Stockholm (HedgeNordic) – Schroders, the independent, global asset management firm with €425.4 billion in AUM, has opted to connect some of its most in-demand funds to Hållbarhetsprofilen (the “Sustainability Profile”) in order to facilitate smart and sustainable fund selections for investors.
Schroders, which has operated in Scandinavia since 1989, has a long track record of working on sustainability issues, and has been issued the highest rating by the UNPRI (the United Nations Principles for Responsible Investment).
Schroders has now added 11 of its funds to Hållbarhetsprofilen – an initiative that enhances transparency and enables investors to see how these funds deal with sustainability issues.
In so doing, it cites an Oxford University study finding that companies actively working to implement ESG (Environmental, Social and corporate Governance), including issues related to sustainability, ethics and the environment hold distinct advantages.
The study’s findings paint a consistent picture: the companies that pursue ESG policies the most assiduously also tend to exhibit the best operating results.
“We work proactively with ESG to ensure responsible investments in the companies we are involved with worldwide. We regard the decision to merge Schroders and some of our most in-demand funds with Hållbarhetsprofilen as a natural development in this process,” says Ketil Petersen, Schroders’ Country Head of the Nordic Region.
Hållbarhetsprofilen is developed by Swesif, Sweden’s independent, non-profit organizational forum for sustainable investment. The forum aims to increase knowledge and interest in sustainable and responsible investment (SRI) both within and outside the industry. Hållbarhetsprofilen compiles facts pertaining to how affiliated fund PMs work according to sustainability criteria in their investments. This includes issues regarding the environment, social responsibility, corporate governance and business ethics.
“We followed the Swesif-led initiative over a period of time and decided to join it,” says Petersen. “This is because we believe Hållbarhetsprofilen offers added value and a better platform for decision-making for our customers, particularly with regards to enhanced transparency and increased awareness of the various funds’ and companies’ efforts on sustainability.”
Petersen affirms that “simultaneously, the initiative underscores an important aspect of the investment process. We believe that companies with a sustainable business model also show better financial results. Studies also show that good sustainability principles can lead to lower capital costs, which benefits long-term owners.”
Schroders added the following funds to Hållbarhetsprofilen: Asian Smaller Countries, China Opportunities, Emerging Europe, Emerging Market Bond, European Special Situations, Frontier Markets Equity, Global Climate Change Equity, Japanese Opportunities, Japanese Smaller Countries, Middle East and U.S. Small and Mid-Cap Equity.