Schroders has launched a Net Zero Guide to support financial advisers in their understanding of the transition to becoming carbon neutral and assist engagement with clients on sustainable investing, ESG Clarity can exclusively reveal.
The guide aims to be a “go-to reference” for advisers, said Schroders, and includes information on how the world needs to balance emissions and absorption, and more on the science of climate change, such as how 40bn tonnes of carbon are emitted into the atmosphere every year.
It also covers the role investors can play, a roadmap to net zero by 2050 and how advisers are going to be an essential part of the transition as gatekeepers of private client capital.
Schroders flagged its research had found 75% of advisers have seen an increase in the number of clients asking for sustainable investment options and 83% of advisers are now including ESG criteria when selecting funds compared with only 42% two years ago.
However, the research also indicated advisers needed some help in interpreting the different investment solutions related to net zero and how to have conversations around this with clients.
Gillian Hepburn, head of intermediary solutions at Schroders, commented: “We are pleased to be announcing this next step in our sustainability journey.
“The Schroders Adviser survey indicated that many advisers still regard themselves as lacking confidence when discussing sustainability with their clients.
“We therefore hope this guide, and a further new client-facing guide covering the ‘A-Z of sustainable terms’, will support their client conversations.”
Alex Funk, chief investment officer at Schroders Investment Solutions, added: “This guide will build understanding, not only of the wider net-zero landscape, but also how we take account of climate change when managing the sustainable model portfolios.”
See also: Asset managers’ net-zero targets not showing real-world impact – [Research]