PLAN FOR NATURE
OUR PRIORITIES
OUR PROGRESS
BUILDING A VIEW OF COMPANIES’ COMMITMENTS AND ACTIONS TO END DEFORESTATION With around 80% of biodiversity on land residing in forests, credible action on nature must start with ending deforestation. 5 Companies face increasing physical, regulatory, operational and reputational risks from deforestation, so it’s critical that we understand how these risks may impact portfolios. We have built a scorecard that measures companies’ exposure to, and management of, forest-related risks. The aim is to develop a greater understanding of how company action can be improved, something Schroders is pursuing via our active engagement strategy. The scorecard focuses on five key dimensions: deforestation commitments and policies; company governance; supply chain mapping and traceability; no- deforestation certification and targets; and disclosure.
1. Continue to evolve our own methodologies and our
partnership activities to make our tools increasingly robust, comprehensive and actionable. That is critical to our ability to report on and – where possible – evidence positive impact, which underpins the difference we make alongside clients and the returns we can generate.
2. Apply our research and tools right across the business. For instance, modelling from NCR can be used to plan and report on new natural capital funds, as well as those of BlueOrchard, a leading global impact investment manager and part of Schroders. We’re also exploring ways to take this insight to renewable infrastructure manager Greencoat Capital, a recent Schroders acquisition, to model the natural capital exposure associated with their solar portfolio.
3. Share our learnings through client education and external stakeholder and policy engagement, to build collective expertise on natural capital as an asset class and grow support for new solutions.
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5 World Economic Forum, 2021
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