Schroders’ greenhouse gas emission reduction goals have been formally validated by the Science Based Targets initiative (SBTi).
Schroders’ Scope 1 and 2 targets are in line with a 1.5°C trajectory, according to the SBTi.
Scope 1 includes direct emissions from sources that are owned or controlled. Scope 2 includes indirect emissions from the reporting company’s use of purchased power, steam, heating, and cooling.
By 2040, all key assets under management are expected to be fully aligned with a 1.5°C route. The programme attempts to encourage businesses to align their business models with the Paris Agreement’s goal of limiting global warming to 1.5 degrees Celsius above pre-industrial levels.
Schroders is one of 20 financial organisations to have its goals legally certified by the initiative, and it is currently the largest investment manager by assets under management.
Schroders says it has increased investment in internal capabilities to assist in monitoring and managing climate risk and drive companies to transition as part of this strategy.
Schroders global head of sustainable investment Andy Howard says: “Schroders believes that in order for businesses to survive and thrive they need to adopt long-term sustainable business models. Setting ambitious targets now will catalyse change to protect and enhance business value in the long term.
“Our dedication to achieving our reduction goals is paramount to our business strategy. We believe that in tomorrow’s investment world, profits and the planet are interlinked.”
Schroders head of corporate sustainability Madeleine Cobb says: “We believe we should lead by example in terms of managing and reducing the climate impact we have from our own operations. In the process of improving our own environmental performance, we will engage our people and suppliers to support our climate goals.
In a statement the Science Based Targets initiative added: “The SBTi’s Target Validation Team has classified Schroders’ Scope 1 and 2 target ambition and has determined that it is in line with a 1.5°C trajectory. The SBTi commends Schroders’ 1.5°C-aligned target, currently the most ambitious designation available through the SBTi process.”