Schroders builds on its climate investing expertise with new Global Climate Leaders fund

Schroders is today announcing the launch of the Schroder ISF[1] Global Climate Leaders, further strengthening its focus on sustainability across its thematic Global Transformation Range (GTR).

The GTR is a suite of funds designed to give investors long-term exposure to the most powerful and persistent themes shaping the world’s future.

Schroder ISF Global Climate Leaders, managed by portfolio managers Simon Webber and Isabella Hervey-Bathurst, will aim to provide investors with exposure to companies benefitting from a competitive advantage due to their ‘climate change leadership’.

Climate leaders are companies that have ambitious targets to decarbonise, encompassing the likes of reducing their carbon emissions to carbon removal, consistent with achieving a 1.5 degree scenario or better under the Paris Agreement for climate change.

The fund will leverage the deep pool of knowledge and expertise of Schroders Global Climate Change team and will follow the same established investment process of the team's existing fund, the SISF Global Climate Change.

The fund is unconstrained and will look to allocate to 50-80 stocks spanning all geographies and sectors.

It is classified under the EU Sustainable Finance Disclosure Regulation as Article 8.

Simon Webber, Portfolio Manager of Schroder ISF Global Climate Leaders, Schroders, said:

“Achieving the goals of the Paris agreement requires a massive step change in the pace of emissions reduction globally. This fund will invest in those companies at the very forefront of making the necessary emission reductions.

“Institutions increasingly want to ensure that their assets are invested in strategies consistent with delivering rapid decarbonisation. This fund will help them achieve this, while targeting strong investment performance.”

Isabella Hervey-Bathurst, Portfolio Manager of Schroder ISF Global Climate Leaders, Schroders, commented:

“Historically companies have not been rewarded for investing to help decarbonise more rapidly than their peers. As society and policymakers pivot towards penalising inactivity and rewarding the companies that support tackling climate change, these investments will change from being a cost to a competitive advantage. We believe climate leaders will create more value while exhibiting lower risk.”

An investable universe has been created using company disclosures, climate initiatives and Schroders climate alignment tools, filtering the global equity universe for companies that have high long-term climate ambitions and effective near-term targets.

The fund’s investment team and Schroders Sustainability team will work closely to manage the criteria for inclusion and evolve the investable universe to ensure it remains a dynamic set encompassing only the most ambitious companies in the world.

Andy Howard, Global Head of Sustainable Investment, Schroders, added:

‘As we look ahead, climate change will be a defining driver of the global economy, society and financial markets. Our clients have increasingly recognised the risk it poses and we’ve seen growing demand for investment funds targeting investment in those companies leading the transition to a lower carbon world. Schroder ISF Global Climate Leaders is a ground-breaking and innovative fund that places decarbonisation at the heart of its approach.”

 

Read more on what makes a company a climate leader here.

 

[1] Schroder International Selection Fund