Sustainability Consulting
Science Based Targets Partner Sustainability
Full Credential Description
Schroders, a global asset management firm, faced the challenge of aligning its investment strategies with climate change mitigation goals. Specifically, the firm aimed to reduce its operational and investment-associated greenhouse gas (GHG) emissions significantly. In 2021, Schroders committed to science-based targets validated by the Science Based Targets initiative (SBTi), with the goal of aligning its in-scope assets under management (AUM) from a projected 2.92°C in 2019 to 2.19°C by 2030, and further down to 1.5°C by 2040. This ambitious target included a commitment to reduce absolute scope 1 and 2 GHG emissions by 46% by 2030 from a 2019 baseline and to source 100% renewable electricity by 2025.
To achieve these targets, Schroders implemented a comprehensive decarbonization strategy that encompassed both its operations and the investments it manages. Key actions included transitioning to a fully electric company car fleet by 2030, reducing business travel GHG emissions by 50% by 2030, and ensuring that 67% of suppliers by emissions have science-based targets by 2026. On the investment side, Schroders focused on measuring climate risk through its Climate Risk Toolkit, engaging with portfolio companies to encourage ambitious decarbonization goals, and developing investment products that connect client capital to real-world emissions reductions.
The results of these initiatives are significant. Schroders has positioned itself as the largest asset manager with approved science-based targets, demonstrating leadership in climate action within the financial sector. The firm’s commitment to sustainability not only enhances its competitive edge but also sets a precedent for other financial institutions to follow suit in addressing climate change. By adopting the SBTi’s Financial Institutions framework, Schroders has ensured a rigorous and comparable approach to target setting, which is critical for driving industry-wide progress in climate mitigation.