Wealth manager and investment provider Schroders has launched carbon offset share classes.
The new classes offer clients the choice to offset carbon emissions associated with their underlying fund holdings.
The share classes will be available as part of the Schroder International Selection Fund Global Climate Leaders.
The fund is focused on investing in companies which evidence ‘climate change leadership’ and is managed by Simon Webber and Isabella Hervey-Bathurst.
Mr Webber said: “Achieving the goals of the Paris agreement requires a massive step change in the pace of emissions reduction globally. This fund aims to invest in those companies at the very forefront of making the necessary emission reductions. It was therefore a natural evolution for us to broaden this focus directly to our investors in the strategy through these pioneering share classes.”
Schroders said it would aim to ensure the offsets purchased would be equal to the Scope 1 and 2 emissions of the portfolio companies attributable to the share class.
Scope 1 emissions are direct emissions from sources owned or controlled by the company, while Scope 2 emissions are indirect emissions from the consumption of purchased electricity, heat or steam.
The offsets will be linked to offset projects, with details of each project to be provided to investors via the Schroders website.
Schroders is one of the UK’s largest investment management firms with assets under management of approximately £737.5bn, and over 6,100 staff across 38 locations.
