Asset management giant produces new Engagement Blueprint, which aims to help drive company’s climate and ESG goals
Schroders has set out its stance on active ownership with the launch of an ‘Engagement Blueprint’, which introduces engagement objectives for its equity and fixed income fund managers and analysts.
The firm has written to its investee companies and clients to inform them of the new Engagement Blueprint.
When considering engaging with the companies in which they invest, Schroders fund managers and analysts will choose from six core themes set out in the blueprint, including climate change, corporate governance, diversity and inclusion, human capital management, human rights, natural capital, and biodiversity.
The introduction of engagement objects will apply across the equities and fixed income desks, and will form part of fund managers’ and analysts’ personal performance goals, Schroders said.
Rory Bateman, co-head of investment and head of equities, will be responsible for monitoring the engagements, alongside the asset manager’s active ownership team.
Schroders head of active ownership Kimberley Lewis said the firm is able to “influence corporate behaviour through constructive and committed engagement” with the companies and assets it invests in.
“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,” Lewis added.
Andy Howard, global head of sustainable investment at Schroders, called it “an era of transition in many key areas”.
“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,” he said.
“Engagement is one of the important tools we can use to influence the companies in which we invest.”
This article first appeared at Investment Week.