How we hold companies to account on their climate change plans
In this short video, Simon Webber explains how Schroders assesses the credibility of companies' climate change plans.
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Recently there has been a huge up swell in corporate planning, activity and targets around climate change, which is a hugely positive development.
However, it is important that we evaluate how credible these plans are.
The first really important thing is to look at whether these are long-term objectives. For example, are they looking to become net zero emissions by 2050? Or are there near-term milestones, such as five-year targets and real measurements, that we can hold companies accountable to?
Secondly, we need the sources of those reductions. Are they coming from real improvements in the companies' operations or are they reliant on things such as carbon offsets? These can be important, but they are not the same as reducing those emissions at source from those companies.
So, when we hear about these plans from those companies, our approach is to really look at the real reductions the company is going to achieve in their climate change plans.
We can then evaluate what that means for investors and the companies' contribution to climate change.
This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.
This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.
All data contained within this document is sourced from Cazenove Capital unless otherwise stated.
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