Climate change is the biggest challenge for the planet in the years and decades to come. Addressing this will require a transition to a low-carbon economy. This will change societies, businesses and industries.
The good news is that the transition is happening now, and the technologies needed have become mainstream. Climate change investing is your chance to capture the potential returns from this transformation. Begin your climate change investment journey today.
The earth’s surface is warming up at a never before seen rate. It is now clear that climate change poses grave environmental risks, but we are only just starting to understand the potential social and economic effects.
Many governments are committed to limiting temperature increases, and industries are fast adopting carbon elimination plans. But action to bring down greenhouse gas (GHG) emissions to combat climate change must accelerate if we are to meet global climate change goals.
Paris Agreement goal of limiting global temperature rises to 2°C above the pre-industrial baseline.
Current long-run temperature rise estimates. Find out more about the Schroders Climate Progress Dashboard here.
Reduction of GHG emissions per capita by 2050 is needed to meet the 2°C limit. To do so, a radical change in the structure of the global economy is required.
An 80% reduction will require investments of around US$2tn a year into products and services that will help us move towards a low-carbon future. This equates to US$20tn over the next decade (the value of the US economy).
And even if national commitments are fulfilled, GHG emissions will eventually need to fall to zero or temperatures will continue to rise.
Dramatic economic transformation is needed if we want to achieve these goals. This creates huge investment opportunities for active managers.
Source: New Scientist, Carbon Brief, IPCC
New innovations are bringing down GHG emissions and its threat to our health and our economies, while creating new sustainable growth and jobs.
This video highlights the kind of businesses that will flourish in this new environment.
Schroder ISF Global Climate Change Equity is an actively managed, thematic fund that invests in companies we believe will be positively impacted by efforts to transition to a low-carbon economy.
Climate change is going to impact every company, so we look for opportunities across a global and diverse opportunity set rather than limit ourselves to particular sectors.
We do, however, exclude companies that generate significant revenues from fossil fuel.Fund prices and performance
We do not rely solely on traditional measures like carbon footprint. Using proprietary tools and analysis, we can build a more detailed and accurate picture of how companies and industries will adapt in a low-carbon world.
This gives us the best opportunity to pick winning companies and ultimately, potentially deliver better returns for you.Sustainability research
The fund has been successfully running since 2007 and is one of the pioneers in its field. It benefits from the expertise of investment professionals with experience in sectors like technology, energy and utilities; exactly the ones set to be impacted by climate change. We also have a dedicated sustainability team who understand the science of climate change and how it links to economic trends.Meet the team
Social and environmental change is happening faster than ever. A forward-looking, active investment approach is needed to comprehend the impact of these forces.
Find out how Schroders combines sustainability insights with world-class investment expertise to deliver better outcomes for clients and society as a whole.