Why we need to prioritise nature alongside the climate transition

The world has woken up to the vital role that nature plays in supporting our economy and society. With more than half of our global GDP dependent on the natural world, we believe that the reality is stark: nature risk is fast becoming an integral factor to investment risk and returns.

That’s why we regard the consideration of nature risk to be part of our fiduciary duty to clients.

At the same time, preserving and restoring nature can make a powerful contribution to efforts to mitigate climate change.

And there is a social dimension too: unless efforts to protect nature create positive social impacts for local citizens and indigenous communities, they won’t be sustainable over the medium to long term.

The direction of travel for businesses is clearer than ever: our global economy must become not just net zero, but also nature positive – and one is dependent on the other.

As a leading active investment manager, Schroders has an important role to play.

We make investment decisions every day on behalf of savers and investors around the world, and make these choices carefully and deliberately, because they may affect the financial future of our clients and impact the wider world.

That’s why we are setting out our ambition on nature: we want to harness the power of investment to accelerate a nature positive future. We believe this has the potential to drive better investment returns for our clients over time.

This document captures how we’re taking action to achieve this ambition – in our own business and in partnership with some of our clients and other stakeholders in the industry, and beyond.

We want to demonstrate our approach, our progress to date, and our future priorities.

We want to take a united approach right across our business to affect change just as we do to deliver our science-based targets on climate.

That includes embedding our approach through the investment insights we develop, the influence we can have on companies and offering innovative financial solutions to our clients.

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