ESGESG is at the heart of our approach to managing risks, identifying opportunities and delivering long term value.
Investing exclusively in renewables, with a strong ESG approach
As the UK and Europe accelerate their energy transition and US policy evolves, Schroders Greencoat is well positioned to meet the growing demand for renewables investment and the mounting importance of ESG globally.
By investing exclusively in renewables, our core investment activity has a direct positive impact on the environment through reducing fossil fuel electricity generation and associated emissions. We also recognise that we have further responsibilities beyond the carbon savings we achieve.
Across our portfolios, we are committed to responsible investment practices and robust governance.
We continually strive to implement improvements in how we invest and operate assets to create long term value for all our stakeholders, including society at large. As a leading investor in the renewable energy market, we also have a responsibility to promote sustainable practices across the industry.
Annual ESG Reports
Our approach to sustainable investment and ESG Policy
Schroders Greencoat is committed to implementing responsible investment practices both before investment and throughout the lifetime of the asset.
We seek to ensure that all people working at our sites are safe and in fair employment. We strive to build lasting relationships with local communities and look after the animal and plant life that coexists with the renewable assets we manage. We play an active role in promoting effective operation, good governance and ethical business conduct throughout the renewable energy industry.
Our approach is guided by our ESG Policy and is reviewed regularly and adapted where necessary.
The principal considerations are listed below.
- Identify low carbon opportunities
- Screen against investment restrictions
- Rigorously assess ESG Risks and implement mitigation plans
- Follow a tailored Investment Committee process
- Monitor and report on Health and Safety and Environmental matters
- Manage impacts and habitat improvements
- Engage with and support the local community
- Perform due diligence on third parties
- Establish minimum governance standards
- Manage Joint Venture structures
- Comply with laws and regulations
- Ensure business integrity
- Share best practice
- Monitor and report on ESG issues and KPls in a structured way
United Nations Principles for Responsible Investment (PRI)
Schroders Greencoat is a signatory to the United Nations’ PRI. These principles provide a voluntary framework to help institutional investors incorporate ESG factors into investment analysis, decision-making and ownership practices.
Net Zero Asset Managers Initiative (NZAMI)
Schroders Greencoat is a signatory of the Net Zero Asset Managers Initiative, an international group of asset managers committed to decarbonising their portfolios to net zero emissions by 2050 or sooner, in line with the Paris Agreement. We believe that engaging with the wider industry to support investing aligned with net zero emissions is a crucial step in the transition towards a green economy and are proud to be one of the signatories committed to global efforts to limit warming to 1.5 degrees Celsius.
We are proud to be one of over 270 NZAMI signatories representing over $61 trillion in assets under management, having signed in 2021. (Figures are as of 31 May 2022, as per latest data on the Net Zero Asset Managers initiative website)
Task Force on Climate-related Financial Disclosures (TCFD)
The TCFD was created to improve and increase reporting of climate related financial information and its recommendations aim to establish consistent disclosures on climate related risks.
Schroders Greencoat supports the goals of the TCFD and has adopted its recommendations across our businesses. The TCFD disclosures for our two listed funds are available in their respective annual reports here:
Global Real Estate Sustainability Benchmark (GRESB)
GRESB is a mission driven and investor led organization that provides actionable and transparent ESG data to financial markets. GRESB participation provides us with actionable information to contribute to our monitoring and managing of sustainability risks.
Greencoat Solar II LP, Schroders Greencoat’s pooled private market fund investing in UK solar, has adopted GRESB. We have been actively engaged with GRESB to help the organization refine its framework to best fit aspects of renewable energy infrastructure.
In 2022, Greencoat Solar II LP scored 92% in the GRESB asset level assessment, placing them first in Europe for photovoltaic power generation.
United Nations Sustainable Development Goals (SDGs)
Schroders Greencoat acknowledges the importance of the United Nations Sustainable Development Goals in addressing the global challenges facing the international community and is supportive of the 2030 targets.
As a leading manager of renewable energy assets, we contribute to the SDGs in two core ways: through the creation of renewable energy (SDG 7) and climate action (SDG 13).
SDG 7: Ensure access to affordable, reliable, sustainable, and modern energy for all
The assets we manage currently represent over 4,000MW of total installed capacity. Together, the funds generated 7,146GWh of renewable electricity and heat in 2021, enough to power nearly 2 million homes for a year.
SDG 13: Take urgent action to combat climate change and its impacts
The assets we manage contribute towards a zero carbon future and can offset 3.2 million tonnes of CO2 emissions a year. We are assessing and reporting the climate-related risks and opportunities associated with these assets, as well as taking steps to reduce the carbon footprint of the portfolio across the funds we manage.
Beyond these, our ESG activities contribute to a broad range of SDGs, as detailed in our annual ESG reports. The 2021 ESG report is available here.
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