Engagement Report
2023Funding the future is a privilege, we use it wisely and responsibly. Part of that responsibility involves using our influence to engage with managers and better understand their approach and influence change where necessary.
We believe that in order to navigate this changing world, and to protect and grow our clients’ capital, we need to be active owners.
Active ownership, through engagement and voting, involves using our influence to help companies adapt and thrive. It has long been a key part of our investment philosophy and is key to our Climate Transition Action Plan – how we intend to transition our assets under management to net zero by 2050 or sooner. Active Ownership, approached thoughtfully and with focus, helps management teams adapt to a changing world, strengthens the long-term competitiveness and value of their businesses.
Our active ownership over 2023
Our Wealth Management Engagement Report 2023 details our engagement activities in the last financial year. Our engagements are categorised into the six themes, aligned with Schroders’ "Engagement Blueprint.” These themes are focused on the sustainability issues that we consider most material to the long-term value of our investments.
Key highlights for our 2023 engagement have been:
- We engaged with all of the managers used in our core models on the topic of carbon emissions and net zero.
- Six fund managers confirmed an intention to set a net zero commitment specific to their funds as a result of our engagement.
- In 2023, we wrote to 93 asset manages outlining our recommendations on voting in AGM season. Over 75% of the managers responded, with 17 managers providing evidence of how they are meeting our recommendations.
- We surveyed over 200 asset managers in our annual firm-level questionnaire. We engaged with 40% of the managers identified as “laggards” on ESG matters in order to improve their ESG capabilities and practices. We aim to engage with the remaining laggard managers in H1 2024, ahead of releasing the 2024 ESG Survey.
- We made 14 targeted engagements focusing on human rights across our core and sustainable models.
"Our main priority when engaging is to help share best practise to encourage the development of a company, manager, or strategy’s ESG approach and credentials and influence change where necessary. Approached thoughtfully, we believe active engagement can help to strengthen the long-term competitiveness and value of the assets we invest in. Active ownership is therefore a key element of the value we believe we can bring to our clients."
Investment Director
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