Schroders is providing clients the opportunity to offset carbon emissions from their underlying fund holdings by launching carbon offset share classes.
These share classes will be available as part of the Schroder International Selection Fund Global Climate Leaders, which invests in companies that evidence ‘climate change leadership’. The fund is managed by Simon Webber and Isabella Hervey-Bathurst.
Schroders will aim to ensure that the offsets purchased will equate to the Scope 1 and 2 emissions of the portfolio companies attributable to the share class. For example, if the share class holds 1% of a company, Schroders will calculate 1/100th of that company’s Scope 1 and 2 carbon emissions. Adding together all the equivalent exposures to carbon emissions, yields an estimate of the total carbon emissions attributable to the share class.
Andy Howard (pictured), Schroders’ global head of sustainable investment, said: “As a global investor, Schroders has a fundamental role to play in decarbonising the economy and our commitment to climate action goes back decades.
“We have accelerated investment in our own internal capabilities to help us measure and manage climate risks and are focused on pushing companies to transition.
“The next stage is to directly support our investors on this journey with these newly launched carbon offsetting share classes.”