Climate change is an investment risk. We believe that companies urgently need to transform their business models to collectively avoid the most catastrophic effects of climate change on people and the planet and adapt to future temperature rises. That’s why we engage our investee companies to work out the most appropriate decarbonisation plan for their business models.
We believe there is value in following a net zero by 2050 trajectory plan. This contributes to future proofing companies by helping them to manage risk, capture the opportunities, and potentially deliver improved business performance. How a company responds to the challenges of climate change could be key to its bottom line.
For companies already on track to reach net zero, we continue to engage and vote as shareholders – holding them accountable for making meaningful changes and progress.
Active ownership at Schroders means engaging with companies and issuers and our assets to encourage responsible behaviour. By holding management to account we aim to strengthen the long term value of our investments.
Schroders is a world-class asset manager operating from 38 locations across Europe, the Americas, Asia, the Middle East and Africa.