The release is the culmination of investments and integration, following the acquisition of the pioneer in impact investing, BlueOrchard, by Schroders in 2019.
Schroders has recently published its first Impact Report, highlighting the Group’s commitment to making investments that have a social impact and its dedication to creating a positive footprint for society and the environment on behalf of its clients.
As stated in a related announcement, this release represents the peak of investments and integration following the acquisition of the pioneering impact investment firm, BlueOrchard, by Schroders in 2019. This acquisition led to the development of Schroders’ proprietary Impact Framework. The Impact Framework has been verified by BlueMark, an independent impact assessment services provider. Schroders is now the only diversified asset manager included in BlueMark’s Practice Leaderboard.
Schroders’ Impact Report provides a comprehensive summary of the tangible footprint of the company’s impact investments. At the same time, it highlights the Group’s commitment to measuring and disclosing the results of impact portfolios to its clients.
The Report offers a detailed analysis of the contribution of Schroders’ portfolios to the UN Sustainable Development Goals (SDGs), as well as an overview of activities being carried out in response to commitments made to the listed companies included in the impact funds.
Furthermore, it provides information regarding the climate performance of Schroders’ portfolios, incorporating greenhouse gas emissions and climate risks they face, as well as potential climate transition investment opportunities that arise.
The Chief Executive Officer of the Schroders Group, Peter Harrison, stated:
“The publication of our first Impact Report marks an important step in ensuring that our clients can clearly see the tangible positive outcomes of their investments. We are proud to have developed a pioneering ability to record impact in the industry, covering a variety of industries, geographical areas, and specialties.
We have benefited from close collaboration with our colleagues at BlueOrchard, who played a central role in establishing Schroders’ Impact Framework, as well as in the broader development of the variety of impact investments.”
To date, the range of Schroders’ impact investments has invested in companies, mutual funds, and assets that support 504,646 people, including 91,569 individuals in healthcare services, 36,068 in digital services, and 67,763 in financial services. This is the positive impact of Schroders, which is directly linked to the size of its investments, as of December 31, 2023 [1].
Additionally, the range of Schroders’ impact investments includes 20 mutual funds [2] that focus on a wide range of asset classes and geographical areas, including public and private equity, infrastructure funds, real estate, and multi-private asset solutions. It represents approximately $5.25 billion in assets under management [3] from Schroders, Schroders Capital, and BlueOrchard. Last month, Schroders announced the launch of the Schroder ISF [4] European Equity Impact fund, further expanding the range.
The funds are designed to address global challenges surrounding a variety of impact-related issues, including Inclusion, Health and Wellbeing, Environmental concerns, Responsible Consumption and Production, and Sustainable Infrastructure, aiming to align with the UN Sustainable Development Goals.
All mutual funds in Schroders’ impact investment category follow the Impact Framework, which was created in close collaboration with the impact investment pioneer BlueOrchard, leveraging its 20-plus years of experience in this field.
This pioneering framework [5] allows the group to report on impact both at an aggregate level and at the level of individual asset classes or funds. This further demonstrates the group’s commitment to integrating impact throughout the investment process of impact investments.
Maria Teresa Zappia, Global Head of Impact at Schroders and Deputy CEO and Chief Impact & Blended Finance Officer at BlueOrchard, stated:
“This report is the result of the close and successful integration of BlueOrchard’s decade-long experience in impact investing, along with the expertise of our colleagues at Schroders, Schroders Capital, and Cazenove Capital.
The Impact Framework enables us to create a positive footprint at an aggregate level across sectors, asset categories, and client categories, which differentiates us in the industry. We are excited to continue meeting the growing demand for products and solutions with a positive social impact based on the needs of our clients.”