PLAN FOR NATURE
OUR PROGRESS
BREAKING DOWN THE SCIENTIFIC BARRIERS THAT PREVENT ACTION ON NATURE In 2021, we invested in natural capital thought leaders, natcap research (NCR), alongside Oxford Sciences Innovation. NCR has developed a natural capital mapping tool, NatCapMap, that enables landowners and investors to create a baseline for biodiversity, ESG and net zero carbon strategies. The tool uses world- leading science, modelling and datasets to measure the current value of natural capital based on its benefits; how to enhance the natural capital to maximise value; and providing reporting to track progress. Since it was launched in the UK in 2021, we and other organisations have used the tool in a number of high profile and successful projects. Our investment has also helped to scale mapping technologies beyond the UK and from September 2022, NatCapMap has been available to an international audience. MEASURING THE IMPACT OF COMPANY OPERATIONS ON NATURE The unsustainable impact of company operations on nature represents a threat to company resilience and, because of that, an investment risk. We have developed industry-leading models that provide our investors with insights into chosen metrics around nature risk, alongside more established ESG markers, like carbon and social indicators. One such model, SustainEx™*, is a framework that estimates the potential social and environmental costs that both companies and countries may impose, as well as the benefits they may provide, which are often not recognised within current economic and regulatory frameworks. SustainEx™ goes beyond typical approaches to measuring such risks, which often focus on a few, discrete indicators of company performance.
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*Schroders uses SustainEx™ to estimate the net social and environmental “cost” or “benefit” of an investment portfolio having regard to certain sustainability measures in comparison to a product’s benchmark where relevant. It does this using third party data as well as Schroders’ own estimates and assumptions and the outcome may differ from other sustainability tools and measures.
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