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 2023 ESG report is available here.

Each of the listed funds for which we are the investment manager has its own annual ESG report. 2023 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.

[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. The TCFD disclosures for our two listed funds are available in their respective annual reports here:

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. At fund level, Solar II LP received a score of 92% in 2023 and Greencoat Renewable Income LP completed its first assessment receiving a score of 80%.

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 currently represent over 5,664MW of total installed net capacity. Together, these assets generated 12.3TWh of renewable electricity and heat in 2023, enough to power around 3.6 million homes 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.

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

The assets we manage contribute towards a net zero future and, in 2023, contributed to the avoidance of 5.7 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.

More information regarding ESG initiatives is made available in our annual ESG reports. The 2023 ESG report is available here

[2] As at 31 December 2023

Modern Slavery

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

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