25MAY 2023
Profit is only the beginning. When we invest, we should expect more than financial returns.
See why it pays to look further.
We believe sustainability is about making a positive impact with everything we do, from how we act as a corporate to the investments we make on behalf of our clients.
We all have the power to help create a sustainable and more prosperous world for all through our role in the financial system by allocating capital to areas that deliver both social and investment value.
Your capital is at risk with investing.
The way we direct capital not only shapes the financial returns we may achieve, but also the type of impact we have on the world.
Sustainable companies can have a positive impact on society and the environment. What’s more, their business models are more resilient and better placed to support long-term growth. So sustainable investing makes both investment and social sense.
Sustainability takes investing further than the traditional relationship between risk and return. A third dimension – impact risk – needs to be embedded into the investment process. Only by considering these three pillars together can we uncover an asset’s real investment potential and help to achieve the best outcomes for you.
Sustainable investing looks at both a company’s profits and how it generates them. This involves a fundamental shift in how companies are viewed and valued. Understanding the impact they have on society and the planet is crucial in determining their true costs. This is because negative activities are risks that can translate into a financial cost to a company. Identifying these risks means we can calculate their impact-adjusted profits.
This is the foundation of how we invest. Alongside risk and return, we consider a third dimension – impact risk – which is embedded into our investment process. Only by considering these three pillars together can we uncover a company’s real investment potential.
Your capital is at risk with investing.
impactIQ is our set of tools that measure the impact that companies have on society and the environment. Used as part of our investment process, impactIQ examines the externalities of companies, the risks that unsustainable practices pose to their business, as well as their overall alignment with the UN SDGs (Sustainable Development Goals).
Active ownership is a core part of sustainable investing. A regular and active dialogue with business leaders provides us with an extra dimension of understanding of how a company operates and its intentions. This is something that financial data alone cannot identify. We engage with the companies we invest in to help them transition towards a more sustainable business model.
Acting as a responsible corporate citizen is key to our success. Find out more about our approach and actions and read our latest progress update.
Find the latest sustainability videos, infographics and articles.
Schroders is a world-class asset manager operating from 38 locations across Europe, the Americas, Asia, the Middle East and Africa.
For any further questions, please contact us.
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