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.

Until a decade ago, environmental and social considerations did not really register in the investment industry outside niche ethical or green corners.

The UN Principles for Responsible Investment which were launched in 2006 kick started a change and required investors to consider ESG factors as part of their investment decisions, ownership, engagement and reporting.

Over a decade the PRI has gone from launch to counting over nine in every ten of the largest fund managers in the world as signatories.

Schroders have been conducting business in this way long before the principles were launch due to our strong ESG convictions, beliefs and as part of ingrained investment approach. We became a signatory in 2007.

ESG Trend:  It’s important to other asset owners too

Source: PRI Web-site, as at 30 April 2017.

 

ESG has moved from niche to mainstream

Interest, demand and sophistication are on the rise

Source: Hightail (news search for articles containing “sustainable investing” relative to all articles referring to “investing”, Principles for Responsible investment (number of signatories) and EuroSIF (combined AUM invested in different ESG strategies, adjusted for double-counting).

 

Global ESG assets by region

Source: ‘2016 Global Sustainable Investment Review’, Global Sustainable Investment Alliance (GSIA),*Proportion of SRI assets relative to total managed assets. Survey done every two years.

 

Evolution by strategy

Source: 2016 Global Sustainable Investment Review, Global Sustainable Investment Alliance, GSIA. Survey done every two years.

Find out more

Please also check out the brochure where we layout Schroders’ view on the landscape of activities, strategies that fall under the broad umbrella of ESG and sustainability, and our assessment of the terms most commonly associated with each.

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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