Schroders launches Sustainability Scorecard for financial advisers

by | Oct 25, 2022

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Schroders has launched its Sustainability Scorecard Initiative for financial advisers, a tool which will enable advisers to assess and compare the sustainability of their own businesses.

According to Schroders 2022 Annual Adviser Survey, client demand for sustainable investment solutions continues to increase, and there is an expectation that financial advisers should help their clients understand the options available. However many advisers still assess their capability to discuss this key topic with clients as ‘middling or below’.

Whilst Schroders can deliver support and education for advisers in many forms e.g. via face-to-face presentations and digitally, the Scorecard is designed to be a more engaging way for advisers to continue to upskill by considering the sustainability credentials of their own business. For example, the Scorecard can help advisers consider key factors such as carbon offsetting and the consumption of clean energy.

Gillian Hepburn, Head of UK Intermediary Solutions at Schroders, commented:

“We continue to look at how we can support advisers with education on sustainability and have questioned whether this could be delivered in a more engaging way. As many advisers are considering an exit strategy, in the same way that we use our proprietary tools to assess the E,S and G credentials of a company we might want to invest in, surely the same should be applicable to an adviser business in addition to the usual metrics of risk and reward.  

“Assessing E, S, and G risks is therefore important  and, in particular, the Scorecard might help advisers identify the social and governance factors within their business which can sometimes be harder to consider. We have also incorporated training around the questions to help advisers focus on specific topics such as clean energy and carbon offsets, as well as their policies on diversity and inclusion.

“Our early pilot has already indicated that advisers were able to identify ways in which they could improve their business, which not only can make a business more valuable, but can also help to attract and retain talent. The Scorecard also identifies specific areas where advisers are asking for further help, and the next stage for us at Schroders will be to deliver that.”

The Scorecard is available to any adviser business who wants to take part, and for every return we receive, a donation will also be made to the Felix Project, one of Schroders’ charity partners who collect surplus food from restaurants and supermarkets to help feed vulnerable people.

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