UN PRI Reports 2019: Schroders scores well on strategy and governance

It is the fifth year in a row that Schroders has scored an A+ for its ESG strategy

Schroders has netted the highest possible rating for its ESG strategy and governance for a fifth consecutive year from the body backed by the United Nations (UN).

The global investment management firm secured the top rating from the Principles for Responsible Investment (PRI), the global investor initiative, which awarded Schroders an A+ rating for its strategy and governance on sustainable investment.

Schroders was given the rating for its approach to environmental, social and governance (ESG) investing within private equity. Its corporate non-financial approach to ESG fixed income investing also received an A+ rating.

The PRI provides the ratings as part of its global work to promote responsible investment. It also encourages firms to embed ESG issues in the process for all investment decisions.

The rating follows Schroders’ acquisition of BlueOrchard, a pioneer of impact investing and microfinance. Founded in 2001, BlueOrchard was the world’s first commercial manager of microfinance debt investments. The firm now has an established history of sustainable and environmentally-friendly investments across emerging and frontier markets.

While a component of Schroders’ ESG strategy, the deal also marked a wider trend across the industry: Schroders’ own Institutional Investor study found that 74% of investors around the world believe sustainable investing will grow in importance during the next five years.

Jessica Ground, global head of stewardship at Schroders, said: “We remain entirely committed to engaging on ESG risks that could prove material for our clients. As an active manager, we see sustainable investment as an integral and necessary part of our responsibility.”

  • Pictured: Peter Harrison, chief executive of Schroders.