By Emma Shone | Thu 18 February 2021

Schroder Real Estate has published its pathway to achieving net zero carbon by 2050.

The business said the pathway will build on its “integrated approach” to sustainability in its investment process.

The pathway will set targets required as part of the Paris Agreement treaty on climate change to limit global warming to 1.5 degrees Celsius and achieve net zero carbon emissions.

Schroders said its focus for direct real estate investments will be on reducing energy demand, increase energy efficiency and identifying opportunities for renewable energy generation.

It said it would ensure global low carbon requirements were met and that considerations of climate risk and resilience would be included in the pathway.

For indirect investments Schroders said it would engage with managers of externally managed funds and JV partners to ensure they have also adopted the measures needed to hit the net zero carbon targets.

It added interim net zero milestones will be established and are expected to be scheduled for 2025 and 2030.

“Schroder Real Estate’s overarching ‘Real Estate with Impact’ business strategy is focused on the four pillars of impact: People, Planet, Place and Prosperity. It is aligned with the United Nations’ Sustainable Development Goals and seeks to address social and environmental impacts across portfolios,” said Sophie van Oosterom, Schroders’ global head of real estate.

“ESG and specifically carbon responsibility is a significant and growing priority for our investors. It is important for us to provide transparency to all our stakeholders about our strategy and actions. Demonstrating the carbon profile and progress of our investments is core to this.”

Charlotte Jacques, the investor’s head of sustainability and impact investment, added: “We believe our responsibility to our clients includes protecting them from the impacts of financial and non-financial risks. We also recognise our broader responsibilities to society and the planet. We therefore need to address the climate priority by reducing our emissions and transitioning to net zero.

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