Schroders has announced the launch of two new sustainable global equity funds as part of their thematic range.
The Schroder ISF Circular Economy fund will be managed by Jack Dempsey and will invest in companies which contribute to the transition to a circular economy by reducing non-renewable resource consumption, reducing waste and pollution and increasing levels of recycling.
The Schroder ISF Sustainable Infrastructure will be managed by Ashley Thomas and will invest in companies which help to advance the development of global sustainable infrastructure assets, such as energy utilities, renewable energy, water and waste utilities, rail and communications infrastructure.
Both funds are recognised under Article 9 of the Sustainable Finance Disclosure Regulation and form part of Schroders’ Global Transformation Range of thematic funds.
Jack Dempsey, Fund Manager of the SISF Circular Economy, Schroders, says, “The global economy currently consumes close to two planet Earths’ worth of resources a year. The imbalance between demand for resources and their supply is unsustainable and change is urgently needed. Shifting to a circular economy is essential to tackle this key challenge. The prize for companies that can close the resource gap is massive, estimated at c. $25 trillion by 2050. Entire industries have the potential to be transformed. For example, clothing resales are expected to be bigger than fast fashion by 2029, and, as plastics come under increased scrutiny from consumers and regulators, more sustainable materials can gain market share”.
“Through SISF Circular Economy, investors will be able to tap into a growing market for sustainable products and services, while also contributing to a more resilient and resource-efficient economy. This is vital since we see no path to net zero without a circular economy. Critical investment gaps also exist when it comes to new water resources and waste water treatment, rail to support the decarbonisation of transport, and the telecommunication sector.
“SISF Sustainable Infrastructure is focused on supporting the UN SDGs including environmental improvements while allowing investors to benefit from the strong long-term growth potential inherent in this exciting investment theme.”