Schroders Case Study

Net Zero Asset Managers initiative: Target disclosure announcement – Schroders

What does your initial interim target look like?
We have set an initial target of 60% of AUM – approximately USD 396 billion – committed to be managed in line with net zero. We have started from a baseline year of 2019 and set mid and long-term targets of 2030 and 2040 respectively. Our mid-term target of 2.19°C covers Scope 1 and 2, while our long term one is 1.5°C also includes Scope 3 as indicated by the Partnership for Carbon Accounting Financials (PCAF) timeline.

Can you elaborate on the methodology and scenario you have used in setting this target and why you’ve chosen them?
– SBTi for Financial Institutions
– IPCC AR5 1.5°C

How did you approach deciding what to include in scope for your initial target?
Currently we have included asset classes that we have been able to obtain the required data for and have developed models to measure the financed emissions and temperature alignment of these assets. Currently these include listed equities and credit, but in future as more methodologies are developed, we will be able to add to the list and increase the proportion of our assets that are included.

What are you plans when it comes to setting a policy on coal and other fossil fuel investments?
We are planning to start disclosing our investments in fossil fuel sectors and have coal exclusions for our sustainable product range. We continue to keep our fossil fuel investment policy under review.