Schroders Group Nature and Biodiversity Position Statement

Schroders Group Nature and

Biodiversity Position Statement

July 2023

Contents

Introduction .................................................................................................................................... 1

Scope ................................................................................................................................................. 1

Our commitment ............................................................................................................................ 2

How we act ...................................................................................................................................... 3

How we govern our actions .......................................................................................................... 6

The awareness and training we provide.................................................................................... 6

Our advocacy ................................................................................................................................... 7

Our plan on deforestation ............................................................................................................ 8

Our reporting and transparency ............................................................................................... 11

Schroders Group Nature and Biodiversity Position Statement

Introduction

As an active investment manager, we make decisions every day on behalf of savers and investors around the

world. We make these choices carefully and deliberately – because they affect the financial future of our clients

and they impact the wider world. We are responsible for £737.5 billion

of assets for our clients who trust us to

deliver sustainable returns.

Man-made pressures are undermining the biodiversity that supports life on land and below water. Ecosystem

services delivered by nature, such as water purification, crop pollination, flood protection and carbon

sequestration are vital to human wellbeing and effective, functioning societies. Protecting terrestrial and

marine ecosystems is critical in our efforts to mitigate and adapt to climate change and fundamental to

achieving food security, poverty reduction and more inclusive and equitable development.

Globally, the value of ecosystem services has been estimated at as much as USD 125–140 trillion annually,

more than 1.5x global GDP.

The costs of inaction on biodiversity loss are huge. With more than half of our

global GDP dependent on the natural world

, the reality is stark: nature risk is fast becoming an integral

factor to investment risk. That’s why action on nature and biodiversity goes to the heart of our fiduciary duty to

our clients.

Global collective action to halt and subsequently reverse biodiversity loss needs to be scaled up dramatically

and urgently. As a global investment manager we have a responsibility to mitigate risks in the portfolios we

manage for our clients. This also provides an opportunity to invest in solutions to restore and protect natural

capital. We use our influence to encourage the companies in which we invest, to mitigate the damage to the

natural environment, in order to promote and preserve their financial wellbeing.

That’s why we are setting out our ambition on nature: we want to harness the power of investment to

accelerate a nature positive future.

Scope

This policy statement sets out Schroders’ (‘Group’ ‘our’ or ‘we’) position on nature and biodiversity. It covers the

investments we manage and our own operations with regards to nature and biodiversity, in the context of our

Group commitments to environmental management and climate change mitigation and adaptation.

Nature refers to all assets in the natural world, including everything from soil, forests, air, water, geology

and all living organisms.

Biodiversity is an important element of nature and refers to the variety of living things in a given area.

Ecosystem services: Biodiversity is vital for the healthy functioning of ecosystems which in turn provide a

multitude of goods and services that underpin our economies. These services, known as ecosystem services,

include everything from direct goods such as food, energy, and medicinal resources, to regulating services

provided by nature, such as water filtration, crop pollination, carbon sequestration, climate regulation, and

flood protection, to name a few. These ecosystem services almost always go unpriced, resulting in their

excess use. This has resulted in ecosystem decline and degradation as well as rising ecological scarcity.

Natural capital refers to the stock of renewable and non-renewable natural assets (for example,

ecosystems), that yield a flow of benefits to people (for example, ecosystem services). We’ve written more

about this here.

Assets Under Management as at 31 December 2022.

https://www.oecd.org/environment/resources/biodiversity/Executive-Summary-and-Synthesis-Biodiversity-Finance-and-the-

Economic-and-Business-Case-for-Action.pdf.

https://www.weforum.org/agenda/2018/10/this-is-why-putting-a-price-on-the-value-of-nature-could-help-the-

environment/#:~:text=How%20much%20is%20nature%20worth,this%20report%20%7C%20World%20Economic%20Forum.

Schroders Group Nature and Biodiversity Position Statement

Our commitment

As signatories to the Finance for Biodiversity Pledge we have committed to:

– Collaborate and knowledge share across the industry on nature and biodiversity

– Engage with companies to encourage best practice in understanding and reducing their impacts

on nature

– Assess the impact of our financing activities on nature using best available data

– Set targets to reduce our impacts on nature, including our commitments on decarbonisation and

deforestation

– Report publicly in line with emerging disclosure guidance to ensure transparency around all of our

commitments relating to nature

We will use our influence to limit the pace of biodiversity loss with urgency this decade. We will also seek out

innovative ways to accelerate capital deployment into restoring and protecting nature directly in order to

maximise risk-adjusted returns for our clients. We have committed to:

– Eliminate exposure to commodity-driven deforestation in the companies held in the investment

portfolios we manage by 2025. This is codified in the Financial Sector Commitment on Eliminating

Commodity-Driven Deforestation, through which over 30 institutions representing close to USD 9 trillion

in assets committed to eliminate commodity-driven deforestation in a statement released during COP26.

– Transition our managed assets to net zero by 2050 or sooner. Climate change is one of the key drivers

of biodiversity loss. We were founding members of the Net Zero Asset Managers initiative, committing to

transition the portfolios we manage to net zero by 2050 or sooner. We followed this with the publication

of our Climate Transition Action Plan in 2021 and publish an annual Climate Report, which sets out how

we are going to achieve our net zero ambitions. In February 2022, our science-based targets were

validated by the Science-Based Targets initiative, making us among the first 20 financial institutions to

reach that milestone.

– Develop investment strategies to support greater investment in natural capital protection and

regeneration. This is reflected in our membership of the Natural Capital Investment Alliance, which

comprises 15 investment firms working to mobilise USD 10 billion investment in natural capital assets

in 2022.

– Manage and reduce the impact on biodiversity through our own business operations. Our direct

impact is through our resource consumption and waste management. We will continue to reduce our

environmental impact according to the mitigation hierarchy, and where possible, enhance the

environments in which we operate.

https://racetozero.unfccc.int/wp-content/uploads/2021/11/DFF-Commitment-Letter-.pdf.

https://www.sustainable-markets.org/ncia/.

Schroders Group Nature and Biodiversity Position Statement

How we act

Our approach to tackling impacts, managing risks in a transitioning world and identifying opportunities in

nature and biodiversity is based on four main pillars:

1. Insights: developing our understanding and analysis to identify the exposure to nature risk that

companies and assets have

– We have developed an analytical framework specifically to assess the exposure of listed companies to

biodiversity and natural capital risks and opportunities, based on the most robust data currently available,

recognising that significant data gaps still exist. A summary of this analysis can be found on our website.

– In addition, biodiversity and natural capital are captured within the frameworks of our proprietary ESG

models, SustainEx and ThemeEx. These models measure the exposure to, and management of,

biodiversity-related risks in a distinctive manner, alongside a much broader set of ESG topics using

consistent methodologies. By using these tools, our investors can analyse the issue of biodiversity to aid

their understanding and interpretation of the investment implications.

– In 2021, we invested in a leading natural capital analytical firm NatCap Research along with Oxford

Sciences Innovation and other investors.

This partnership has strengthened our analysis of nature-

related impacts and biodiversity. NatCap Research has since developed into a nature intelligence

company, providing corporates and financial institutions with insights and information on the nature

related impacts, dependencies and risks/opportunities of their portfolios and supply chains. NatCap

Research integrates geospatial modelling and asset level data to measure, report and act on nature.

We have developed analysis to support investment teams in identifying companies exposed to commodity-

driven deforestation risks, either directly or through their value chains, and where efforts to mitigate those

risks appear weak. A summary of this can be found on our website.

We have published several reports and

articles describing our views on the importance of biodiversity preservation, for example examining the drivers

of global commodity-driven deforestation.

2. Influence: engaging with and influencing companies to reduce their exposure to nature risk and

their impacts on nature

Biodiversity is a key pillar of our Engagement Blueprint, which lays out our expectations of the companies in

which we invest. We recognise that our greatest ability to affect change comes through the investments we

manage for our clients. As active investors, we will support companies whose business models rely directly or

indirectly on biodiversity loss to transition toward sustainable business models. We prioritise four key

engagement sub-themes:

a. Nature-related risks and management: The degradation of nature, including the loss of biodiversity and

depletion of renewable stocks, poses a risk for businesses. We encourage companies to develop strong

governance on this issue and adopt emerging good practices on nature-related financial disclosures and

target setting.

b. Circular economy, pollution and waste: Creating a circular economy that limits pollution and waste and

promotes re-use and recycling is critical in reducing the intensity of natural resource consumption and

alleviating environmental pressures. We encourage companies to minimise waste, pollution and to

promote circularity.

c. Sustainable food and water: The world's food system must transform to meet population growth and

address malnutrition and other health risks. The food and water system is both at risk from climate

change and is a significant contributor to greenhouse gas (GHG) emissions and other environmental

https://prod.schroders.com/en/sysglobalassets/digital/insights/2021/11-november/how-can-investors-assess-impacts-on-

nature/603269_sc_in-focus-natural-capital-v04.pdf.

https://www.schroders.com/en/global/individual/media-centre/natural-capital-research-accelerates-global-growth-strategy-with-

investment-from-schroders-and-osi/.

https://prod.schroders.com/en/sysglobalassets/digital/insights/2021/11-november/how-can-investors-assess-impacts-on-

nature/603269_sc_in-focus-natural-capital-v04.pdf.

https://www.schroders.com/en/insights/economics/qa-why-tackle-harmful-deforestation--and-how/.

Schroders Group Nature and Biodiversity Position Statement

pressures including land use change, pollution, pesticides and water use. We engage to promote a food

and water system that is more environmentally sustainable, healthy and better able to meet the needs of

a growing population.

d. Deforestation: Forests are an important carbon sink. They also play a critical role in the planet's water

cycle and in sustaining biodiversity. Deforestation is a major contributor to GHG emissions and

biodiversity loss. We expect companies to eliminate exposure to commodity-driven deforestation and to

promote the sustainable management of forestry assets.

See ‘Our plan on deforestation’ on pages

10–12.

3. Innovation: offering investment solutions in public and private markets that channel capital to

protect and restore nature and deliver long-term returns

We recognise that a growing number of institutional and retail investors are looking for innovative nature-

based investments. As a result, we have focused on building out our capabilities to help our clients invest in

real assets and nature-based solutions that seek to generate strong investment returns and accelerate positive

change to protect and restore nature. To strengthen our natural capital capabilities, we have announced

several partnerships and investments:

– In July 2022 we announced a partnership with Conservation International to establish Akaria Natural

Capital, a Singapore-based asset manager dedicated to natural capital investment in South East Asia. The

ambition of the partnership is to scale-up the deployment of capital towards nature-based solutions that

are designed to deliver significant positive climate, biodiversity and social impacts while generating long

term value for investors.

– Together with BlueOrchard, a subsidiary in the Schroders Group, we aim to contribute to positive

environmental and social impact through forestry. These may include forest protection and conservation

projects, reforestation and afforestation projects, as well as sustainable forestry management projects.

We continue to explore solutions that bring together climate, biodiversity and community impact for

clients wishing for more diversified exposure across developed and emerging markets. Our Plan for

Nature contains more details on some of the innovative solutions we are offering to clients to protect and

restore nature and deliver long-term returns.

4. Inspire: leading by example in our own business operations

Our direct impact on nature and biodiversity is through our resource consumption and waste management in

the operation of our offices around the world. We are committed to operating more sustainably as a business.

Our strategy is primarily focused on reducing our environmental impact by cutting our GHG emissions across

our operational footprint and engaging with our supply chain to do the same. We are also looking to enhance

the environments in which we operate. We are also cognisant of the mitigation hierarchy

to follow avoidance,

minimisation, restoration and offsets in order to reduce impacts and control any negative effects on the

environment.

a. Energy management: Our operational climate change strategy focuses on reducing our environmental

impact by decreasing energy demand, increasing energy efficiency and switching to low-carbon sources

of energy. We are committed to using 100% renewable electricity for all our owned or leased offices

globally. Renewable energy can help to reduce the vulnerability of ecosystems and species to the impacts

of climate change, through reduced pollution and habitat destruction. Site-level action plans are being

developed to look at the opportunities to install onsite renewables, switch to green electricity tariffs or buy

renewable electricity certificates.

b. Waste and water management: We are taking steps to ensure we manage our waste effectively through

waste avoidance, reduction and improving our recycling rates. Our commitment is highlighted through

our ISO 14001 certification, for which we are audited annually to check that all waste operations (including

waste electrical and electronic equipment (WEEE) and other hazardous wastes) are in line with best

Currently, the expectations we set for deforestation apply to our publicly listed assets. In the future we will look to expand this to

our private assets business, where relevant and appropriate.

https://nationalzoo.si.edu/ccs/mitigation-

hierarchy#:~:text=The%20mitigation%20hierarchy%20is%20a,no%20net%20loss%20of%20biodiversity

Schroders Group Nature and Biodiversity Position Statement

practice. Collectively, these buildings are responsible for 76% of our building-related Scope 1 and 2

emissions and cover the primary office location of 74% of our employees.

In 2022, we produced 494 tonnes of waste globally, of which 65% was recycled. In 2022 we managed to

verify data that covered 69% of our operations by FTE. In our London headquarters, our total waste

produced decreased by 38% from 2019 levels and increased by 40% compared to 2021. Despite average

monthly occupancy nearing 2019 levels at our London headquarters in 2022, waste produced remained

low, due to the impacts of waste reduction initiatives.

In 2022, we increased our water use monitoring across our global operations and verified consumption

data for 83% of our office operations. In 2022, our global water use was 9 m

per employee. This is in line

with the latest Real Estate Environmental Benchmark (REEB) typical practice water use benchmark.

c. Responsible sourcing of materials, food and drink: In our London headquarters and Broadlands

business campus our office paper is Forest Stewardship Council and Woodland Trust Carbon Capture

certified. Additionally, we have limited our supply of single-use products such as paper cups and are

looking to reduce our plastic use globally. We are also making efforts to improve the sustainability of our

food and drink provision. We also review our business-critical suppliers annually for attestation with our

Supplier Code of Conduct, which encourages suppliers to have policies for effective environmental

management.

d. Carbon offsetting: Since 2019, we have operated our business on a climate neutral basis and will

continue to do so. Although our primary focus is on reducing emissions, we also believe there is a role for

carbon offsetting to accelerate the impact of those reduction efforts, as we go through our net zero

transition process. Since 2021, this has included all Scope 1, 2 and 3 category emissions (except supplier

and financed emissions where we are engaging with suppliers and the companies in which we invest to

reduce emissions).

Our current global offsetting project portfolio includes six projects, five of which (69% by volume) are

nature-based solutions projects focused on forest protection and reforestation. The projects we support

are designed to protect and enhance biodiversity by avoiding and reducing emissions through nature

conservation or removing emissions through nature restoration.

As the voluntary carbon market continues to grow and develop, we will seek to adopt the Oxford

Principles for Net Zero Aligned Carbon Offsetting to help support the ongoing integrity of our approach.

As well as adhering to current best practice in sustainable development integrity and transparency, over

time we will increase our proportion of carbon removal projects over emissions reduction projects and

support the longer-term development of the net zero offset market. 55% of our current project portfolio

are removals projects, up from 10% in 2021.

All the carbon finance projects we support are independently validated and verified in line with recognised

global standards. Three of the five nature-based solutions projects are also recognised under Verra’s

Climate, Community and Biodiversity (CCB) standard.

https://www.betterbuildingspartnership.co.uk/sites/default/files/media/attachment/2020%20Real%20Estate%20Environmental%2

0Benchmarks_2.pdf.

Schroders Group Nature and Biodiversity Position Statement

How we govern our actions

The Board of Schroders plc has collective responsibility for the management, direction and performance of the

Group, and is accountable for our business strategy. We embed climate and nature-related risks and

opportunities into our strategy. The Board is therefore ultimately responsible for the oversight of climate and

nature-related risks and opportunities that could impact our business.

The Group has a well-defined governance framework based on delegated authority. The Board has reserved

certain matters to itself and has also delegated specific responsibilities to Board Committees, notably the

Nominations Committee, the Audit and Risk Committee and the Remuneration Committee and also to the

Group Chief Executive. The Group Chief Executive is responsible for proposing the strategy for the Group and

for its execution. Through this framework, the Board receives regular briefings on sustainability matters,

including climate and nature-related issues.

Our Group Sustainability and Impact (GSI) Committee advises and assists the Group Chief Executive, who

chairs the Committee, in discharging his responsibilities regarding sustainability and impact. Our climate and

nature-related targets are monitored by the GSI Committee, with progress reported to the Board.

The awareness and training we provide

We run training sessions on nature, biodiversity and deforestation with our investment desks so they are

better equipped to hold the companies in which we invest to account on these issues. Our ’sustainability

curriculum’ on our global learning management platform, includes modules that cover nature and biodiversity.

We also engage with clients through 1-1 meetings, workshops and thought leadership so that we can raise

awareness in the wider industry on emerging trends and best practice.

Schroders Group Nature and Biodiversity Position Statement

Our advocacy

We seek to collaborate with policymakers and international standard setters in their efforts to address

biodiversity loss. We support and actively engage with a range of initiatives focusing on advancing and

strengthening the investment industry’s biodiversity understanding, commitment and action.

We are members or signatories of several key industry initiatives and commitments, including:

– The Finance for Biodiversity Pledge, which calls on global leaders to agree on effective measures to

reverse nature loss in this decade to ensure ecosystem resilience. This also underlines our commitment to

engage with companies, assess the impact of our investments, set targets and report publicly.

– The Financial Sector Commitment on Eliminating Commodity-Driven Deforestation, through which

over 30 institutions representing close to USD 9 trillion in assets committed to eliminating exposure to

commodity-driven deforestation by 2025 in a statement released during COP26.

– The Natural Capital Investment Alliance (NCIA), which aims to accelerate the development of Natural

Capital as a mainstream investment theme. NCIA was created by His Royal Highness, King Charles III (then

Prince of Wales), as part of his Sustainable Markets Initiative (SMI) launched at Davos in 2020. Its members

have plans to launch, or have launched, investment products aligned to Natural Capital themes to

mobilise USD 10 billion investment in natural capital assets in 2022.

– The Farm Animal Investment Risk & Return (FAIRR) Initiative, which seeks to raise awareness of the

ESG risks surrounding intensive livestock production. Through the initiative we support collaborative

engagement on sustainable proteins to encourage diversification, recognising that alternative proteins

offer an important part of the solution to the challenge of feeding a growing population sustainably.

https://www.financeforbiodiversity.org/.

https://www.sustainable-markets.org/ncia/.

Schroders Group Nature and Biodiversity Position Statement

Our plan on deforestation

Our commitment to eliminate forest-risk agricultural commodity-driven deforestation in the companies held in

the investment portfolios by 2025 covers all new and existing financing activities, of all company and deal sizes.

It also seeks to address human rights abuses associated with commodity-driven deforestation.

Commodities covered include palm oil, soy, cattle products, and timber. The commitment covers both illegal

and legal commodity-driven deforestation given the prevalence of inadequate legal protection for forests in

numerous countries and the challenges associated with distinguishing between legal and illegal deforestation.

Our focus is on high-risk geographies and unsustainable practices.

We recognise that deforestation, conversion and associated human rights abuses pose potentially significant

risks to the value of the investments we manage on behalf of our clients, as companies face increased threat of

value chain disruption, physical risks and regulatory and consumer scrutiny. As responsible investors and

guardians of our clients’ assets, we seek to actively influence behaviour so that the companies in which we

invest are managed in a sustainable way.

We also recognise that with disclosures and analytical frameworks in this area still relatively immature and

nascent, companies exposed to these activities cannot be identified perfectly and that judgement and insight

will be necessary.

Delivering on our commitment

Our strategy to deliver on this commitment consists of four key elements:

1. How we identify, prioritise and monitor companies

We assess our exposure to commodity-driven deforestation risk across our portfolios using a proprietary

deforestation scorecard that assesses commodity exposure, geographic exposure and human rights risks as

well as company management of these risks. This scorecard enables us to identify companies that are failing to

meet our standards on commodity-driven deforestation to the best of our ability and to monitor progress over

time. We have published details of this scorecard here. Through this scorecard we have identified companies

with material revenue exposure to forest risk commodities; who we believe have significant involvement in the

production or processing of timber, palm oil, soy or beef. We are prioritising these companies for engagement

and monitoring progress against our expectations. We have also identified companies with high supply chain

exposure to deforestation. Investment desks are able to prioritise these for engagement according to the

materiality in their investment portfolios.

2. Our engagement and escalation strategy

Our clear engagement escalation framework sets out the steps we will take where companies fall short of our

expectations to address deforestation risk. This can result in divestment in some cases. Our methods of

escalation are set out in full in our Engagement Blueprint and include the following actions:

Schroders Group Nature and Biodiversity Position Statement

Methods of escalation

Our expectations of the companies in which we invest

We recognise that expectations will be unique to a specific company depending on its current practices,

determination of its most material issues and broader considerations such as company size, geography and

sector. We focus on achieving positive outcomes for a company’s most material issues.

Below we outline some examples of best practice that we encourage companies to follow where material and

appropriate for their business models. This applies across palm oil, soy, cattle products, and timber. We have

made these bold where these are key actions that we expect most companies to be able to

demonstrate, recognising that there may be regional, sector and company-specific circumstances.

Dimension

Desired short- and mid-term actions

Strategy and

ambition

– Set timebound commitments to end commodity-driven deforestation in their operations

and supply chains and to disclose progress towards these targets annually

– Target no commodity-driven deforestation by 2025 at the latest, and to report yearly on their

progress towards achieving this

Governance

and oversight

– Comply, as a minimum, with all local, national and international laws and regulations

with regards to forest-risk commodities in their operations and supply chain

– Demonstrate board-level and management accountability for forest-related risks

– Incorporate progress towards their deforestation targets within executive compensation in

the most exposed sectors

Risk

management

and

traceability

– Conduct commodity specific commodity-driven deforestation risk-assessments for their

operations and/or supply chains

– Develop adequate traceability systems – including mechanisms to monitor compliance with

their commitments – as well as targets to improve traceability where necessary

– Disclose the locations of the production sites, processing facilities and/or suppliers

– Demonstrate compliance with a credible certification scheme and set targets to improve

certification levels where relevant

– Conduct High Conservation Value and High Carbon Stock assessments for new developments

and acquisitions where relevant

Metrics and

targets

– Disclose the metrics used to assess commodity-driven deforestation risks and opportunities

and progress to mitigating them across the entire supply chain

– Disclose quantifiable progress towards their deforestation commitments, across the entire

supply chain

Schroders Group Nature and Biodiversity Position Statement

– Disclose in line with emerging best practice, including the Taskforce for Nature-related

Financial Disclosures (TNFD) draft guidelines

Human rights

and social

impacts

– Establish and implement a human rights policy in line with the UN Guiding Principles,

IFC, ILO and other international frameworks which commits to respect human rights,

including labour rights, indigenous rights and rights to equality and inclusion. The policy

should cover direct operations and supply chain

– Establish board responsibility for oversight of human rights policies and processes, and

for this responsibility to be engrained in relevant governance documents and charters

– Introduce robust human rights due diligence processes in place in line with the human rights

policy, including:

– Identifying and assessing actual or potential adverse human rights impacts, including

through meaningful engagement with rights holders and other relevant stakeholders, such

as NGOs

– Integrating findings in processes and taking appropriate action

– Tracking effectiveness of the measures, including through broad access to thorough and

transparent grievance mechanisms

– Communicating how impacts are being addressed

– Apply the principle of Free Prior and Informed Consent (FPIC) before a project begins and on an

ongoing basis, and wherever possible ensure communities and local businesses are able to

participate in the benefits of company activities, including receiving fair compensation. Where

FPIC is not obtained, activities should be halted

– Provide for, or cooperate in, remediation where the company identifies that they have caused

or contributed to adverse impacts, including committing to address grievances and disputes

constructively and proactively with local communities and indigenous groups

We report our engagement activities, including on deforestation, in our Annual Sustainable Investment

Reports. We also plan to provide regular updates and disclosures on our progress towards our 2025

commitment, to be published on our website.

Schroders Group Nature and Biodiversity Position Statement

Our reporting and transparency

We are strong advocates for transparency and accountability across the companies in which we invest and

seek to hold ourselves to the same standards. We integrate information on biodiversity and nature-based

solutions into our climate reporting, including our Climate Transition Action Plan, Climate Report 2022 and

annual CDP questionnaire. Our 2022 CDP submission (for year end 2021) includes sections on biodiversity,

forests and water. We achieved a leadership level score of A for our most recent (2022) CDP response (for year

end 2021). This top ranking was achieved by only 2% of the nearly 15,000 companies scored by CDP.

We have been actively involved in supporting the TNFD, which is developing a risk management and disclosure

framework for organisations to report and act on nature-related risks, with the ultimate aim of supporting a

shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes.

have provided feedback on the draft disclosure guidance. We participate in ongoing collaboration with

industry peers on natural capital and biodiversity issues. For example, we were actively involved with the TNFD

and Global Canopy Pilot on Palm Oil in Singapore through participation in workshops, reviewing proposals and

sharing lessons learnt.

In 2022 we submitted to Global Canopy’s 2022 Forest 500 assessment and increased our score by 46% from

2021, placing us 1

in the 150 global financial institutions tracked.

We will continue to evolve our reporting on this issue in line with emerging guidance.

Please see below for further detail on our climate transition action plan, engagement blueprint for biodiversity

as well as published research on this topic:

External reports and documents

– Climate Report 2022

– Climate Transition Action Plan 2021

– Group Climate Change Position Statement

– Environmental, Social and Governance Policy for Listed Assets

– Schroders Capital Sustainability & Impact Report 2022

– Engagement Blueprint

– Group Human Rights Position Statement

– Modern Slavery Statement 2022

Key insights articles

– Podcast: What is natural capital and why is it important for investment decisions?

– How credit investors hold mining companies to account for their impact on nature

– Assessing our impact on nature – Deforestation

– Q&A: why tackle harmful deforestation – and how?

– Investing in Natural Capital: benefits and barriers

– Investing in nature: a Q&A with our Global Head of Sustainable Investment

https://tnfd.global/.

https://forest500.org/rankings/financial-institutions.

Schroders Group Nature and Biodiversity Position Statement

This Group Nature and Biodiversity Position Statement is reviewed on an annual basis and communicated to all

internal and external stakeholders and interested parties.

Peter Harrison

Group Chief Executive

18 July 2023