Schroders has announced that its greenhouse gas emission reduction goals have been formally validated by the Science Based Targets initiative (SBTi).
The SBTi has confirmed that Schroders’ Scope 1 and 2 targets are in line with a 1.5°C trajectory. The relevant assets under management are also targeted to be fully aligned with a 1.5°C pathway by 2040. The initiative aims to encourage companies to align their business models with the objective, set out in the Paris Agreement, to limit global warming to 1.5°C compared to pre-industrial levels.
Globally, Schroders is among the first 20 financial institutions and to date, the largest investment manager by assets under management to have its goals formally validated by the initiative. The targets include Schroders’ own operations, as well as our ‘financed emissions’ i.e. the emissions arising from the companies in which we invest.
As part of this focus, Schroders has accelerated investment in our own internal capabilities to help us measure and manage climate risk and to push companies to transition.
Andy Howard, Global Head of Sustainable Investment, Schroders, commented:
“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 planet are interlinked.”
Madeleine Cobb, Head of Corporate Sustainability, Schroders, commented:
“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.”
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