How we invest capital changes the world we live in

Sustainability is at the heart of both Schroders Capital and the Schroders Group. With investment strategies spanning across asset classes and themes and the long time horizon of private markets, we have the unique opportunity to accelerate positive change with the investments we make.  

We have an important role to play in creating a more sustainable future. At Schroders Capital, a dedicated team of Sustainability and Impact experts lead our efforts. We are supported by Schroders Group specialists and resources. Furthermore, we leverage BlueOrchard’s expertise in impact investing across private assets strategies and themes.

Schroders Capital’s approach to building change in a sustainable way is summarised by the following core attributes:

Intent

We strive to ensure that sustainability and/or impact are well represented in the investment objectives and complement the achievement of financial returns. We aim to select partners that are like-minded in terms of the change we target.

Contribution

Our integrated investment process seeks to contribute to ESG, sustainability and impact investing via a range of strategies and themes, including sustainable cities, climate mitigation and adaptation, financial inclusion, healthcare, industry and innovation, job creation and economic growth, amongst others. Active ownership and engagement expand our principles and their implementation across the entire value chain of intermediaries and stakeholders with whom we work.

Measurement

We collect an extensive range of sustainability and impact metrics to measure the effectiveness of our investments in achieving the goals we set for each strategy, theme or sector. We track positive and negative changes generated over time to enhance the effectiveness of our active ownership efforts and inform future investments.

Putting sustainability and impact at the core of the investment process

Our Sustainability and Impact framework is based on the Operating Principles for Impact Management (OPIM). This is to ensure that sustainability is embedded in all the relevant steps of the investment process from the strategic intent to origination and structuring, portfolio management, impact at exit and verification.

Embracing recognised accreditations

The Schroders group was an early signatory of the UN Principles of Responsible Investment (PRI), supports the UN Global Compact initiative and the Sustainable Development Goals. With a focus on climate change, Schroders is a founding member of the Net Zero Asset Managers initiative and have committed to setting a science-based target to reach net zero by 2050. We have also embarked on a corporate emission reduction programme and partnered with ClimateCare to offset the carbon emissions we are unable to remove. As members of the RE100, we will be switching to 100% renewable electricity for our offices by 2025. Across Schroders Capital, our commitment is to embrace full disclosure and transparency leveraging recognised sustainability and impact accreditation and certification.