PLAN FOR NATURE
OUR PROGRESS
MAKING NATURAL CAPITAL CENTRAL TO OUR ACTIVE ENGAGEMENT In 2022, we published the Schroders Engagement Blueprint, which places biodiversity and natural capital as one of six priority engagement themes in our approach to active ownership. We will engage with companies on four key natural capital and biodiversity issues faced by the companies in which we invest: 1. Nature-related risk and management 2. Circular economy, pollution and waste 3. Sustainable food and water 4. Deforestation The Blueprint won Environmental Finance’s ESG Engagement Initiative of the Year 9 for its holistic approach to ESG, and supports engagement objectives for fund managers and analysts across our equities and fixed income desks. These objectives also form part of fund managers’ and analysts’ personal performance goals.
Engagement Blueprint
ELIMINATING COMMODITY-DRIVEN DEFORESTATION We believe that ending commodity-driven deforestation in the companies held in the investment portfolios we manage is crucial to addressing the systemic financial market risks associated with climate change, nature loss and food security concerns. It is also in the best long-term interests of our clients and their beneficiaries. Political focus on the topic is rising and we expect growing pressure on companies to reduce their nature impacts. As a signatory of the Financial Sector Commitment Letter on Eliminating Commodity-driven Deforestation 10 we joined world leaders and leading financial institutions in committing to eliminate agricultural commodity- driven deforestation by 2025.Together, signatories represent US $8.7 trillion 10 in assets and we call on other financial institutions to join the pledge. Since COP26, we have implemented our internal deforestation scorecard to engage 20 priority companies and to inform our broader strategy. We are rolling out a targeted engagement programme for a wider set of companies. We believe these companies should significantly strengthen their commitments and action to eliminate commodity-driven deforestation by 2025, and promote and preserve their financial wellbeing.
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9 Environmental Finance, 2022 10 UNFCCC, 2021
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