Schroder BSC Social Impact | ESG

The Social Impact Trust seeks to maximise positive impact outcomes and minimise negative effects across Environment, Social and Governance factors. A proportionate, credible and useful ESG risk management approach is integral to achieving the Trust’s mission. It ensures the Trust identifies and manages material risks that may affect impact or financial performance, as well as fulfilling the Trust’s responsibility to its stakeholders including end beneficiaries, employees, clients, shareholders and partners. These responsibilities are enshrined in Big Society Capital’s Responsible Business Principles, which act as the basis for the Trust’s ESG management approach:

1. Avoid Harm – To minimise adverse and negative impacts on target beneficiaries and communities, the environment, employees, and all stakeholders.

2. Business Integrity – To exhibit honesty, integrity, fairness, diligence and respect in all business dealings and with all stakeholders and communities, including respecting commercial and personal confidentiality.

3. Proportionate Implementation – To identify key ESG risks and, as applicable, be proportionately compliant based on the materiality of the ESG risks, in line with the Responsible Business Principles and best practice within the target industry.

4. Protect the Environment – To promote and practise the efficient use of natural resources and protect the environment wherever possible.

5. Combat Climate Change – To promote and practice activities that minimise or seek to reverse climate change.

6. Targeted Social Impact – To intentionally create a positive and measurable social impact for target beneficiaries and communities. 

7. People Centred Approach – To promote and provide high-quality working practices, conditions and labour rights, and respect the dignity and well-being of all employees, contractors and stakeholders.

8. Inclusive Practices – To promote Equality, Diversity and Inclusion practices through governance and decision-making, employment, organisational culture and values, and operational delivery.

9. Good Governance – To strive for international best practice in corporate governance.

The Trust recognises that the ESG landscape is rapidly evolving and will continue to iterate its investment process to take account of best market practice. The current approach builds on Big Society Capital’s established investment process to determine the appropriateness of fund managers’ processes, policies and performance together with its assessment of the material ESG issues in the business models the fund managers are investing in. This process identifies material ESG risks and, where applicable, mitigating actions are agreed as part of the investment recommendation and monitored as part of portfolio management.

More details of the ESG framework are available in the Trust’s latest set of annual accounts which can be found here:

INVESTMENT TRUSTS: Schroder BSC Social Impact Trust plc [AM + Individual] (schroders.com)