environmental trends in their industries. This understanding is key to analysing a company’s effective ownership and management for us to see the company as a good long term investment. ESG analysis is unlikely to present a performance signal in isolation, but as part of an integrated view of a company it can be compelling.

Source: Schroders.

 

ESG engagement

As an active manager, company engagement happens on a daily basis across Schroders. The aim of our engagement is threefold:

  1. To encourage companies to adopt longer-term approaches to their stakeholder relationships;
  2. To improve investment insights on emerging risks and opportunities; and
  3. To generate better returns.

Source: Schroders, as at 31 December 2018.

Find out more

Please visit the Integrity page to discover how we uncover long-term potential, together with our ESG policies.

Also check out the Influence page to see how we use our vote to act in your best interest.

Please visit the Insights page to explore our investment insights through a sustainability lens.

Knowing what to do with insights is the key that unlocks value for you. Find out how our analysis applies in practice from the Interpret page.

Our business is structured around a number of strategic capabilities, which combine to meet a variety of client requirements. Please visit the Strategic Capabilities - Sustainability page to discover how we sustainably deliver long-term value in a fast-changing world.

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