Schroders today announces the launch of its Engagement Blueprint, setting new standards on active ownership and targets on engagement for its equity and bond fund managers and analysts.
Schroders has written to companies in which it invests to highlight its Engagement Blueprint. It further enhances the company’s integration of sustainability and focus on active ownership across client portfolios.
The Engagement Blueprint sets six core themes: Climate Change, Corporate Governance, Diversity and Inclusion, Human Capital Management, Human Rights, Natural Capital and Biodiversity.
Andy Howard, Global Head of Sustainable Investment, Schroders, commented:
“We are in an era of transition in many key areas, including climate change, equality, diversity and many more. Old ways of working are being upended and companies more than ever will need to adapt to thrive. As active managers, we have a critical role to play in supporting that transition. Engagement is one of the important tools we can use to influence the companies in which we invest.”
Schroders is taking a further step forward in sustainability leadership by introducing engagement objectives for its fund managers and analysts. This will apply across the equities and fixed income desks and will form part of fund managers’ and analysts’ personal performance goals.
Fund managers and analysts can choose from the six core themes, as set out in the Engagement Blueprint, when considering their company interactions. The increased emphasis on company engagements reflects Schroders’ belief that active ownership can help in the generation of alpha for clients.
The engagements will be closely monitored by Rory Bateman, Co-Head of Investment and Head of Equities, alongside the Active Ownership team.
Kimberley Lewis, Head of Active Ownership, Schroders, commented:
“As a global active asset manager, we are able to influence corporate behaviour through constructive and committed engagement with the companies and assets we invest in. Active ownership is a key element of the value we bring to our clients.
“Social and environmental forces are reshaping societies, economies, industries and financial markets. By encouraging management teams to adapt to those changes, we are able to strengthen the long-term value of those assets, enhancing outcomes for clients, and to accelerate positive change towards a fairer and sustainable global economy.
“The launch of our Engagement Blueprint sets out what active ownership means at Schroders, how we engage with the companies in which we invest and what our clients can expect from us.”