Schroders’ SustainEx™ wins awards for Most Innovative ESG Product at the ESG Investment Awards 2021

An independent panel of judges comprised of representatives from leading financial firms, academics and experts selected Schroders as the provider of the Most Innovative ESG Product at the annual ESG Investing Awards 2021.

Schroders proprietary tool SustainEx was selected as the most innovative ESG product due to its unique and granular quantification of ESG measures which the judges described as ‘thought provoking’ and ‘exceptional in a space that can be nebulous and qualitative.’

SustainEx™ is based on the understanding that companies create both positive and negative impacts on society, which are not captured by conventional investment performance measurement. SustainEx aligns ESG analysis with investment risk by viewing those impacts, together with current profits, through a common monetary lens.

The result is an aggregate measurement of company risk, a dollar cost or benefit, comparable across companies, funds and indices. SustainEx™ is based on over 700 academic studies, applied to 13,000 companies globally.

These awards focus on assessing and evaluating the best companies involved in all areas of ESG investing globally and are designed exclusively for banks, investment managers, research houses, ratings agencies, index and ETF providers and exchanges. 

Hannah Simons, Head of Sustainability Strategy, Schroders, commented:

“At Schroders we believe that companies do not operate in a vacuum, they are part of the societies from which they draw their employees, to which they sell their products and under whose laws they compete. Traditionally, they were largely able to focus on maximising current profits without much concern for the costs their actions created elsewhere in societies and economies.

“In recent years however, companies have been put under increasing societal and governmental pressure to take responsibility for the costs and impacts that their actions results in. We developed SustainEx to address what we saw as a gap in the existing approaches to investment analysis that didn’t account for sustainability and impact related risks and costs.

“SustainEx is focused on driving real change by providing investors with the opportunity to identify and quantify these impacts to ensure that they are reflected in investment decisions and valuations. We are therefore delighted to see that SustainEx has been recognised as the most innovative ESG product by ESG Investing.

SustainEx™ forms part of Schroders’ ImpactIQ; a set of tools combining a range of proprietary technologies driven by traditional and non-traditional data. These tools help our investors quantify the sustainability risks and impacts of assets in which we seek to invest. They enrich our research process and enable our investors to ask questions of how a company is managing its business, the impact this has on society and stakeholders or how they may be contributing to sustainable themes.

“We look forward to continuing to develop ImpactIQ, a suite of data generated sustainability and impact investing tools, with the aim of enriching our research process and enabling our investors to make informed investment decisions. For our clients, the tools help them understand how their investments are aligned with their ESG principles.”

Schroders now fully integrates Environmental, Social and Corporate Governance (ESG) factors into their decision-making across investments the firm manages, fulfilling our intention announced in November 2019.