ESG

The consideration of ESG factors is a key part of our approach to managing risks, identifying opportunities and delivering long term value for our clients.

Investing exclusively in renewable energy and energy transition assets, with a robust ESG approach

As governments and corporates aim to accelerate the energy transition, and as national policy evolves, Schroders Greencoat is well positioned to meet the growing demand for renewable energy and energy transition investment and the increased importance of ESG globally.

By investing exclusively in renewable energy and energy transition assets on behalf of clients, our core investment activities have direct positive outcomes for the environment through the replacement of fossil fuel electricity generation and associated greenhouse gas emissions.

We also recognise that we have further responsibilities beyond the carbon emissions savings our investments achieve. Across our portfolios, we are committed to responsible investment practices and robust governance. We continually strive to implement improvements in how we invest and operate assets to create long term value for all our stakeholders, including society at large. As a leading investor in the renewable energy market, we also have a responsibility to promote sustainable practices across the industry.

Annual ESG Reports

We report on our ESG related activities annually. A copy of the 2024 ESG report is available here.

Each of the listed funds for which we are the investment manager has its own annual ESG report. 2024 reports can be found through the links below:

Our approach to sustainable investment

Schroders Greencoat is committed to implementing responsible investment practices both before investment and throughout the lifetime of the asset.

We seek to ensure that all people working at our sites are safe and in fair employment. We strive to build lasting relationships with local communities and look after the animal and plant life that coexists with the renewable assets we manage. We play an active role in promoting effective operation, good governance and ethical business conduct throughout the renewable energy industry.

Our approach is guided by our ESG Policy and is reviewed regularly and adapted where necessary.

The principal considerations are listed below.

Pre-investment

  • Identify low carbon opportunities
  • Screen against investment restrictions
  • Rigorously assess ESG Risks and implement mitigation plans
  • Follow a tailored Investment Committee process

Ongoing management

  • Monitor and report on Health and Safety and Environmental matters
  • Manage impacts and habitat improvements
  • Engage with and support the local community
  • Perform due diligence on third parties
  • Establish minimum governance standards
  • Manage Joint Venture structures
  • Comply with laws and regulations
  • Ensure business integrity
  • Share best practice
  • Monitor and report on ESG issues and KPls in a structured way

United Nations Principles for Responsible Investment (PRI)

Schroders Greencoat is a signatory to the United Nations’ PRI through Schroders’ membership [1]. The PRI principles provide a voluntary framework to help institutional investors incorporate ESG factors into investment analysis, decision-making and ownership practices.

Schroders Greencoat represented the infrastructure module of Schroders Group PRI assessment again in 2024, which received five stars with a module score of 97/100 (above the module median). A summary of Schroders Group’s scores for the 2024 reporting cycle, reflective of activity in 2023, is available here. The Schroders Group PRI public transparency report is also available here.

[1] Following the 75% acquisition of Greencoat Capital LLP by Schroders plc in 2022.

Net Zero Asset Managers Initiative (NZAMI)

Schroders Greencoat is a signatory of the Net Zero Asset Managers Initiative, an international group of asset managers committed to decarbonising their portfolios to net zero emissions by 2050 or sooner, in line with the Paris Agreement. We believe that engaging with the wider industry to support investing aligned with net zero emissions is a crucial step in the transition towards a green economy and are proud to be one of the signatories committed to global efforts to limit warming to 1.5 degrees Celsius.

Task Force on Climate-related Financial Disclosures (TCFD)

The TCFD was created to improve and increase reporting of climate related financial information and its recommendations aim to establish consistent disclosures on climate related risks.

Schroders Greencoat supports the goals of the TCFD and aims to align with its disclosure recommendations. We also refer to them for guidance to address climate related risks and opportunities across the business. TCFD disclosures for funds can be found in their respective annual reports, made available to investors in each strategy.

Schroders Greencoat LLP is required to publish a public TCFD entity report under the Financial Conduct Authority (FCA) Handbook, Chapter ESG 2.2, TCFD entity reporting obligations. Schroders Greencoat LLP is also required to publish public TCFD product reports for certain investment vehicles to which it provides investment management services under the FCA Handbook, Chapter ESG 2.3. The entity report can be found here and product level reports can be found here.

Please note that climate-related disclosures are also available in Schroders Greencoat’s ESG Report (see above).

Global Real Estate Sustainability Benchmark (GRESB)

As a standardised, globally recognised framework, GRESB provides actionable and transparent ESG data and insights to financial markets. Infrastructure fund managers and asset operators use GRESB to assess their sustainability performance.

As part of our commitment to continuous improvement and greater disclosure, we have been assessing the suitability of the GRESB Infrastructure benchmark for renewable energy infrastructure. GRESB participation provides us with actionable information to contribute to our monitoring and management of sustainability risks.

In 2023, we carried out GRESB assessments for several funds and assets, with many of these completing the assessment for the first time. In 2024, both funds improved their scores year on year. GRESB results can be found in our 2024 ESG Report.

United Nations Sustainable Development Goals (SDGs)

Schroders Greencoat acknowledges the importance of the United Nations Sustainable Development Goals in addressing the global challenges facing the international community and is supportive of the 2030 targets.

As a leading manager of renewable energy and energy transition assets, we contribute to the SDGs in two core ways: through the creation of renewable energy (SDG 7) and climate action (SDG 13). As we increase our investment in energy transition assets, we also contribute to the promotion of sustainable infrastructure and industry (SDG 9).

SDG 7: Ensure access to affordable, reliable, sustainable, and modern energy for all

The assets we manage generated 15.8 TWh of renewable electricity and heat in 2024, enough to power the equivalent of 5.7 million homes with clean energy for a year [2].

SDG 9: Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation

We are increasingly investing into energy transition technologies and low carbon energy sources, such as green hydrogen and district heating. These technologies aim to enable the decarbonisation of hard-to-abate sectors and support sustainable industrialisation and innovation. Our battery energy storage systems also aid in integrating renewable energy sources into the grid. These investments therefore align with SDG 9’s aim of promoting sustainable industrialisation and innovation in infrastructure by enhancing the flexibility and reliability of energy systems.

SDG 13: Take urgent action to combat climate change and its impacts

The assets we manage contribute towards a net zero future and, in 2024, contributed to the avoidance of 7.5 million tonnes of CO2 emissions. We assess and report on the climate-related risks and opportunities associated with these assets, as well as take steps to reduce the carbon footprint of the portfolio across the funds we manage.[2]

[2] All data as of 31 December 2024. This data represents all operational assets managed by Schroders Greencoat and Schroders Capital Infrastructure Asia. Homes powered reflect the homes power equivalent based on national household average energy and heat consumption. Carbon avoided estimates the emissions avoided through the displacement of the marginal generator in each region or for each technology by the generation of renewable electricity, heat or fuels.

Modern Slavery

Please find the Company's latest Modern Slavery and Human Trafficking statement here. 

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