Cazenove Capital publishes 2023 Sustainability and Impact Reports
The Sustainability and Impact Reports for Cazenove Capital's flagship sustainable funds evaluate the positive impact each fund has made on people and planet over 2023.
Cazenove Capital, one of the UK’s leading wealth management businesses and part of Schroders, has today published its latest Sustainability and Impact Reports for its three flagship sustainable funds. The reports, now in their fourth year, analyse the estimated impact achieved over 2023 for the following – The Sustainable Multi-Asset Fund for charities, The Sustainable Growth Fund and Sustainable Balanced Fund both of which are for private individuals.
This comes as Cazenove Capital’s collective assets in ethically screened, sustainable and impact client mandates*, including the £2.3bn invested across these 3 sustainable funds, surpasses £10 billion.
The reports illustrate how each of the funds are achieving their objectives, to generate competitive financial returns alongside a positive impact on people and the planet. Each report contains detailed insights into the sustainability characteristics of the portfolio, such as the alignment to a net zero scenario, and case studies on the real-world impact created by the investments and company engagements.
We’ve estimated the aggregated impact achieved across our three flagship sustainable funds:
- Has reached an estimated 185,000 people, through the provision of vital services such as social housing, education, and financial inclusion.1
- Has avoided an estimated 348,000 tonnes of carbon, through creation of clean energy and water treatment.1 Which is the equivalent carbon storage capacity of growing 5.7 million trees for 10 years.2
Key highlights across the three sustainable flagship funds include:
- Each of the funds have financially outperformed, compared to the relevant peer group indices, since their inception.3
- 100% of the investments act to avoid harm.
- Over a quarter of the funds are materially contributing to the UN’s sustainable development goals (SDGs).4
- 2/3rds of the holdings have been actively engaged with over 2023.5 We are committed to using our influence to push for positive progress and have engaged directly with companies we invest in and with fund managers whose funds we invest through.
- 45% of the Fund's investment team are female and 35% of the Fund's investment team are from diverse social backgrounds.6
- Our Impact and Sustainability Reporting has been independently verified by BlueMark.7
You can view each of the reports here
Lyn Tomlinson, Head of Impact Solutions, Cazenove Capital commented:
"At the time of publishing our 2023 Sustainability and Impact Reports, we have seen the hottest March on record. We have just 68 months to halve global emissions8 if we are to limit temperature rises to a level which avoids the most negative impacts of climate breakdown.
As we approach the second half of this decade of action, it is more important than ever that investors allocate capital to investments that address environmental and social challenges. Our reports highlight the efforts we are making to avoid harm and to allocate capital to improve lives and ultimately protect our planet.
We believe that who allocates capital matters, and as a result, this year, we are delighted to report the racial, social and gender diversity of the teams managing our Sustainable funds.”
Emilie Shaw, Sustainable Solutions Lead, Cazenove Capital commented:
“Our goal is to bring together investors and managers in a collaborative approach to drive climate and social action, and deliver profit with purpose. With a shared vision, radical transparency and active client participation, we believe we can contribute to positive change.”
Last year Cazenove Capital launched its Climate Transition Action Plan, which outlines how we intend to transition to net zero by 2050 or sooner. As part of this strategy, and as a significant investor in third-party funds, Cazenove Capital has been paving the way in engaging with asset managers to ensure that we’re all moving towards best practise in sustainable investment. We’ll soon be releasing our Engagement Report which will illustrate the progress made in engaging with those organisations owned, driving positive change and net zero goals.
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*Ethically screened mandates include client portfolios with exclusions on direct investment in areas of significant environmental or social harm, such as tobacco stocks. Sustainable and Impact mandates have specific sustainability and impact objectives. Includes assets in Cazenove Capitals client portfolios across the UK and Channel Islands as at 11th April 2024.
1 Impact metric data provided, in part by Net Purpose. Data shown reflects the notional aligned impact calculated for the positions held in the fund as at the 31 December 2023, based on the value of assets as at the 31 December 2023. The positive impact is generated by the companies that we invest in and the users of their products and services, like the organisations that have helped improve access to healthcare, finance and education and the people who choose to switch to renewable energy. Investors in the fund are aligned with these impacts by investing in a company’s activities generally but do not finance any activity, product or service that a company may undertake or make available. We use the most up to date underlying impact data available as reported by the companies and fund managers in which we invest to estimate these impact metrics and apportion it according to our holding size. To illustrate the aggregated impact, we translate the impact into more meaningful comparisons using the following conversion ratios: the average UK home uses 2,700KWh of electricity in a year (Source: Ofgem). Where data is not available, we have not included it, with the expectation that our results are conservative. Impact metrics provided, in part by Net Purpose.
2 Equivalencies provided by the Environmental Protection Agency (EPA).
3 Performance in GBP based on net fund returns compared to the relevant ARC index, SUTL Cazenove Charity Sustainable Multi-Asset Fund and the SUTL Cazenove Sustainable Growth Fund compared to ARC Steady Growth PCI GBP index and SUTL Cazenove Sustainable Balanced Fund compared to ARC Balanced PCI GBP index. Past performance is not a guide to future returns.
4 Based on Cazenove Capital's assessment using the Impact Management Projects (IMP) ABC framework.
5 Engagement across the holdings based on weight in the Funds as at 31 December 2023.
6 Socio-economic background refers to the occupation of the employee’s parent, where that parent was the households primary earner.
7 Bluemark verification completed in March 2023.
8 To half emissions by 2030 as noted by Intergovernmental Panel on Climate Change (IPCC).
For further information, please contact:
Estelle Bibby
Head of Marketing and Communications
+44 20 7658 3431
estelle.bibby@cazenovecapital.com
Laura Keeble
Marketing Manager
+44 20 7658 1615
laura.keeble@cazenovecapital.com
Note to Editors
About Wealth Management
As a long-established wealth manager with an absolute focus on preserving and growing our clients’ wealth, what matters most to our clients, matters most to us.
Private individuals, family offices, trusts, institutions and charities all rely on us to provide them with bespoke wealth management services. Skilled in investment management, wealth planning and banking services – we also offer discretionary fund management to external advisers and their clients, and we are the largest charity fund manager by assets under management in the UK.
For two centuries we have helped clients look forward to a successful future. With each client, we plan for the long term and invest the time to gain a detailed understanding of their unique circumstances, goals and ambitions. The majority of our clients, and many of our own people, work with us for years, decades and even generations. This creates relationships of unusual depth.
Our experience of navigating complex markets and adapting to change helps us balance risk and reward. The investment expertise we call upon as part of Schroders, a truly global asset manager, combined with our long-standing experience of advising clients, is what sets us apart.
Wealth Management office locations
Cazenove Capital: UK and Channel Islands. Schroders Wealth Management: Singapore, Hong Kong and Switzerland.
Schroders Wealth Management, including Cazenove Capital, has £110.2 billion in assets under management globally across all Wealth Management offices (including Benchmark Capital, part of wealth management) as at 31 December 2023.
Further information about Cazenove Capital can be found at www.cazenovecapital.com.
Issued by Cazenove Capital which is part of the Schroders Group and is a trading name of Schroder & Co. Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
When investing, your capital is at risk.
The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested. Cazenove Capital is a trading name of Schroder & Co. Limited. Registered Office at 1 London Wall Place, London EC2Y 5AU. Registered 2280926 England. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. For your security, communications may be recorded or monitored.