MARCUS BROOKES' VIEW

Responsible Investing

  • Marcus Brookes
  • 19 August 2020
  • 5 mins reading time

As the Chief Investment Officer of Schroders Personal Wealth, I’m acutely aware of the importance of responsible investment. One of the most exciting aspects of working with Schroders Investment Management is that it opens up a tremendous opportunity for responsible investing.

The term “responsible” encompasses a number of facets which are often summarised as the promotion of investments that are conscious of environmental, social and governance-related responsibilities, or ESG.

In future, I’ll be able to tell you more about the enhanced ESG principles and opportunities that we’ll be applying to our investments. For now, I’d like to share with you a sample of the resources and processes from which we’ll benefit through our association with Schroders Investment Management[1].

Resources

Schroders Investment Management has 22 ESG specialists with more than 210 years’ investment experience between them. The team has received an A+ rating from the United Nations-supported Principles for Responsible Investing every year since its inception in 2016.

Engagement

As a significant global shareholder with interests in thousands of companies, Schroders is able to engage with company directors through direct dialogue and by voting at company meetings. This isn’t just lip service: in the more than 5,800 company meetings at which Schroders has voted, it has gone against the respective company’s board regarding ESG issues 47% of the time.

Processes

Schroders uses its own tools and methods to analyse the ESG credentials of more than 9,000 companies. In addition to conventional research and analysis, Schroders has developed its own investment-driven ESG tools, CONTEXT and SustainEx. These equip Schroders with an up-to-date database of the ESG-related characteristics of thousands of shares, bonds, property, commodities and other investments.

Outcome

The goal is to achieve positive financial returns from responsible and sustainable enterprises. We, at Schroders Personal Wealth, want to be part of this, and I look forward to sharing more information about how we’re enhancing our ESG offering over the coming months.

[1] All of the information in this briefing is sourced from Schroders July 2020 document, “ESG Integration”.

Important information

Any views expressed are our in-house views as at the time of publishing.

This content may not be used, copied, quoted, circulated or otherwise disclosed (in whole or in part) without our prior written consent.

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In preparing this article we have used third party sources which we believe to be true and accurate as at the date of writing. However, we can give no assurances or warranty regarding the accuracy, currency or applicability of any of the content in relation to specific situations and particular circumstances.

Forecasts of future performance are not a reliable guide to actual results in the future; neither is past performance a reliable indicator of future results. The value of investments, and the income from them, may fall as well as rise and cannot be guaranteed and the investor might not get back their initial investment,

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