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SUSTAINABLE
INVESTMENT
REPORT
VOTING AND ENGAGEMENT
AT A GLANCE
Our active ownership statistics from Hannah Simons
the quarter. Head of Sustainability Strategy
ACTIVE OWNERSHIP Ukraine war undoubtedly raises
IN PRACTICE questions on sustainability.
Our expectations of companies this As we prepare this report, the war in Ukraine
continues. Russia’s invasion is having
AGM season and case studies.
devastating consequences for the millions
of people living there.
SUSTAINABILITY
INSIGHTS On the environmental side, our continued
reliance on fossil fuels has been exposed.
Increased attention is rightly being given
SCHRODERS' EVIDENCE-BASED to the speed of the energy transition. As an
active manager, we play a critical role in
PATH TO NET ZERO supporting the transition, and I’m proud that
Schroders' decarbonisation pathway has
A FRAMEWORK FOR AVOIDED been validated by the Science-Based-Targets-
EMISSIONS ANALYSIS Initiative. Read more on what this means
in practice on Page 9. We also introduce
work we’ve undertaken in collaboration with
WHY SHOULD INVESTORS CARE Singapore's sovereign wealth fund GIC on
ABOUT WASTE MANAGEMENT? avoided emissions (see Page 10).
COMPANIES WE’VE We are also busy preparing for the 2022
AGM season. Tim Goodman, our new
ENGAGED WITH Head of Corporate Governance, shares his
expectations of the companies we invest in
F I R S T (see Page 5). Another key milestone is the
Q U A RTE R resolution we’ve co-filed at Volkswagen.
202 2
SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
O U R E N G AG E M E NT S A N D VOT I N G
ENGAGEMENT IN NUMBERS
Sector
Type Narrow scope Broad scope
Scope In-depth Investor-led Collaborative 3% 4%
sustainability engagement engagements and 2% 14%
engagement communicating
9% 8%
expectations at scale
Number 75 57 1756 12% 4%
of engagements
15% 20%
9%
Consumer Discretionary Information Technology
Consumer Staples Materials
Energy Real Estate
Financials Telecommunication Services
Health Care Utilities
17% Industrials
28%
26%
Format
4% 24%
1% 1%
4%
1%
Region
94 %
Asia Pacific 24%
Europe (ex-UK) 26%
Latin America 1% Email
Middle East and Africa 4% Collaborative engagement
North America 28% Call
UK 17% Meeting
Data Source: Schroders, 31 March 2022
2
SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
O U R E N G AG E M E NT S A N D VOT I N G
VOTING IN NUMBERS
This quarter we voted on 1008 meetings and approximately Direction of votes
96% of all resolutions. We voted on 32 sustainability-related 1%
shareholder resolutions, of which we voted with management 11%
on 13.
We publish our voting decisions on the voting section of Schroders’ website.
88%
We believe we have a responsibility to exercise our voting rights. We evaluate and
vote in line with our fiduciary responsibility to clients. We vote on all resolutions
unless we are restricted from doing so, for example through share blocking.
For Against Abstain
9% Category of vote against management
9 %
5% 1%
32%
5%
11% 39%
3 % 43%
11%
28%
4%
Region Allocation of capital Routine business
Anti-takeover Shareholder proposals
Asia Pacific 43% Remuneration Director related
Europe (ex-UK) 32% Reorganisation & mergers Other
Latin America 4%
Middle East and Africa 3%
North America 9%
UK 9%
Source: Schroders, 31 March 2022
3
SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
O U R E N G AG E M E NT S A N D VOT I N G
ENGAGEMENT PROGRESS
In the first quarter of 2021, Schroders Requests for change effectiveness
undertook 95 sustainability team-led
engagements with the aim of driving Engagement progress from Q1 2021 Three years: 2018 vs 2019 vs 2020
change. The pie chart shows the progress
%
15% 100%
we have made on revewing these
engagements in the first quarter
2% 13%
of 2021. 90%
The bar chart shows the effectiveness of our requests 80%
for change over a three-year period. We have found
that typically at least two years of dialogue is required
before our requests begin to materialise in the form of 70%
measurable change. It is for this reason that the two
most recent years are omitted.
We record our engagement activity in our proprietary 60%
research database to facilitate the monitoring of Engagement
companies in which we are invested. We define progress
expected timeframes for targets, track progress and – if 50%
necessary – revise them.
In order to review progress on historical engagements
they are categorised as “Achieved”, “Almost”, “Some 40%
change”, “No change” or “No further change required”.
If no change is required it is usually because we have
sold out of the position. 30%
We typically review requests for change one year after
they have been made and then on an ongoing basis. 38%
We will escalate where necessary. 20%
32%
10%
Achieved Almost Some change 0%
No change No further change required 2018 2019 2020
Source: Schroders, 31 March 2022
4
SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
AC T I VE O W N E R S H I P
OUR EXPECTATIONS OF COMPANIES THIS AGM SEASON
How we are using our voting rights to encourage companies to equip themselves for
long-term sustainable growth
Schroders has set out its voting and engagement GENDER AND ETHNIC DIVERSITY
priorities in a letter sent to thousands of companies In the UK, Europe and North America, we expect larger companies
around the world. to have at least 33% female board directors and for smaller
companies we expect at least 20% female board representation. We
As an investment manager, we exercise our right to vote on all will vote against the governance and/or nominations committee
resolutions at shareholder meetings. We engage on an ongoing chair where we have concerns about insufficient gender diversity
basis to encourage the companies we invest in to act in our clients’ on the board. In the UK and North America, we also expect large
long-term interests. companies to have at least one non-white director.
We are therefore, increasingly of the view that board directors
EXECUTIVE PAY
should assume greater accountability for sustainability matters as
they are responsible for the longer term success of the company. We are more likely to vote against the chair of the compensation
Where this is not happening, we will consider voting against the committee, where we have persistent or particularly serious
re-election of directors. concerns about executive pay practice at the company.
Our letter sets out the areas that we are most likely to vote against OVERSIGHT OF STAFF AND CULTURE
the re-election of directors: We are more likely to vote against directors, including the board
chair or lead director in exceptional cases, where we deem the
CLIMATE CHANGE board to have failed in its responsibility for oversight of culture and
We will be more likely to vote against directors, including board human capital.
chairs or members of certain committees, when we believe that
the company is not taking what we consider to be sufficient action We will, of course, take into account our experience of the
on climate change. company and its size when making these decisions. For example,
we recognise that smaller companies face greater resource and
financial constraints.
AUDITOR INDEPENDENCE OR QUALITY
We will be more likely to vote against the chair of the audit
committee of companies where we have persistent or serious
concerns around the audit, auditor or other matters relating to
auditor independence and audit quality.
READ MORE:
Tim Goodman About our active ownership approach this
Head of Corporate Governance season here
5
SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
AC T I VE
O W N E R S H I P
SCHRODERS’ DIRECTOR DIALOGUE EVENT
How we’re approaching active ownership with a different stance.
At Schroders, we approach active ownership can and should be held to account for climate,
differently. We believe it is important to set how we can get the worker voice into board
clear expectations for companies around rooms and how ESG metrics can feed into
sustainable business practices. However, executive remuneration. We believe it is
we also understand that there is no ‘one important to work together with companies
size fits all’ approach to many of these to help them adapt to these issues in the most
topics. Discussion around the strategies effective way – this is a key element of the
that companies can put in place to manage value we bring to our clients.
these risks is key to ensuring we are making
progress and continue to evolve and improve
Feedback from this event was positive and we
our understanding
will look to hold more of these events in other
of these issues.
regions.
In February 2022, we held our inaugural “For us, our role as active owners
Director Dialogue event. We invited FTSE does not end with setting
350 Non-Executive Directors and their
representatives to come together with
expectations. “
Schroders’ sustainability specialists and fund
We believe working in collaboration
managers, to discuss some of our most
with companies to help them meet these
complex sustainability challenges.
expectations is key to achieving better
We deliberately chose topics which were ‘grey’
outcomes for our clients and society.
areas, where there are a variety of different
approaches companies may take to address
these challenges. We discussed how boards
READ MORE:
For more on our approach to engagement,
please see our Engagement Blueprint
Kimberley Lewis
Head of Active Ownership
6
SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
AC T I VE
O W N E R S H I P Carol Storey
Active Ownership Manager
CLIMATE ENGAGEMENT AT SCHRODERS
Our newly-published Climate Transition Action Plan and Engagement Blueprint lay out our approach to
engaging with companies on climate issues.
Following Schroders becoming one of the first By September 2021, one-third of the America that are key to driving the energy
signatories to the Net Zero Asset Managers companies we contacted had set, or transition. They were selected from the
Initiative, our CEO Peter Harrison wrote to all committed to set, a science-based target, up companies included in the CA100+ Net Zero
FTSE 350 companies (excluding investment from one-sixth at the time we originally wrote. Company Benchmark.
trusts) at the start of 2021. In that letter, Moreover, over the course of 2021, we In this context, we published our own Climate
he set the expectation that all companies engaged with around 10% of these 290 Transition Action Plan (CTAP), in December
produce and publish detailed transition plans companies at least one more time on climate 2021; outlining the key pillars of our strategy
to Net Zero during 2021. Of the 295 contacted, change, either as a follow-up to our letter or to achieve Net Zero by 2050 in both our
46 companies quickly acknowledged as part of an ongoing dialogue about climate operational and financed emissions. Active
our letter, 21 companies provided more change. We will be assessing companies’ ownership will be a critical tool in achieving
information on their approach and 12 progress against the expectation we have set this and in the CTAP we introduce our
have requested meetings. On top of this, in our letter over the first quarter in 2022. new climate engagement and escalation
some companies have already made 2050 In September 2021, we extended the reach of framework. This sets out how we will use
commitments and we have encouraged them this engagement as we wrote to the Chairs of our influence as investors to help drive the
to set interim targets. over 80 companies in Europe and North transition to a low carbon economy.
1.
Climate
2.
Company
3.
Monitoring
4.
Voting Policy
5.
Escalation practice
expectations prioritisation progress
and selection
We set four objectives We focus our We monitor company We have developed We use a range of
we expect large engagement acticity progress against our climate voting priciples escalation tactics to
and medium sized on companies that objectives over time covering shareholder take action against
companies to adopt we beleive are highly using metrics in our resolutions, 'Say on companies that do not
inorder to align their exposed to, but least climate tools and Climate' resolutions make progress within
business activites prepared for, the dashboards. and when we will vote a specified timeframe.
with the goals of the climate transition against boards.
Paris Agreement
READ MORE: Using this framework, we are going to prioritise around 25% of the 373 companies we contacted last year for further engagement
On our climate engagement plan in our in 2022. We will also be engaging with a further 475 companies on their climate transition plans, as we push for further change.
Climate Transition Action Plan here These were selected either because of their contribution to our financed emissions or because they are companies where our
investment and influence is greatest.
7
SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
AC T I VE O W N E R S H I P
MYSTORY: HOW THE PANDEMIC CONNECTED ME TO A
COMPANY IN AFRICA
In our latest #MyStory video, Tom Walker tells us how events in the pandemic furthered his appreciation for
digital connectivity and made him look at a company in Africa in a new light.
Helios Towers is the leading independent Tom says “Providing the infrastructure Schroders tracks the financial benefits
telecommunications tower company in for mobile network operators means as well as the social and environmental
Africa and the Middle-East. It has over Helios connects individuals, communities impact of companies. A company that
8,765 sites worldwide and is changing the and services. But crucially it also brings provides a mission-critical service, benefits
lives of the communities across the region. employment. The company has a policy of the community and has an eye on the
Tom Walker tells us how events in the hiring people from the local community, sustainability of its operations is likely to
pandemic furthered his appreciation for ensuring that their workforce mirrors the bring greater value to shareholders.
digital connectivity and made him look at a communities they serve.”
company in Africa in a new light. Tom says “Helios is more than just a company
Africa is one of the world’s fastest growing with a strong balance sheet. During lockdown
Tom says “You might think a and youngest markets. By 2100, more than restrictions I would have really struggled
telecommunications company on the other half of the world’s under 35s are expected without the digital connectivity. Checking on
side of the world is far removed from my life to live in Africa, a demographic that makes it family and keeping up an education for my
in London. But when I stopped to think how likely that businesses based on connectivity children would have been impossible, so it’s
stuck I would be without my phone and the will grow. made me appreciate the impact that Helios
internet, I realised the significance that a has on communities”.
company like this can have on an individual Tom says “Helios is likely to continue to profit
and their family”. as demand increases, and they plan to roll See our full series of MyStory investment
out towers into 1500 new rural sites over the case studies here.
A recent UN report noted that the pandemic next five years. But how do they address their
heightened the dependence that Africa has environmental impact? As an independent
on telecommunications. Rural communities tower company, Helios has been able to bring
were able to use their phones for education, together a number of network operators to
healthcare and banking. Towns without use the same tower. This shared infrastructure
connectivity found themselves cut off from keeps costs down but importantly reduces
essential services. damage to the environment”.
WATCH MORE:
Watch the video on
Tom Walker
Helios Towers here.
Co-Head of Global Listed Real Assets
Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell any financial instrument/securities or
adopt any investment strategy.
8
SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
S U S TA I N A B I L I T Y I N S IG HT S
SCHRODERS' EVIDENCE-BASED
PATH TO NET ZERO
In March 2022, we became the largest asset manager by AUM1
to have its targets validated by the SBTi2. In this Q&A with
Stephanie Chang, we explore what this means in practice.
Q. WHAT HAVE WE DONE? emissions over the next decade, consistent
with a 1.5 degree pathway. However, the
A. As an active asset manager we have put our financed emissions embedded in our portfolios
business on a pathway to net zero emissions, are 6,000 times larger than our operational
protecting the investments we manage emissions and ultimately all of our portfolios
against the risks that disruption will cause and will need to transition.
giving our clients access to the opportunities
presented by the transition. It is for that reason Q. WHAT DOES IT MEAN TO HAVE OUR
we committed to and submitted a science- TARGETS VALIDATED?
based target in 2021, which has subsequently
been validated by the Science Based Targets A. To transition our portfolios we had to
initiative (SBTi). Our commitment aligns our establish our baseline position and set science-
portfolios to a 1.5 degree world by 2040. based targets. The SBTi methodologies enable
us to calculate the carbon footprint and
Q. WHY SBTI? temperature alignment of the listed companies
we invest in and the portfolios we manage,
A. Establishing science-based targets is an to a recognised market standard. As we look
expression of our commitment to a robust, forward and methodologies are agreed,
evidence-based net zero pathway and we further asset classes will be incorporated into
believe that the SBTi has become the leading our target.
industry standard. The consistency and
comparability of the SBTi approach are critical We are proud to have become the largest
for our industry and others to drive and asset manager to have its targets checked and
demonstrate progress. validated by the SBTi. It is a recognition of our
commitment to climate leadership and we
Q.WHAT IS THE SCOPE OF OUR hope will encourage our peers to make similar
COMMITMENT? transition commitments. Deep and extensive
A. It covers all of the emissions related to our engagement with investee companies is
business activity: those from our operations fundamental to our climate strategy and our
and the portfolios we manage on behalf of SBTi commitment provides the robust evidence
our clients. We achieved carbon neutrality in that underpins it.
our business operations in 2019, with offsets,
and we now have demanding targets for the Stephanie Chang,
reduction of our operational and supply-chain Head of Integration
As at March 2022.
1
Science-Based Targets initiative
2
9SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Andrew Howard
S U S TA I N A B I L I T Y I N S IG HT S Mervyn Tang Global Head of
Head of Sustainability Strategy, APAC Sustainable Investment
Low Ping Yee Wong De Rui
A FRAMEWORK FOR AVOIDED Head of Institutional
Business/Sustainability Lead Southeast Asia
Vice President,
Economics and
EMISSIONS ANALYSIS Investment Strategy, GIC
Rachel Teo
The avoided emissions framework, from Schroders' sustainable investment Head of Futures Unit and Senior
team in collaboration with Singapore's sovereign wealth fund GIC, is an Vice President, Economics and Investment Strategy, GIC
important extension of our investment analysis toolkits.
Conventional carbon measures focus on The Avoided Emissions framework is Figure 1: Graphical illustration of a wind turbine manufacturer’s carbon footprint
the emissions companies generate from built for direct application to investment
their own operations and value chains, analysis and helps us to:
emphasising the negative impact of their
business models but not the benefits 1. Sharpen our ability to identify and
stemming from greater use of clean assess the decarbonisation contribution
technologies. The Avoided Emissions of winners from the green transition, Scope 1
framework we have developed provides which are not easily captured using direct emissions Emissions
from operations Avoided Emissions –
a more complete picture by capturing traditional carbon metrics or CH4 CO2 emissions saved outside
companies’ contributions to emissions “green revenues” N2O SF 6 PFCs the value chain of the
HFCs
company’s activities
reductions through the substitution of
high carbon activities with low carbon 2. Allow comparison with Scope 1, Scope 3
alternatives, which are not reflected 2 and 3 emissions under a common all other indirect emissions
from upstream or Less
in their conventional Scope 1, 2 and unit of measurement, enabling a more downstream activities (e.g. gas
3 metrics. See Figure 1. integrated and holistic approach to Scope 2 emissions from suppliers) energy
building a portfolio that reflects both indirect emissions from
purchased energy
Avoided Emissions capture savings, climate risks as well as opportunities
relative to a baseline where low carbon More
technologies are not deployed. Greater So far, we have examined 19 carbon-
wind
use of clean technologies creates real avoiding activities and industries, and energy
world emissions reductions which quantified the emission savings for each
will be vital to global decarbonisation dollar of revenue (tCO2e/US$m). If these
efforts. Our framework is based on value activities are adopted as widely as we
expect will be the case in 2030, almost Wind turbines contribute to economy-wide reductions in emissions
chain analysis, drawing on academic
a quarter of economy-wide emissions by substituting more carbon-intensive gas power generation
and industry literature to capture the
contribution of a broad set of industries could be avoided.
to Avoided Emissions, with an emphasis
on investability and scalability.
READ MORE:
The full paper on avoided emissions is available to professional investors and advisors on request.
Source: Schroders, GIC.
10SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Samuel Thomas,
S U S TA I N A B I L I T Y I N S IG HT S Sustainable Investment
WHY SHOULD INVESTORS CARE ABOUT Analyst
WASTE MANAGEMENT?
This problem is worsening at an alarming rate, underpinned by powerful megatrends such as
population growth, urbanisation and economic development.
WHY IS WASTE A PROBLEM? direct our focus on the emerging technologies 3. LANDFILL METHANE CAPTURE
Poor waste management contributes to that are being developed to reduce waste
Landfills account for 11% of global
climate change, directly affects ecosystems once it’s already been created.
methane emissions – this is the gas
and generates air, water and land pollution. There are three areas we believe are that is generated as organic matter
For example, landfills alone – in which 37% particularly interesting. decomposes. It has 20-30x higher
of global municipal solid waste (MSW) is global warming potential compared to
disposed - account for 8-10% of human carbon dioxide over a 100 year period.
activity-based methane emissions. 1. ARTIFICIAL INTELLIGENCE
But the gas can be captured and used
Food waste, in particular, is a pressing issue – AND AUTOMATED SORTING as a clean fuel source, preventing
its economic cost is estimated to be $1 trillion It’s estimated that over half of all waste landfill gas emissions and displacing
a year, according to the Food and Agriculture management tasks in material recovery the use of fossil fuel alternatives.
Organisation of the United Nations. It facilities can be automated. Using
can lead to greater water scarcity, loss of computer vision, 3D laser scans and It is estimated, that one million tonnes
metal sensors, combined with machine of MSW can capture enough methane
biodiversity, adverse health effects and soil
learning and advanced robotics, the to power around 1,850 European
erosion – which in itself can lead to increased accuracy and sensitivity of automated homes for a year .
risk of conflict and loss of livelihoods. sorting can be dramatically improved.
Social and political pressure for waste While other methods of transforming
The vast majority of companies emerging
creators to handle waste in more sustainable waste to energy have higher energy
in this space offer advanced scanning
conversion efficiency, where landfills
ways is intensifying. As a result, the and sorting technologies that can be
already exist, the environmental impact
regulatory burden is ratcheting up. There retrofitted onto existing sorting lines,
of capturing the methane that would
appears to be unanimity among regulators which means that significant capital
otherwise enter the atmosphere is
to enforce a “polluter pays” principle. This outlays can be avoided.
clearly positive.
could include increased taxes on waste
imports/exports, rising landfill gate prices
and increasingly punitive fines for the 2. WASTE-TO-ENERGY
mismanagement of waste and illegal This is a method by which electricity or
dumping. heat is generated from the processing
and treatment of waste. It cuts demand
for landfill and dumping sites, lowers
WHAT IS THE OPPORTUNITY dependence on fossil fuels and in some
FOR INVESTORS? instances, reduces environmental
pollution.
Analysis by Allied Market Research suggests
annual waste production is expected to grow It’s expected to be the fastest-growing READ MORE HERE:
29% by 2030 and by nearly 70% by 2050. waste management sector over the
Given the rapid, expected rise in MSW next five years.
generation over the coming decades, we
Sources: 1US Environmental Protection Agency 2United Nations EconomicCommission for Europe 3Clarke Energy 11SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
O U R E N G AG E M E NT S Company E S G Company E S G
A N D VOT I N G Consumer Discretionary BTG Hotels ✓
21st Century Fox ✓ Burberry ✓
COMPANIES WE’VE 4imprint ✓ BYD ✓
ENGAGED WITH 888
About You
✓
✓
Cafe De Coral
Canadian Tire
✓
✓
We undertook 1888 engagements this quarter with the 1775 Accor ✓ Carmax ✓
companies listed. We show here whether we were tackling Adidas ✓ Carnival ✓
an environmental, social or governance issue with each. The
chart shows how we categorised them by stakeholder, from Advance Auto Parts ✓ Carnival ✓
employees and communities to governments and regulators. Advtech ✓ Carphone Warehouse ✓
For further details about active ownership at Schroders, please
contact your client director. Ald Automotive ✓ Charter Communications ✓
Alibaba ✓ China Dongxiang ✓
Stakeholder breakdown of engagements Amazon ✓ China Education ✓
Anta Sports ✓ China Lilang ✓
1% 2% AO World ✓ China Resources Mixc Lifestyle ✓
3% Aptiv ✓ China Yongda Automobiles Services ✓
2% AutoLiv ✓ Chipotle Mexican Grill ✓
43%
Stakeholders Autozone ✓ Chow Tai Fook Jewellery ✓
discussed BAIC Motor ✓ Cie Automotive ✓
34%
Bajaj Auto ✓ Cie Financiere Richemont ✓
Barratt Developments ✓ Cie Generale des Etablissements
✓
Michelin
15% Basic Fit ✓
Community Customers Cie Plastic Omnium ✓
Bayerische Motoren Werke ✓ ✓
Governance Suppliers Coach ✓
Bellway ✓
Environment Regulators & governments
Coats ✓
Berkeley ✓
Employees
Comcast ✓
Best Buy ✓
Compass ✓
Bilibili ✓
Countryside Properties ✓
Booking ✓
Ctrip.Com International ✓
BorgWarner ✓
Daimler ✓
Bosideng ✓
Dalata Hotel ✓
Bovis Homes ✓
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
Source: Schroders, 31 March 2022
12SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
Darden Restaurants ✓ General Motors ✓ J D Wetherspoon ✓
Dieteren Trading ✓ Genuine Parts ✓ Jc Decaux ✓
Discovery Communications ✓ GOME Electrical ✓ JD Sports Fashion ✓
DISH Network ✓ Great Wall Motor ✓ JD ✓
Dollar General ✓ Grenke ✓ Jiumaojiu ✓
Dollar Tree ✓ Grupo Televisa ✓ JS Global Lifestyle ✓
Dollarama ✓ Guangdong Shengyi Science ✓ JustEat Takeaway ✓
Domino's Pizza ✓ Entain ✓ Kaufman & Broad ✓
Dr. Martens ✓ H & M Hennes & Mauritz ✓ Kering ✓
Dunelm ✓ Hadilao ✓ Kingfisher ✓
Electrolux ✓ Hasbro ✓ L Brands ✓
Essilor International ✓ Hella ✓ La Francaise des Jeux Societe ✓
Etsy ✓ Hengli Petrochemical ✓ Las Vegas Sands ✓
Euromoney ✓ Hermes ✓ Lennar ✓
Europcar Groupe ✓ Hero Honda ✓ Li Auto ✓
Eutelsat ✓ Hilton Worldwide ✓ Liberty Media ✓
Expedia ✓ Hollywood Bowl ✓ Live Nation Entertainment ✓
Famous Brands ✓ Home Depot ✓ LKQ ✓
Faurecia ✓ Host Hotels ✓ Lowes Cos ✓
Fiat Chrysler ✓ Huayu Automotive Systems ✓ Luk Fook ✓
Fluidra ✓ Huazhu ✓ Macauto Industrial ✓
Darty ✓ Hugo Boss ✓ Magna International ✓
Ford Motor ✓ Hunter Douglas ✓ Mahindra&Mahindra ✓
Foschini ✓ Inchcape ✓ Maisons du Monde ✓
Fu Shou Yuan International ✓ Inditex ✓ Man Wah ✓
Future ✓ Informa ✓ MarineMax ✓
Galaxy Entertainment ✓ Intercontinental Hotels ✓ Marks and Spencer ✓
Games Workshop ✓ Interpublic ✓ Marriott ✓
Gap ✓ Italtile ✓ Maruti Suzuki India ✓
Garmin ✓ ITV ✓ McDonalds ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
13SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
MGM China ✓ Pets at Home ✓ SJM ✓
MGM Resorts ✓ Pool ✓ Skyworth Digital ✓
Minth ✓ Pou Sheng International ✓ SMCP ✓
Mohawk Industries ✓ Prada ✓ Sodexo ✓
Mulitchoice ✓ Prosiebensat 1 Media ✓ Sol Melia ✓
N. Brown ✓ Prosus ✓ Sports Direct ✓
NagaCorp ✓ Publicis ✓ Starbucks ✓ ✓
Naspers ✓ Pulte ✓ Steinhoff International ✓
Netflix ✓ PVH ✓ Super ✓
New Oriental Education ✓ Q Technology ✓ TAKKT ✓
Newell Brands ✓ Ralph Lauren ✓ Target ✓
News Corporation ✓ Rank ✓ Taylor Wimpey ✓
Next ✓ Redrow ✓ TCL Multimedia Technology ✓
Nexteer Automotive ✓ RELX Group ✓ Techtronics ✓
Nielsen ✓ Renault ✓ ✓ ✓ Telenet ✓
Nien Made Enterprise ✓ ✓ Restaurant Brands ✓ Television Francaise 1 Group ✓
Nike ✓ Restaurant ✓ Tesla Motors ✓
Ningbo Joyson Electronic ✓ Rightmove ✓ Thomson Multimedia ✓
Nokian Tyres ✓ Ross Stores ✓ Tianneng Power International ✓
Norwegian Cruise Line ✓ Royal Caribbean Cruises ✓ Titan Industries ✓
NVR ✓ Royal Unibrew ✓ TJX ✓
Ocado ✓ RTL ✓ Toung Loong Textile Manufacturing ✓
Omnicom ✓ Samsonite International ✓ Trinity Mirror ✓
Pacific Textiles ✓ Schaeffler ✓ Tui ✓
Paddy Power Betfair ✓ Schibsted ✓ Ulta Salon, Cosmetics & Fragrance ✓
Pandora ✓ Sekisui Chemical ✓ VF ✓
Pearson ✓ Shanghai Auto ✓ Vivendi Universal ✓
Penn National Gaming ✓ Shanghai Jinjiang International Hotels ✓ Volkswagen ✓ ✓
Development
Pepco ✓ Watches of Switzerland ✓
Shaw Communication ✓
Persimmon ✓ WH Smith ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
14SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
Whirlpool ✓ Brf ✓ Dr Wu Skincare ✓
Whitbread ✓ ✓ Britannia Industries ✓ Elior ✓
Wolters Kluwer ✓ British American Tobacco ✓ Essity ✓
Woolworths ✓ Britvic ✓ Estee Lauder ✓
WPP ✓ Brown-Forman ✓ Colruyt ✓
Wynn Macau ✓ Budweiser Brewing ✓ Fomento Economico Mexicano ✓
Wynn Resorts ✓ Campbell Soup ✓ Forfarmers ✓
Xpeng ✓ Carlsberg ✓ General Mills ✓
Xtep International ✓ Carrefour ✓ ✓ Glanbia ✓
Yue Yuen Industrial ✓ Casino, Guichard-Perrachon et Cie ✓ Greggs ✓
Yum China ✓ Ceconomy ✓ Health and Happiness H&H ✓
International
YUM! Brands ✓ China Feihe ✓
Heilongjiang Agriculture ✓
Zalando ✓ China Foods ✓
Hengan International ✓
Zhongsheng ✓ ✓ China Mengniu Dairy ✓ ✓
Hershey Foods ✓ ✓
Allied Properties Investments ✓ China Modern Dairy ✓
Hilton Food ✓
Consumer Staples China Resources Beer ✓
Hindustan Unilever ✓
Alimentation Couche-Tard ✓ Chongqing Brewery ✓
Hormel Foods ✓
Altria ✓ Church & Dwight ✓
Imperial Brands ✓
Amaggi Luxembourg ✓ Clicks ✓
ITC ✓
Angel Yeast ✓ Clorox Company ✓
J Sainsbury ✓
Anheuser-Busch Inbev ✓ Coca Cola ✓ ✓
Jacobs Douwe Egberts ✓
Archer Daniels Midland ✓ Colgate Palmolive ✓
JBS ✓
Associated British Foods ✓ Constellation Brands ✓
JD Health International ✓
Ausnutria Dairy ✓ Costco Wholesale ✓
Jeronimo Martins ✓
Bakkafrost ✓ Cranswick ✓
Kellogg ✓
Bellring Brands ✓ CVS Health ✓
Kerry ✓
Bid Corp ✓ Dali Foods ✓
Kimberly Clark ✓
Blue Moon ✓ Danone ✓
Koninklijke Ahold Delhaize ✓
BRD Groupe Societe Generale ✓ Diageo ✓
Kraft Heinz Foods ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
15SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
Kroger ✓ SalMar ✓ Walmart ✓
KWS Saat ✓ Saputo ✓ Want Want China ✓ ✓
Lamb Weston ✓ Sligro Food ✓ George Weston ✓
Loblaw ✓ Sonae ✓ WH ✓
Loccitane ✓ Spar ✓ Wynnstay ✓
L'Oreal ✓ SSP ✓ Xiabuxiabu Catering Management ✓
Magnit ✓ ✓ Suedzucker ✓ Yihai ✓
Marfrig Global Foods ✓ Sun Art ✓ Energy ✓
Marine Harvest ✓ Svenska Cellulosa Aktiebolaget ✓ Aker BP ✓
Massmart ✓ Swedish Match ✓ Baker Hughes ✓
McCormick & Company ✓ Sysco ✓ Bharat Petroleum ✓
Metro ✓ Tata Global Beverages ✓ BP ✓
Metro ✓ Tate & Lyle ✓
Cairn Energy ✓
Minerva ✓ Tci ✓
Canadian Natural resources ✓
Molson Coors Brewing ✓ Tesco ✓ ✓
Cenovus ✓
Mondelez International ✓ Thai Beverage ✓
CGG ✓
Monster Beverage ✓ The J.M. Smucker ✓
Chevron Texaco ✓
Nestle ✓ Tiger Brands ✓
China Oilfield Services ✓
Nissin Foods ✓ Tingyi ✓
China Petroleum & Chemical ✓
OCI ✓ Toly Bread ✓
CNOOC ✓
Ontex ✓ Tongwei ✓
Coal India ✓
Pepsico ✓ Tractor Supply ✓
Conoco Phillips ✓
Pernod Ricard ✓ Tsingtao ✓
Contura Energy ✓
Philip Morris ✓ Tyson Foods ✓
Core Laboratories ✓
Pick n Pay Stores ✓ Unilever ✓ ✓
Devon Energy ✓
Premier Foods ✓ Uni-President China ✓
Diamondback Energy ✓
Procter & Gamble ✓ Vinda International ✓
Diversified Gas & Oil ✓
PZ Cussons ✓ ✓ Vitasoy ✓
Enbridge ✓
Reckitt Benckiser ✓ Walgreens Boots Alliance ✓
Eni ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
16SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
EOG Resources ✓ Phillips 66 ✓ Admiral ✓
Equinor ✓ Pioneer Natural Resources ✓ Adyen ✓
Maurel & Prom ✓ Reliance Industries ✓ Aegon ✓
Euronav ✓ Repsol ✓ ✓ AFLAC ✓
Exxaro ✓ Romgaz ✓ Ageas ✓
Exxon Mobil ✓ Royal Dutch Shell ✓ Agile ✓
Frontline ✓ Royal Dutch Shell ✓ Agricultural Bank of China ✓
Fugro ✓ Sasol ✓ AIA ✓
Galp ✓ Schlumberger ✓ AJ BELL ✓
Gaztransport et Technigaz ✓ Subsea7 ✓ A-Living Services ✓
Guanghui Energy ✓ Suncor Energy ✓ Allfunds ✓
Halliburton ✓ Transcanada Pipelines ✓ Allianz ✓
Hess ✓ Transgaz ✓ Allied Irish Banks ✓
Hunting ✓ United Energy ✓ Allstate ✓
Indian Oil ✓ Valero ✓ Altamir ✓
Kinder Morgan ✓ Verbio Vereinigte ✓ American Express ✓
Koninklijke Vopak ✓ Verbio Vereinigte BioEnergie ✓ American International ✓
Kunlun Energy ✓ Vivo Energy ✓ American Tower ✓
Marathon Oil ✓ Williams Companies ✓ Ameriprise Financial ✓
Marathon Petroleum ✓ Wood ✓ Amlin ✓
MOL Magyar Olaj ✓ Yanzhou Coal Mining ✓ Amundi ✓
Neste Oil ✓ Financials AON ✓
Occidental Petroleum ✓ 3i ✓ Aroundtown ✓
Oil & Natural Gas India ✓ 3i Infrastructure ✓ Arthur J Gallagher ✓
OMV Petrom ✓ Aareal Bank ✓ Ashmore Group ✓
Oneok ✓ ABN AMRO ✓ ASR Nederland ✓
PetroChina ✓ Ackermans & van Haaren ✓ Assura ✓
Petrofac ✓ Adler Group ✓ Assurant ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
17SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
Aviva ✓ CaixaBank ✓ Cincinnati Financial ✓
AXA ✓ Caledonia Investments ✓ CITIC Securities ✓
Axis Bank ✓ Canadian Imperial Bank of ✓ Citigroup ✓
Commerce
Bajaj Finance ✓ Citizens Financial ✓
Capital & Counties Properties ✓
Banca Transilvania ✓ Ck Hutchison ✓ ✓
Capital One Financial ✓
Banco de Sabadell ✓ Close Brothers ✓
Capitaland Investment ✓ ✓
Bank Of America ✓ CLS ✓
CB Richard Ellis ✓
Bank of China ✓ CMC Markets ✓
CBOE ✓
Bank of Communications ✓ CNP Assurances ✓
Chicago Mercantile Exchange ✓
Bank of East Asia ✓ Coface ✓
China Aoyuan Property ✓
Bank of Ireland ✓ Cofinimmo ✓
China Cinda Asset Management ✓
Bank of Montreal ✓ Comerica ✓
China Citic Bank ✓
Bank of Nova Scotia ✓ Commerzbank ✓
China Construction Bank ✓
Barclays Africa ✓ Country Garden ✓
China Everbright IHD ✓
Barclays ✓ Country Garden Services ✓
China Galaxy Securities ✓
BBGI ✓ Cpi Property ✓ ✓
China International Capital ✓
BBVA ✓ Credit Agricole ✓
China Life Insurance Company ✓
BCP-Banco Comercial Portugues ✓ Credit Suisse Group ✓
China Literature ✓
Beazley ✓ Crown Castle ✓
China Logistics Property ✓
Beni Stabili ✓ Danske Bank ✓
China Minsheng Bank ✓
Berkshire Hathaway ✓ Derwent London ✓
China Overseas Grand Oceans ✓
BlackRock ✓ Deutsche Boerse ✓
China Overseas Land & Investment ✓
BNP Paribas ✓ Deutsche Pfandbriefbank ✓
China Pacific Insurance ✓
Brait ✓ Digital Realty Trust ✓
China SCE Property ✓
Brewin Dolphin ✓ Direct Line Insurance ✓
China Taiping Insurance ✓
Bridgepoint ✓ Discover Financial Services ✓
China Vanke ✓
British Land ✓ Discovery ✓
Chubb ✓
Brookfield Asset Management ✓ Duke ✓
CIFI ✓
Brown & Brown ✓ DWS ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
18SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
Emirates NBD ✓ Growthpoint ✓ IntegraFin ✓
Equity Residential ✓ Guangzhou R&F property ✓ Intercontinental Excahnge ✓
Esr Cayman ✓ ✓ Haitong International Securities ✓ Intermediate Capital ✓
Essex Property Trust ✓ Haitong Securities ✓ Intesa Sanpaolo ✓
Eurazeo ✓ Hammerson ✓ Invesco ✓
Euronext ✓ Hang Lung Properties ✓ Investec ✓
Everest Re ✓ Hargreaves Lansdown ✓ Investec ✓
Extra Space Storage ✓ Hartford Financial Services ✓ Investor ✓
FactSet Research Systems ✓ HDFC ✓ Invitation Homes ✓
Far East Horizon ✓ Hdfc Bank ✓ Jpmorgan Chase & Co ✓
First Interstate Bancsystem ✓ Healthcare Properties ✓ JSE ✓
First Rand ✓ HgCapital Trust ✓ Jupiter Fund Management ✓
First Republic Bank ✓ HICL Infrastructure ✓ Kaisa ✓
Flatex Degiro ✓ Hiscox ✓ Kasikornbank ✓
FleetCor Technologies ✓ Hong Kong Exchanges and Clearing ✓ KBC ✓
Flow Traders ✓ Hopson Development ✓ Kerry Properties ✓
Future Land Development ✓ HSBC ✓ ✓ KeyCorp ✓
Gecina ✓ HSBC ✓ Kimco ✓
Gemdale ✓ Huatai Securities ✓ Kinnevik ✓
Gemdale Properties and Investment ✓ Huntington Bancshares ✓ Klepierre ✓
GF Securities ✓ Hysan Development ✓ Kotak Mahindra Bank ✓
Goldman Sachs ✓ ICBC ✓ KWG Property ✓
Grainger ✓ ICG Enterprise Trust ✓ Lancashire ✓
Grand City Properties ✓ Icici Bank ✓ Land Securities ✓
Great Portland Estates ✓ IG ✓ Law Debenture ✓
Greenland Hong Kong ✓ IndusInd Bank ✓ LEG Immobilien ✓
Greentown China ✓ ING ✓ Legal & General ✓
Greentown Service ✓ Ingenia ✓ Lincoln National ✓
Groupe Bruxelles Lambert ✓ Inmobiliaria Colonial ✓ Linklogis ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
19SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
Liontrust Asset Management ✓ Nieuwe Steen ✓ Quilter ✓
Lloyds Banking Group ✓ Ninety One ✓ Rand Merchant Investment ✓
Logan Property ✓ NN ✓ Rathbone Brothers ✓
London Stock Exchange ✓ Nordea Bank ✓ Raven Property ✓
Londonmetric Property ✓ Northern Trust ✓ Raymond James Financial ✓
Longfor Properties ✓ Old Mutual ✓ Realty Income ✓
M & T Bank ✓ OneSavings Bank ✓ Regions Financial ✓
M&G ✓ OTP ✓ Remgro ✓
Manulife ✓ Paragon Banking ✓ Renhe ✓
Mapfre ✓ Partners ✓ Ronshine China ✓
MarketAxess ✓ Patrizia Immo ✓ Royal Bank of Canada ✓
Marsh & McLennan ✓ Peoples United Financial ✓ S&P Global ✓
Mercialys ✓ Pepkor ✓ Safestore ✓
Merlin Properties ✓ Pershing Square ✓ Sampo ✓
Metlife ✓ Phoenix ✓ Sanlam ✓
Mid-America Apartment ✓ PICC Insurance ✓ Sanne ✓
Communities
Plus500 ✓ Santam ✓
MMI ✓
PNC Bank ✓ Savills ✓
Moodys ✓
Poly Property ✓ SBI Life Insurance ✓
Morgan Stanley ✓
Poly Real Estate ✓ SBIC-Standard Bank Investment ✓
Munchener Ruckversicherungs-Ges ✓
Power Corporation Canada ✓ Charles Schwab ✓
NASDAQ ✓
Powerlong Real Estate ✓ SCOR ✓
National Bank Canada ✓
Principal Financial ✓ Scottish Mortgage Investment Trust ✓
NatWest Group ✓ ✓ ✓
Progressive ✓ Segro ✓
Navigator Global Investments ✓
ProLogis ✓ Shaftesbury ✓
NedBank ✓
Prudential ✓ Shanghai Lujiazui Finance & Trade ✓
New China Life Insurance ✓ Zone
Prudential Financial ✓
New World Development ✓ Shanghai Pudong Development
PSG ✓ ✓
Bank
Nexity ✓
Public Storage ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
20SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
Shenzhen Investment ✓ TBC Bank ✓ Yuexiu REIT ✓
Sichuan Languang Development ✓ Tetragon Financial ✓ Yuzhou Properties ✓
Signature Bank ✓ Times Property ✓ ZhongAn Online P & C Insurance ✓
Simon Property ✓ Tinkoff Credit System ✓ ✓ Zions Bancorporation ✓
Sino Land ✓ Torchmark ✓ Zurich Insurance ✓
Sino-Ocean ✓ Toronto Dominion Bank ✓ ✓ Health Care
Sirius Real Estate ✓ TP ICAP ✓ 3sBio ✓
Skandinaviska Enskilda Banken (SEB) ✓ ✓ ✓ Travelers ✓ Abbott Laboratories ✓
Societe Generale ✓ Truist Financial ✓ Abbvie ✓
SOHO China ✓ Tryg ✓ Abiomed ✓
St James's Place Capital ✓ UDR ✓ Adagene ✓
Standard Chartered ✓ ✓ Unite ✓ Adcock Ingram ✓
Standard Life ✓ US Bancorp ✓ Agfa-Gevaert ✓
State Bank of India ✓ Value Partners ✓ Agilent Technologies ✓
State Street ✓ Van Lanschot Kempen ✓ Alcon ✓
Stonegate Pub Co Financing ✓ ✓ Ventas ✓ Align Technology ✓
Storebrand ✓ Vonovia ✓ Almirall ✓
Sun Hung Kai & Co ✓ Vornado Realty Trust ✓ Ambu ✓
Sun Hung Kai Properties ✓ W. R. Berkley ✓ Amgen ✓
Sunac China ✓ Washington Real Estate Investment ✓ Antengene ✓
Trust
Sunlight REIT ✓ Anthem ✓
Wells Fargo ✓
SVB Financial Group ✓ Aspen Pharmaceutical ✓
Welltower ✓
Svenska Handelsbanken ✓ AstraZeneca ✓
Wendel Investissem ✓
Swedbank ✓ Baxter International ✓
Weyerhaeuser ✓
Swire Pacific ✓ Bayer ✓
Wharf ✓
Swiss Life ✓ Becton, Dickinson & Co ✓
Wharf Real Estate Investment ✓
Swiss Reinsurance Company ✓ BeiGene ✓
Workspace ✓
Synchrony Financial ✓ Beijing Tiantan Biological Products ✓
Worldwide Healthcare Trust ✓
T. Rowe Price ✓ Biocartis ✓
Yuexiu Property ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
21SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
Biogen ✓ DaVita ✓ Humana ✓
Biomerieux ✓ DBV Technologies ✓ Humanwell Healthcare ✓
Bio-Rad Laboratories ✓ Dechra Pharma ✓ Hutchison China MediTech ✓
Bio-Techne ✓ Dentsply Sirona ✓ IDEXX Laboratories ✓
Boston Scientific ✓ Dermapharm ✓ Illumina ✓
Brii Biosciences ✓ DexCom ✓ Incyte ✓
Bristol Myers Squibb ✓ Dis-Chem Pharmacies ✓ Indivior ✓
Cansino Biologics ✓ Divis Laboratories ✓ Innate Pharma ✓
Cardinal Health ✓ Dr Reddy's Laboratories ✓ Innovent Biologics ✓
Carl Zeiss Meditec ✓ Eckert & Ziegler ✓ Intai Technology ✓
CARsgen Therapeutics ✓ Edwards Lifesciences ✓ Intuitive Surgical ✓
Catalent ✓ Eurofins Scientific ✓ Ion Beam Applications ✓
Centene ✓ Evotec ✓ Jiangsu Kanion Pharmaceutical ✓
Center Laboratories ✓ Fagron ✓ Jinxin Fertility ✓
Cerner ✓ Gedeon Richter ✓ Jinyu Bio-Technology ✓
Charles River Laboratories ✓ Genmab ✓ Johnson & Johnson ✓
China Medical System ✓ Genscript Biotech ✓ Joinn Lab ✓
China National Medicines ✓ Genus ✓ Korian Medica ✓
China Resources Pharmaceutical ✓ Gerresheimer ✓ Kunming Pharmaceutical ✓
China Resources Phoenix Healthcare ✓ Getinge ✓ Laboratorios Farmaceuticos ✓
Cigna ✓ Gilead Sciences ✓ Laboratory Corporation of America ✓
Cipla ✓ GlaxoSmithKline ✓ Life Healthcare ✓
Coloplast ✓ GN Store Nord ✓ Lilly, Eli & Co ✓
Compu ✓ Grifols ✓ Lonza ✓
ConvaTec ✓ Guangzhou Baiyunshan Pharm-H ✓ McKesson ✓
Cooper Companies ✓ Hangzhou Tigermed Consulting ✓ Mediclinic International ✓
Corbion ✓ Henry Schein ✓ Medtronic ✓
CSPC Pharmaceutical ✓ Hikma Pharmaceuticals ✓ Merck & Co ✓
Danaher ✓ Hologic ✓ Mettler-Toledo International ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
22SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
Mitrha Pharmaceuticals ✓ Sinopharm ✓ Zhangzhou Pientzehuang ✓
Pharmaceutical
MorphoSys ✓ Smith & Nephew ✓
Zhejiang Hisun Pharmaceutical ✓
Netcare ✓ Spire Healthcare ✓
Zhejiang Huahai Pharmaceutical ✓
Novartis ✓ St.Shine Optical ✓
Zimmer Biomet ✓
Novo Nordisk ✓ Steris ✓
Zoetis ✓
Organon & Co ✓ Stryker ✓
Industrials
Oxford BioMedica ✓ Sun Pharmaceutical ✓
3M Company ✓
Peptidream ✓ Tasly Pharmaceutical ✓
A. O. Smith ✓
PerkinElmer ✓ Teleflex ✓
Abb ✓
Pfizer ✓ Thermo-Fisher ✓
ACS Actividades de Construccion y
Pharma Mar ✓ Top Glove Corporation Berhad ✓ ✓
Servicios
Pharmaron Beijing ✓ Topchoice Medical Investment ✓
Adani Ports and Special Economic ✓
Pharming ✓ TTY Biopharm ✓ Zone
PureTech Health ✓ UCB ✓ Aena ✓
Quest Diagnostics ✓ United Health ✓ Aeroports de Paris ✓
Quintiles ✓ United Laboratories ✓ Air France-KLM ✓
RedHill Biopharma ✓ Universal Health Services ✓ Airbus ✓
Regeneron Pharmaceuticals ✓ Universal Vision Biotechnology ✓ Alaska Air ✓
ResMed ✓ Valneva ✓ Alfa Laval ✓
Roche ✓ Venus MedTech HangZhou ✓ Alfen ✓
Sartorius Stedim Biotech ✓ Vertex Pharmaceuticals ✓ Allegion ✓
Shandong Weigao ✓ Viatris ✓ Alstom ✓
Shanghai Fosun Pharma ✓ Virbac ✓ Amadeus FiRe ✓
Shanghai Pharma ✓ Waters ✓ American Airlines ✓
Shinva Medical Instrument ✓ West Pharmaceutical Services ✓ Ametek ✓
Shop Apotheke Europe ✓ William Demant ✓ Anhui Expressway ✓
Siemens Healthineers ✓ WuXi AppTec ✓ Anhui Heli ✓
Sihuan Pharmaceutical ✓ Wuxi Biologics Cayman ✓ AP Moller-Maersk ✓
Sino Biopharmaceutical ✓ Zai Lab ✓ Arcadis ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
23SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
Ashok Leyland ✓ Canadian National Railway ✓ Cummins ✓
Ashtead Group ✓ Canadian Pacific Railway ✓ ✓ DCC ✓
Assa Abloy ✓ Capita ✓ Delta Air Lines ✓
Atlas Copco ✓ Carbone Lorraine ✓ Deutsche Lufthansa ✓
Autostrade per l'Italia ✓ Carrier Global ✓ Deutsche Post World Net ✓
B&M ✓ Caterpillar ✓ Diploma ✓
B&S ✓ CCS Supply Chain Management ✓ Dover ✓
Babcock ✓ Cewe ✓ DSV ✓
BAE Systems ✓ Changsha Zoomlion Heavy Industry ✓ Duerr ✓
Balfour Beatty ✓ Chemring ✓ Easyjet ✓
Barlow ✓ China Communications Construction ✓ Edenred ✓
Company
BayWa ✓ EDP Renovaveis ✓
China Eastern Airlines ✓
Befesa ✓ Eicher Motors ✓
China High-Speed Transmission ✓
Beijing Capital International Airport ✓ Elis Services ✓
China Liansu ✓
Beijing Enterprises ✓ Emerson Electric ✓
China Merchants ✓
Beneteau ✓ Equifax ✓
China Railway ✓
Bidvest ✓ Expeditors International of ✓
China State Construction Washington
Biffa ✓ ✓
International Holdings
Experian ✓
Bilfinger ✓
Cie de Saint-Gobain ✓
Fastenal ✓
Blue Label ✓
Cimc Enric ✓
FedEx ✓
BOC Aviation ✓
Cintas ✓
FirstGroup ✓
Bodycote ✓
Cintra ✓
Fluence Energy ✓
Bollore ✓
CITIC Pacific ✓
Fortune Brands Home & Security ✓
Bouygues ✓
Clarkson ✓
Fraport ✓
Bpost ✓
Copart ✓
GEA ✓
Bunzl ✓
Cosco Pacific ✓
Geberit ✓
Bureau Veritas ✓
CRRC ✓
Generac ✓
C.H. Robinson ✓
CSX ✓
General Dynamics ✓
CAE ✓
CTT Correios de Portugal ✓
Getlink ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
24SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
Go-Ahead ✓ JB Hunt Transport Services ✓ Norfolk Southern ✓
Goldwind ✓ Jenoptik ✓ Northrop Grumman ✓
Grafton ✓ Johnson Electric ✓ National Weather Service ✓
Grainger ✓ Jungheinrich ✓ Old Dominion Freight Line ✓
Haitian ✓ Kap Industrial ✓ Omnia ✓
Harbour Energy ✓ Kendrion ✓ Otis Worldwide ✓
Hays ✓ Kerry Logistics Network ✓ Paccar ✓
Hazama Ando ✓ Kingspan ✓ PARK24 ✓
Heijmans ✓ Kloeckner ✓ Paypoint ✓
Hensoldt ✓ Knorr-Bremse ✓ Pentair ✓
Hochtief ✓ Kone ✓ PostNL ✓
Hollysys Automation Technology ✓ Koninklijke Boskalis Westminster ✓ Prysmian ✓
Homeserve ✓ Koninklijke Philips ✓ Quanta Services ✓
Honeywell ✓ Krones ✓ Randstad ✓
Hubei Hongcheng ✓ Larsen & Toubro ✓ Rational ✓
Huntington Ingalls Industries ✓ Legrand ✓ Raubex ✓
Idex ✓ Lockheed Martin ✓ Redde ✓
IHS Markit ✓ Lonking ✓ Rentokil Initial ✓
Illinois Tool Works ✓ Masco ✓ Republic Services ✓
IMI ✓ McPhy Energy ✓ Reunert ✓
Indus Holding ✓ Meggitt ✓ Rexel ✓
Ingersoll-Rand ✓ Melrose Industries ✓ Rheinmetall ✓
International Consolidated Airlines ✓ Metso Outotec ✓ Robert Half ✓
Group
Mitie ✓ Rockwell Automation ✓
Intertek ✓
Morgan Advanced Materials ✓ Rollins ✓
Intertrust ✓
Morgan Sindall ✓ Rolls-Royce ✓
Ip ✓
Mota-Engil ✓ Roper Technologies ✓
Irish Continental ✓
MTR ✓ Rotork ✓
IWG ✓
Murray-Roberts ✓ Royal Mail ✓
Jacobs Engineering ✓
National Express ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
25SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
Rps ✓ Spie ✓ Waste Management ✓
Safran ✓ Spirax-Sarco Engineering ✓ Weichai Power ✓
Sandvik ✓ Stabilus ✓ Weir ✓
Sanki Engineering ✓ Stanley Black & Decker ✓ Westinghouse Air Brake ✓
Technologies
Sany Heavy ✓ Taikisha ✓
Wizz Air ✓
Schneider Electric ✓ ✓ ✓ Teledyne Technologies ✓
Wolong Electric ✓
Serco ✓ Teleperformance ✓
Wolseley ✓
SGL Carbon ✓ Textron ✓
Xinyi Solar ✓
Societe Generale de Surveillance ✓ Thales ✓
Xylem ✓
Shanghai Industrial ✓ Tomra Systems ✓
YTO Express ✓
Shanghai International Airport ✓ Trainline ✓
Yuexiu Transport Infrastructure ✓
Shanghai International Port ✓ Transdigm ✓
Zhejiang Expressway ✓
Shanks ✓ Travis Perkins ✓
Zhengzhou Yutong Bus ✓
Shenzhen Expressway ✓ Ultra Electronics ✓
Zhuzhou CRRC Times Electric ✓
Shenzhen International Holdings ✓ Union Pacific ✓
ZTO Express ✓
Shun Tak Holdings ✓ United Continental ✓
Information Technology
Siemens ✓ United Parcel Service ✓
Accenture ✓
SIF Holding ✓ United Rentals ✓
Activision Blizzard ✓ ✓
Sinmag Equipment ✓ United Technologies ✓
Adobe Systems ✓
SITC International ✓ ✓ Vallourec ✓
Advanced Ceramic ✓
Sixt ✓ Valmet ✓
Advanced Micro Devices ✓
Skansa ✓ Varta ✓
Aihuishou ✓ ✓
SKF ✓ Verisk Analytics ✓
Aixtron ✓
Smiths Group ✓ Vestas Wind Systems ✓
Akamai Technologies ✓
Snap-on ✓ Vesuvius ✓
Akka Technologies ✓
SNC-Lavalin ✓ Vinci ✓
Alten ✓
Societe BIC ✓ Volution ✓
Amdocs ✓
Southwest Airlines ✓ Volvo ✓
Amphenol ✓
Speedy Hire ✓ Wacker Neuson ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
26SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
Analog Devices ✓ CGI ✓ FDM ✓
Ansys ✓ Chen Full International ✓ Fortinet ✓
Apple ✓ Chinasoft International ✓ Fortive ✓
Applied Materials ✓ Cisco Systems ✓ Gartner ✓
Arista Networks ✓ Citrix Systems ✓ GCL-Poly ✓
ASM International ✓ CM ✓ GDS ✓
ASM Pacific Technology ✓ Cognizant Technology Solutions ✓ GFT Technologies ✓
Aspeed Technology ✓ Constellation Software ✓ Giga Solar Materials ✓
Atoss Software ✓ Coretronic Corporation ✓ Global Payments ✓
AU Optronics ✓ ✓ CRSC ✓ Globalwafers ✓
Aubay ✓ Dark Trace ✓ Gooch & Housego ✓
Auras Technology ✓ Dassault Systemes ✓ Google ✓
Auto Trader ✓ Datatec ✓ Halma ✓
Autodesk ✓ Digital China ✓ HCL Technologies ✓
Autohome ✓ Disco ✓ Hewlett Packard ✓
Automatic Data Processing ✓ DiscoverIE ✓ Hewlette Packard Enterprises ✓
Avast ✓ Dolby Laboratories ✓ Hexagon ✓
Aveva ✓ DXC Technology ✓ Hong Kong Television Network ✓
Baidu ✓ E Ink ✓ Hua Hong Semiconductor ✓
Baozun ✓ Ebay ✓ Hypoport ✓
Barco ✓ Electrocomponents ✓ IBM ✓
Bechtle ✓ Electronic Arts ✓ Indra Sistemas ✓
Broadcom ✓ eMory Technology ✓ Infineon ✓
Broadridge Financial Solutions ✓ EPAM Systems ✓ Infosys ✓
BYD Electronic ✓ Equinix ✓ InPost ✓
Cadence Designs ✓ Ericsson ✓ Intel ✓
Cancom IT Systeme ✓ Evs Broadcast Equipment ✓ Intuit Inc ✓
Cap Gemini ✓ F5 Networks ✓ IPG Photonics ✓
CDW ✓ Facebook ✓ Jack Henry & Associates ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
27SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
Jarllytec ✓ Ming Yuan Cloud ✓ Renewable Energy ✓
Jiangsu Changjiang Electronics ✓ Monolithic Power Systems ✓ Renishaw ✓
Technology
Motorola Solutions ✓ RM ✓
Juniper Networks ✓
Naver ✓ S&T ✓
Kainos ✓
Nedap ✓ Sage ✓
Kauaishou ✓
Nemetschek ✓ Salesforce ✓
Keysight Technologies ✓
Neopost ✓ Samsung Electronics ✓
Kingboard Chemical ✓
NetApp ✓ SAP ✓
Kingsoft ✓
Netcompany ✓ Scout24 ✓
KLA ✓
NetDragon Websoft ✓ Sea ✓
L3 Harris ✓
Network International ✓ Seagate Technology ✓
Lam Research ✓
Nokia ✓ Secunet Security ✓
LandMark Optoelectronics ✓
Nordic Semiconductor ✓ Semiconductor Manufacturing ✓
Leidos ✓
Nos ✓ Senao Networks ✓
Lenovo ✓
NXP Semiconductors ✓ ServiceNow ✓
Logitech ✓
Open Text ✓ SES ✓
Longi Green Energy Technology ✓
Oracle ✓ Siltronic ✓
LPKF Laser & Electronics ✓
Oxford Metrics ✓ Simplo Technology ✓
LuxNet ✓
Parade Technologies ✓ Skyworks ✓
M31 Technology ✓
PAX Technology ✓ Softcat ✓
MACOM Technology Solutions ✓
Paychex ✓ Software ✓
MasterCard ✓
Paycom Software ✓ Soitec ✓
Match ✓
Paypal ✓ Solaredge ✓
Meituan Dianping ✓
Playtech ✓ Solutions 30 ✓
Melexis ✓
PTC ✓ Sopra ✓
Micro Focus ✓
PVA Tepla ✓ Spectris ✓
Microchip Technology ✓
Qorvo ✓ Spirent ✓
Micron Technology ✓
Qualcomm ✓ STMicroelectronics ✓
Microsoft ✓
Razer ✓ Suse ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
28SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
Symantec ✓ Yongyou Network Technology ✓ BASF ✓
Synopsys ✓ Zebra Technologies ✓ Bekaert ✓
Taiwan Semiconductor ✓ Zendesk ✓ BHP Billiton ✓
Taiwan Union Technology ✓ Zscaler ✓ BHP ✓ ✓
Take-Two Interactive Software ✓ ZTE ✓ Billerudkorsnas ✓
Tata Consultancy Services ✓ Materials Boliden ✓
Tbea ✓ AECI ✓ CCL Industries ✓
TE Connectivity ✓ African Rainbow Minerals ✓ Celanese ✓
TeamViewer ✓ Agnico Eagle Mines ✓ Centamin Egypt ✓
Tietoevry ✓ Air Liquide ✓ CF Industries ✓
Travelsky ✓ Air Products & Chemicals ✓ China Hongqiao ✓
Trimble ✓ Akzo Nobel ✓ China Jushi ✓
Trustpilot ✓ Albemarle ✓ China Oriental ✓
TSMC ✓ Altri ✓ China Resource Cement ✓
Tyler Technologies ✓ Aluminum Corporation of China ✓ Christian Hansen ✓
Ubisoft Entertainment ✓ Amcor ✓ Corticeira Amorim ✓
United Internet ✓ AMG Advanced Metallurgical ✓ Crest Nicholson ✓
Vanguard International ✓ Anglo American Platinum ✓ CRH ✓
Semiconductor
Anglo American ✓ Croda International ✓
Visa ✓
AngloGold Ashanti ✓ Daimler Truck ✓
Vtech ✓
Antofagasta ✓ Dongyue ✓
Weibo ✓
Aperam ✓ Dow Chemical ✓
Weimob ✓
Arconic ✓ DS Smith ✓ ✓
Western Digital ✓
Arkema ✓ DSM ✓
Win Semiconductors ✓
Asian Paints ✓ Du Pont ✓
Wipro ✓
Aurubis ✓ Eastman ✓
Worldline ✓
Avery Dennison ✓ Ecolab ✓
Wuhan Jingce Electronic ✓
Ball ✓ Elementis ✓
Xaar ✓
Baoshan Iron & Steel ✓ Eramet ✓
Xilinx ✓
Barrick Gold ✓ Essentra ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
29SUSTAINABLE INVESTMENT REPORT – FIRST QUARTER 2022
Company E S G Company E S G Company E S G
Ferrexpo ✓ JSW Steel ✓ Sealed Air ✓
First Quantum ✓ K+S ✓ Semapa ✓
FMC ✓ Kinross Gold ✓ Shandong Gold Mining ✓
Fosun International ✓ Kureha ✓ Shandong Hualu Hengsheng ✓
Chemical
Franco-Nevada ✓ Lafargeholcim ✓
Shandong Nanshan Aluminum ✓
Freeport-McMoran ✓ Lanxess ✓
Sherwin-Williams ✓
Fresnillo ✓ LyondellBasell ✓
Shougang Fushan Resources ✓
Fuchs Petrolub ✓ Marshalls ✓
Shree Cement ✓
Gerdau ✓ Martin Marietta ✓
Sibanye Gold ✓
Givaudan ✓ Mondi ✓ ✓
Sika ✓
Glencore ✓ Mosaic Company ✓
Silver Wheaton ✓
Gold Fields ✓ Nine Dragons ✓
Smurfit Kappa ✓
Grasim Industries ✓ Norsk Hydro ✓
Solvay ✓
Harmony Gold Mining ✓ Northam Platinum ✓
SSAB ✓
Hill & Smith ✓ Novozymes ✓
Sto ✓
Hindalco Industries ✓ Nucor ✓
Stora Enso ✓ ✓
Hochschild Mining ✓ Outokumpu ✓
Suzano ✓
Holmen ✓ Packaging America ✓
Synthomer ✓
Hornbach ✓ Pan African Resources ✓
Teck Resources ✓
Huabao International ✓ Philips Lighting ✓
Ternium ✓
Ibstock ✓ PPG Industries ✓
Tessenderlo ✓
IMCD ✓ Pretoria Portland Cement ✓
The Navigator Company ✓
Imerys ✓ Recticel ✓
ThyssenKrupp ✓
Impala Platinum ✓ RHI Magnesita ✓
Trane Technologies ✓
International Paper ✓ ✓ Rio Tinto ✓ ✓ ✓
Tyman ✓
Jiangsu Yangong Chemical ✓ Rockwool International ✓
Ultratech Cement ✓
Jiangxi Copper ✓ Royal Bam ✓
Umicore ✓
Jiangxi Ganfeng Lithium ✓ Salzgitter ✓
UPL ✓
Johnson Matthey ✓ Sappi ✓
UPM ✓ ✓
Jost Werke ✓ Schnitzer Steel Industries ✓
Source: Schroders, 31 March 2022
The companies and sectors mentioned herein are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
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