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The United Nations Principles for Responsible Investment (UN PRI)

What is the PRI?

The PRI is the world's leading proponent of responsible investment. It works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions.

What are the Principles for Responsible Investment?

United Nations Principles for Responsible Investment (UN PRI) are based on accepted international conventions, which are targeted corporate investors. The six Principles for Responsible Investment are a voluntary and aspirational set of investment principles that offer a menu of possible actions for incorporating ESG issues into investment practice.¹

Schroders has been a signatory since 2007 and fully supports the PRI six principles. Below shows how we comply and the extent of external involvement.

1.   We will incorporate ESG issues into investment analysis and decision-making processes

  • Full ESG integration
  • Integration assessed and monitored using accreditation framework
  • Dedicated firm-wide ESG policy
  • Dedicated sustainable Investment team
  • Investment champions to support firm-wide integration efforts
  • Long-standing ESG training programme for financial analysts and portfolio managers
  • Proprietary investment-driven ESG analysis tools for our investors Schroders' sustainability web pages
  • All ESG research shared on our proprietary global research platform

2.   We will be active owners and incorporate ESG issues into our ownership policies and practices

  • Engaging with companies and actively voting at AGMs for several decades
  • Dedicated active ownership policy
  • Global voting strategy, aiming to vote on all resolutions in line with firm-wide ESG policy and best interests of clients
  • Dedicated corporate governance team to analyse and vote on resolutions globally
  • External engagements conducted by ESG & financial analysts, both bilaterally and collaboratively Case studies in quarterly and annual sustainable investment reports
  • Digital infrastructure to effectively record engagements and monitor progress
  • Dedicated active ownership pages including investee expectations
  • Defined top-down thematic engagement priorities

3.   We will seek appropriate disclosure on ESG issues by the entities in which we invest.

  • Active engagement with companies to encourage greater transparency. For example, in January 2021 our Group Chief Executive sent letters to FTSE 350 companies urging them to share their detailed, costed net zero transition plans in 2021. We expanded the engagement to a number of North American and European companies later in 2021
  • Active engagement with companies to encourage greater transparency
  • Participation in collaborative disclosure initiatives to improve disclosure standards such as TCFD & CDP

4. We will promote acceptance and implementation of the principles within the investment industry

  • Members, leaders and participants of various forums and networks
  • Collaboration with other investors to promote and develop responsible investment principles and practices, including the PRI, International Corporate Governance Network, The Asia Investor Group on Climate Change, and Hong Kong Green Finance Association
  • Sponsorship and support of responsible investment initiatives, including hosting conferences, seminars and workshops
  • Submissions to regulators, trade associations, legislators and other bodies
  • Working with clients who are considering becoming members of the PRI to help them understand the benefits and practicalities of membership
  • Publicising responsible investment events to clients and encouraging attendance
  • Trustee training and ongoing client education on responsible investment and ESG trends

5.   We will work together to enhance our effectiveness in implementing the principles

  • Collaboration with other investors, sharing information and exchanging our views
  • Active participation in industry networks such as the PRI where we sit on both the Sustainable Development Goals Advisory Committee and the Stewardship Advisory Committee, International Corporate Governance Network, Asian Corporate Governance Association, UK Sustainable Investment and Finance Association, Hong Kong Green Finance Association and CDP
  • Responding to industry & public policy consultations directly and via group initiatives such as the IA and EFAMA

6.   We will each report on our activities and progress towards implementing the principles.

  • Integration case studies reported across asset classes at least annually
  • Engagement and voting case studies and progress reported at least quarterly
  • Regular research and insight papers on ESG and responsible investing published Schroders insights
  • Best practice case studies included in reports and publications
  • Sustainability measures are now incorporated into fund level reporting for sustainable funds

¹ Source: https://www.unpri.org/about