Schroders

The financial institution publishes a detailed engagement report on sustainability impact topics and has a stewardship policy that supports environmental transitions and social best practices aligned with its sustainability strategy. Additionally, oversight of the sustainability strategy is assigned to the highest governance body, with performance criteria for senior executive remuneration linked to sustainability targets. It delegates the responsibility for implementing its sustainability strategy to specific functions or teams within the institution.

The institution does not make political contributions and discloses its membership in trade associations as well as its positions on lobbying and political engagement related to sustainability. It has a publicly available policy committing to respect ILO core labour rights and human rights. The institution identifies key sectors, clients, and investees for engagement on climate and nature-related issues, influencing them to develop strategies for nature protection and restoration. It also engages in partnerships to support these efforts. Furthermore, the institution provides examples of how its products and services aid support climate adaptation and resilience. It monitors its scope 1-3 emissions as well as emissions from associated financing activities (Scope 3 category 15).

While the financial institution identifies material financial risks related to sustainability, it has the opportunity to detail its impact materiality analysis and disclose the criteria used for identifying and prioritizing material impacts. It is recommended that the institution disclose third-party assurance for target reporting.

While it engages in public policy advocacy, there is an opportunity to clarify that lobbying efforts do not lead to adverse sustainability impacts. The institution discloses its exclusion of certain fossil fuel projects but does not address all fossil fuels. It also is recommended that the institution identifies and prioritizes sectors and areas with significant nature-related impacts. Although it mentions nature protection in various policies, a comprehensive strategy covering priority sectors is recommended.

Additionally, disclosing client breakdown by income group and processes to avoid unintended divestment from low-income countries is suggested. The institution conducts human rights due diligence but could improve by disclosing a risk assessment process related to ILO fundamental rights. It is also recommended to provide a process for mitigating risks associated with these rights and to disclose social risk identification related to the net zero transition. Lastly, an example of actions taken regarding salient human rights issues from recent assessments is recommended.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.