At Schroders, we see ourselves as long-term stewards of our clients’ capital and this philosophy naturally leads us to focus on the long-term prospects for companies in which we invest. We believe successful investment is intrinsically linked to identifying, understanding and incorporating the effects of social and environmental trends in our investment decisions.
We look beyond the numbers and take a forward-looking, holistic view of the investment landscape. We consider how companies are interacting with their stakeholders and adapting to structural social and environmental trends, and the contribution this might have (both positive and negative) to their long-term success.
Our integration approach spans the breadth of the ownership lifecycle, from identifying trends and analysing companies through ownership, engagement, voting and reporting. We recognise that different asset classes, portfolio strategies or investment universes will require different lenses to most effectively strengthen decision-making.
Schroders has been incorporating ESG considerations into our fundamental research and security selection process for more than twenty years. We published our first corporate governance policy in 1998, followed by our responsible investment policy in 2001. Since then, the information and tools available to us, our resources, the depth of our expertise and our approach to integrating responsible investment principles has evolved, but our commitment has remained the same: to be active owners of the companies in which we invest and to reflect sustainability and ESG factors as part of our overall investment process.
We regard stewardship as integral to our investment process. Good stewardship is important to understanding the sustainable value of companies and provides a standard of behaviour to protect and enhance the value of our clients’ investments. We firmly believe that companies which are well governed and operate transparently, responsibly and sustainably, will have the culture to support the long-term health of the organisation and increase shareholder value.
- For the fourth successive year, Schroders has achieved the highest rating of A+ for our Strategy & Governance approach to responsible investing in the latest UN PRI 2018 assessment.
- We were rated No.1 in ShareAction’s 2017 Responsible investment survey of European asset managers.
- We were ranked in the top 5 in the 2017 AODP Global Climate 50 Asset Manager Index.
- We are a Tier 1 signatory to the UK Stewardship Code.
- In 2017, our dedicated Sustainable Investment team undertook 1,014 specialist ESG engagements, across 50 countries globally to understand how they are addressing issues we have identified and encourage them to take appropriate actions where we are concerned they are not doing so. We voted on approximately 97% of total valid resolutions, and instructed a vote against management at 42% of meetings. In total, we voted on 5,378 meetings.