SNAPSHOT2 min read

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.

19/02/2020
emissions

Authors

Simon Webber
Lead Portfolio Manager

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.

Issued in the Channel Islands by Cazenove Capital which is part of the Schroders Group and is a trading name of Schroders (C.I.) Limited, licensed and regulated by the Guernsey Financial Services Commission for banking and investment business; and regulated by the Jersey Financial Services Commission. 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.

 

Authors

Simon Webber
Lead Portfolio Manager

Topics

Cazenove Capital is a trading name of Schroders (C.I.) Ltd which is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 2020 and the Protection of Investors (Bailiwick of Guernsey) Law 2020, as amended in the conduct of banking and investment business. Registered address at Regency Court, Glategny Esplanade, St. Peter Port, Guernsey GY1 3UF, (No.24546) . Schroders (C.I.) Limited, Jersey Branch is regulated by the Jersey Financial Services Commission in the conduct of investment business. Registered address at IFC1, Esplanade, St Helier, Jersey, JE2 3BX, (No.31076).

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