Schroders Rolls Out Engagement Blueprint, Sets New Standards on Active Ownership

Published on: 08 April 2022
by KnowESG

Schroders, the global asset manager, announced the introduction of its Engagement Blueprint, which sets standards for active ownership and targets engagement for analysts and equity and bond fund managers.

The firm has communicated to companies in which it invests and underscores the Engagement Blueprint in a letter to stakeholders. The asset manager looks forward to further enhancing its integration of sustainability and focusing on active ownership across client portfolios.

The six core themes that Engagement Blueprint comprises include Corporate Governance, Climate Change, Diversity and Inclusion, Human Rights, Human Capital Management, Natural Capital and Biodiversity.

Andy Howard, Global Head of Sustainable Investment, Schroders, said: "We are in an era of transition in many key areas, including climate change, equality, diversity and many more. 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 in supporting that transition. Engagement is one of the important tools we can use to influence the companies in which we invest.”

By adding engagement objectives for fund managers and analysts, Schroders takes another step forward in sustainability leadership. This will apply to both the equities and fixed income desks and will be factored into the personal performance goals of fund managers and analysts.

When considering their corporate interactions, fund managers and analysts can pick from the six core themes outlined in the Engagement Blueprint. The growing emphasis on corporate interactions underscores Schroders' belief that active ownership can help in the generation of alpha for clients.

Rory Bateman, Co-Head of Investment and Head of Equities, will monitor the engagements with the Active Ownership team.