Marketplace
As a fund manager our investment decisions, whether in property, equity or fixed income, will have a much greater impact on society and the environment than our direct operational activities, as the cumulative impacts of the companies and buildings in which we invest will be far greater than our own. This section will outline what actions we have taken to minimise these indirect impacts.
Schroders' primary investment objective is to achieve optimal financial returns for our clients within agreed parameters and constraints. Providing that this objective is not compromised in the process we believe that it is also possible to develop a framework that, in the interests of our clients, allows a broader range of considerations, including environmental and social issues, to be taken into account when selecting investments. Indeed the idea that good quality companies, operating at an environmentally and socially sustainable level are more likely to survive and deliver long-term shareholder value suggests that an analysis and understanding of non-financial criteria should actually offer additional assistance in identifying long term winners.
Our investment process incorporates research into the corporate responsibility performance of companies and Schroders will engage with companies where the scope of environmental, social and ethical codes falls short of acceptable standards. Our Socially Responsible Investment (SRI) policy sets out how we take account of social, ethical and environmental issues in the investment process.
Download SRI policy (pdf, 88KB).
Workplace
Schroders employs over 2,500 people in 26 countries. We recognise the importance of making Schroders an employer of choice. We ensure that employee policies and practices reflect good practice within each of the countries where we operate.
The Group has a process for communicating with employees worldwide, on a day-to-day basis via email and the Group's intranet site and on a regular basis via an in-house magazine. The Group also ensures that any information given to the market is disseminated internally.
We provide opportunities for employees to voice concerns about behaviours or decisions that they perceive to be unethical through our internal whistleblowing process. We promote the importance of high ethical standards in our employees. We regulate and monitor personal securities trading by employees to ensure it does not lead to conflicts of interest and employees are not permitted to solicit or accept any inducements which are likely to conflict with their duties to clients. Training is provided in relation to these issues and in relation to money laundering, terrorist finance and data protection.
As part of our equal opportunities policy we provide annual training to managers on the latest employment legislation and their responsibilities towards all employees. In addition to this, the Company's UK policies on parental leave and flexible working both provide benefits well in excess of the statutory minimum.
Community
Employees are encouraged to participate in the community and in civic and charitable causes. Such involvement is seen not only to be of use to the community but also as a means of increasing employee awareness and assisting in their own development. Schroders' charitable giving is focused on employee choice.
UK employees are encouraged to make charitable donations through the payroll system and at the end of 2006 19 per cent were participating in this scheme. In 2006 employees made charitable donations totalling £257,000. Schroders matches employee contributions up to certain limits. Employees also arrange fundraising events in support of charitable causes. In 2006 Schroders donated approximately £616,000 globally to various charitable causes.
Employees are encouraged to spend time working in the community and from June 2005 every employee has been given the opportunity to take up to 15 hours paid leave per year to provide volunteer services to the community. A number of employees regularly volunteer their time and work with public bodies, community organisations, schools and universities. During November and December 2005, 20 volunteers from Schroders travelled to Sri Lanka to take part in house building projects and in September 2006, 20 employees travelled to South Africa to help build houses for children orphaned by AIDS. Both projects were co-ordinated by Habitat for Humanity. A similar volunteering event is planned during 2006 in South Africa.
Environment
Although Schroders' activities as part of the financial services sector have minimal direct environmental impact, the Group promotes energy efficiency and avoidance of waste throughout its operations, including appropriate conservation measures in the design and use of buildings and equipment, recycling of materials and reduction in use of paper through office automation. In 2006 92 per cent of waste was recycled or reused.
The Corporation of London has recognised Schroders' efforts in effective waste management by giving Schroders a platinum rating in its Clean City Awards scheme for the second consecutive year. Additionally we, through the investment management process, advise companies in which we invest on socially responsible investment policies, which in 2005 were extended to cover the pan-European market. The policy embodies the requirements of the ABI Disclosure Guidelines on Socially Responsible Investment and endorses the Voluntary Code on Shareholders Activism issued by the Institutional Shareholders Committee.
