Cazenove Capital sets out a comprehensive climate strategy in its pioneering Climate Transition Action Plan
Cazenove Capital, the leading wealth management arm of Schroders, published its Climate Transition Action Plan today. We are one of the first UK wealth managers to provide a comprehensive and detailed plan for achieving our long-term climate goals. It reflects our distinctive investment approach, encompassing the use of third-party funds as well as direct investment in equities bonds and alternatives.
The plan sets out in detail how we will align all our discretionary assets under management to net zero by 2050 or sooner.* It also highlights the growing investment risks of climate change as well as the opportunities that may arise from the transition.
Catherine Hampton, Sustainable Investment Lead, Cazenove Capital commented:
"We want to transition our clients’ investments towards net zero because we believe that the world will significantly change over the next 30 years. Not doing so would likely mean losing out on opportunities and exposing our clients to greater risk."
The plan is consistent with the net zero commitment of our parent-company Schroders, a founding signatory to the Net Zero Asset Managers (NZAM) initiative. We will report on our progress against the Climate Transition Action Plan on an annual basis.
Mary-Anne Daly, Chief Executive Officer, Cazenove Capital commented:
"We have a responsibility to position client portfolios for the future. Understanding and addressing climate risk is a fundamental part of this – and indeed our fiduciary duty. We believe that the new climate change strategy that we are announcing today will be key to delivering successful long-term performance for clients.”
Caspar Rock, Chief Investment Officer, Cazenove Capital commented:
“The transition to a lower carbon global economy will impact both our macro-outlook and our bottom-up fundamental company analysis. To ignore this transition is to ignore seismic shifts in the way the global economy operates, ultimately affecting the ability to protect and grow our clients’ wealth.”
Using our influence
Cazenove Capital will engage with asset managers and companies to support their decarbonisation goals.
Currently, approximately 60% of the third-party managers we work with have made a net zero commitment at the corporate level. However, a smaller proportion have actually implemented these commitments into their underlying funds. Our aim is to see the number of firms with a formal net zero commitment reach 100% in time. Just as importantly, we want to see demonstrable progress on the reflection of these commitments at the strategy level.
Innovating for a sustainable future
Cazenove Capital is seeing a growing desire among its clients, including private clients, family offices and charities, to decarbonise their portfolios. In response, we are committed to expanding the range of climate-focused products in both listed and private markets.
We currently manage over £2 billion in strategies which have a specific allocation to impactful climate solutions. In our sustainable and ethical strategies, which avoid areas of environmental or social harm, we manage over £8.7 billion as at October 2023.
*This does not include legacy assets. When we take on new clients, it is common for their existing assets to be transferred in specie to us. These ‘legacy assets’ may be misaligned with our net zero commitment and will be managed to be sold down over time as the portfolio is re-organised. However, due to tax liabilities, market movements and other factors, this process may occur over an extended period of time.
For further information, please contact:
Head of Marketing and Communications, Schroders Wealth Management
+44 20 7658 3431
Marketing Manager, Cazenove Capital
+44 20 7658 1615
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 and Switzerland.
Schroders Wealth Management, including Cazenove Capital, has £102.6 billion in assets under management globally across all Wealth Management offices (including Benchmark Capital, part of wealth management) as at 30 June 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.
Fund performance is shown net of underlying fund fees and trading costs. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.
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.