Schroders launches climate leaders fund

Schroders has announced the launch of the Schroder ISF Global Climate Leaders fund.

Schroders say the fund will aim to provide investors with exposure to companies benefitting from a competitive advantage due to their ‘climate change leadership’.

Climate leaders are companies that have targets to decarbonise, such as reducing their carbon emissions to carbon removal, consistent with achieving a 1.5 degree scenario or better under the Paris Agreement for climate change. The fund will look to allocate to 50-80 stocks spanning all geographies and sectors. It is classified under the EU Sustainable Finance Disclosure Regulation as Article 8. It will be managed by portfolio managers Simon Webber and Isabella Hervey-Bathurst.

Simon Webber, Portfolio Manager of Schroder ISF Global Climate Leaders, Schroders, said:

“Achieving the goals of the Paris agreement requires a massive step change in the pace of emissions reduction globally. This fund will invest in those companies at the very forefront of making the necessary emission reductions. Institutions increasingly want to ensure that their assets are invested in strategies consistent with delivering rapid decarbonisation. This fund will help them achieve this, while targeting strong investment performance.”

Isabella Hervey-Bathurst, Portfolio Manager of Schroder ISF Global Climate Leaders, Schroders, commented:

“Historically companies have not been rewarded for investing to help decarbonise more rapidly than their peers. As society and policymakers pivot towards penalising inactivity and rewarding the companies that support tackling climate change, these investments will change from being a cost to a competitive advantage. We believe climate leaders will create more value while exhibiting lower risk.”