Senior investors have specific KPIs relating to ESG integration, ensuring ESG implementation remains a key priority for our analysts and fund managers, as well as our Sustainable Investment team.
In 2017, Sustainability was identified as a Strategic Capability for the firm. As a result of this there is additional oversight of our activities by our Global Head of Product and Solutions, who is a Group Management Committee (GMC) member, on a monthly basis. There are specific objectives around the development of our activities in this area.
Throughout the year we have provided updates to the GMC on progress and the three-year plan for Sustainability. This group is Schroder's senior leadership team and membership includes the two executive board members.
Our research analysts are required to address material and relevant ESG risks within their fundamental research. The ESG specialists periodically review a sample of research notes to assess the quality of ESG analysis, highlight best practice and provide feedback on how ESG analysis can be enhanced. This in turn influences the annual appraisal process.
We also have a UK and International Corporate Governance Committee comprising members of the Sustainable Investment team and senior investors to discuss and oversee engagement, voting and stewardship issues.