Real estate business

Schroders releases net zero trajectory for £17bn property business | News

Schroder Real Estate has presented its zero-carbon plan for its real estate portfolio as the company seeks to achieve targets in line with the United Nations Sustainable Development Goals.

The £17.4bn (€20.1bn) property fund manager, who became one of the founding signatories of the Net Zero Asset Managers Initiative in December 2020, has released its trajectory to reach the net zero by 2050.

Schroders, which invests both directly through real estate funds and indirectly through its equity partners division, said the published trajectory “aims to set and achieve the objectives required under the Paris on climate change to limit global warming to 1.5°C and achieve net-zero carbon emissions”.

He said intermediate net-zero milestones – expected to be in 2025 and 2030 – are being established to ensure assets are aligned with the level of carbon reduction required to meet the Paris Agreement.

For direct real estate investments, the focus will be on reducing energy demand, increasing energy efficiency and identifying opportunities for renewable energy generation, “taking into account the compensation of any remaining carbon.

The plan is to ensure that global low-carbon regulatory requirements are met and that climate risk and resilience considerations are included in the trajectory.

“This will cover the full spectrum of a building’s life cycle, including day-to-day operational carbon emissions, as well as those created during refurbishment and development.”

For indirect investments, Schroders plans to engage with externally managed fund managers and joint venture partners to ensure they are also adapting their approaches to achieve net zero carbon goals.

Sophie van Oosterom, Global Head of Real Estate at Schroders, said: “ESG, and specifically carbon responsibility, is an important and growing priority for our investors. It is important for us to provide transparency to all our stakeholders about our strategy and our actions. Demonstrating the carbon profile and the evolution of our investments is at the heart of this approach.

“The benefits of a net zero carbon approach are, of course, broader than the positive outcomes for our stakeholders. They are essential to supporting the transition to a low carbon society and ultimately a future more sustainable to share for all.

Charlotte Jacques, Head of Sustainability and Impact Investing at Schroder Real Estate, said: “We believe our responsibility to our clients includes protecting them from the impacts of financial and non-financial risks. We also recognize our broader responsibilities to society and the planet. We must therefore respond to the climate priority by reducing our emissions and going to net zero.

“Schroder Real Estate’s commitment to net zero carbon by 2050 is a natural next step in our energy and carbon agenda.

“Our activities cover the entire life cycle of the building. We seek to continually improve the sustainability credentials of our investments through the active management of our assets, and strive to reduce energy consumption and greenhouse gas emissions from our owner-controlled operations for more than five years.

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