Cazenove Capital’s sustainable funds partner with climate justice and environmental charities
Conservation of the ocean, protecting biodiversity, ensuring climate justice
Cazenove Capital, the high-net-worth wealth management business of Schroders, has partnered with three environmental charities, as part of the strategy to further the positive impact of our flagship sustainable funds; the Sustainable Balanced and Sustainable Growth Funds for private clients, and the Sustainable Multi-Asset Fund for Charities. Collectively, these sustainable funds manage over £3 billion of assets on behalf of our clients1.
Our sustainable funds have a carbon footprint which is materially lower than that of the global equity benchmark2 and collectively the investments were estimated to have avoided 348,306 tonnes of emissions being released into the atmosphere in 2023, which is the equivalent of the carbon absorbed from growing over 5.7 million trees for 10 years3.
Lyn Tomlinson, Head of Impact, Cazenove Capital commented:
"A key focus of our sustainable funds is to contribute towards initiatives that provide solutions to areas of environmental need. However, there are many areas of environmental need which are more difficult to finance at scale through investments in listed markets. Cazenove Capital has therefore, partnered with three charities to directly support three core underfunded areas: conservation of the ocean, protecting biodiversity and ensuring climate justice.
The annual amount donated to the charities will be linked to the estimated CO2e emissions4 collectively generated by the funds’ reporting equities. Importantly, all of the costs are covered by Cazenove Capital and none are passed onto investors.
This means that, as more investors adopt a sustainable approach and the assets in the funds grow, our donations increase, thus financially aligning us with our long-term ambition to reach net zero, as outlined in our Climate Transition Action Plan."
The oceans
The sea is the planet’s largest carbon sink. Oceans have captured 90% of the excess heat generated by emissions to date5. They help to generate around half of the oxygen we need and absorb approximately 25% of all carbon dioxide in the atmosphere6. Despite their importance, they are grossly underfunded with less than 1% of global philanthropic giving going to protect the oceans7.
We have partnered with 10% for the Oceans, where we will fund work to support existing and new Marine Protected Areas (MPA) and raise public awareness of the importance of the oceans in our fight against climate breakdown.
Jasper Smith, Founder of Arksen and 10% for the Ocean commented:
"As the Founder of 10% for the Ocean, I am honoured to collaborate with Cazenove Capital in our shared commitment to safeguarding the health of our planet’s oceans.
To launch our collaboration, we have chosen to focus on the UK, particularly the South Arran MPA. With Cazenove Capital’s support, we will globally distribute a film to raise awareness of the critical role the oceans play our fight against climate breakdown.”
Biodiversity
Biodiversity forms the web of life that we depend on for so many things – food, water, medicine, a stable climate and economic growth, among others. Over half of global GDP is dependent on nature and more than one billion people rely on forests for their livelihoods8.
Climate change is the primary driver of biodiversity loss and biodiversity is part of the solution to climate breakdown. Both are interlinked. Despite biodiverse eco-systems being estimated to provide 30% of climate mitigation solutions, only 2% of international climate financing goes towards restoring biodiversity9.
We have partnered with Fauna & Flora, where we will focus on protecting populations of important species, while ensuring communities can benefit from diversified income streams and reduced human-wildlife conflict. Our initial chosen project will focus on restoration of the remaining chimpanzee corridors in Uganda.
Rogers Niwamanya, Fauna & Flora’s Landscape Manager, Albertine Rift, Uganda:
“When this project was launched a decade ago, it was, first and foremost, a chimpanzee conservation initiative. Today, whilst chimpanzees remain a flagship, the project’s impact is reaching much further. The area is crucially important in helping to build resilience to the impacts of a changing climate, through the protection and restoration of biodiversity.
Cazenove Capital’s funding will enable us to continue building and expanding this work, achieving positive outcomes for people, nature and the climate.”
Climate justice
Climate justice means finding solutions to the climate crisis that not only reduce emissions or protect the natural world, but that do so in a way which creates a fairer, and more equal world in the process.
There is a real risk that, as the developed countries aim to scale clean energy, the global south is left behind. Currently, 77% of people in the world who remain without energy access live in Sub-Saharan Africa - this is up from 30% in 201010. They are estimated to make up 90% of the world’s population without access to electricity by 203011.
We are partnering with Acumen, whose Hardest-to-Reach initiative focuses on addressing the clean energy needs of underserved communities often excluded from the green energy transition. The partnership empowers Acumen to support or invest in enterprises that provide first-time clean energy access to hard-to-reach and left-behind groups.
Sandra Halilovic, Head of Acumen's Hardest-to-Reach Development Facility, commented:
"The partnership with Cazenove Capital will support Acumen's Hardest-to-Reach energy access initiative, aimed at providing clean energy to 72 million people in underserved areas of Sub-Saharan Africa. Through contributions from partners such as Cazenove Capital, we are able to support companies that bridge the energy access gap, ensuring the clean energy transition is equitable and inclusive, particularly for those most at risk of being left behind."
ENDS
1 November 2024
2 See impact reference at the bottom of this release. Data pulled from our Annual sustainability and impact reports 2023 – Sustainable Investment – Cazenove Capital
3 See impact reference at the bottom of this release. Data pulled from our Annual sustainability and impact reports 2023 – Sustainable Investment – Cazenove Capital
4 COe2 emissions: Carbon dioxide emissions are those stemming from the burning of fossil fuels and the manufacture of cement
6 The ocean – the world’s greatest ally against climate change | United Nations
7 Arksen: Founding 10% for The Oceans
8 The business case for nature (worldbank.org)
9 Climate-Biodiversity Convergence_AFD.pdf (unfccc.int)
10 Driving accountability: Access to energy | World Benchmarking Alliance
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 £119.5 billion in assets under management globally across all Wealth Management offices (including Benchmark Capital, part of wealth management) as at 30 June 2024.
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.
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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.
Impact data
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.