July 15, 2019

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Infographic: Sustainability Report Q2 2019

Recycling trash talk, sustainable fashion, and good corporate governance -- mythical unicorns, or closer to reality than we think?

Learn more on Schroders’ Sustainability Quarterly webinar, Wednesday July 31, 2019, 11 am ET.

Oceans will

contain more

plastic than

fish by

2050

2019

The amount of

discarded

everyday items

is set to almost

double by 2025

2025

Turning trash into treasure

now looks

crucial to combatting climate change

Waste is valuable

- a tonne can generate

500-600kWh of electricity

Improving technologies are providing

attractive

business opportunities:

– Developing plastic eating bacteria

– Turning waste into insulation

of rubbish

is sent to

landfill sites

in OECD countries

The GND includes sourcing

100

million

1.2

billion

tonnes

10%

66%

2019

55%

2014

50%

2013

renewable energy

It also targets

environmental

policies, poverty,

unemployment,

and

inequality

54 countries have committed

to make their power 100%

renewable, but the GND is the

most ambitious

The impact of the GND means

that

companies can no longer

push costs

created by their

products, services and

operations onto society

Unpriced social impacts will

become

priced financial

impacts

Humans are the biggest factor

affecting

climate change and public policy will be crucial

to combatting this

tonnes of

fibres

produced

CO2

equivalent

produced

Many key

cotton-producing

countries are under

high water stress

More consumers say

they are willing to

pay more for

sustainable goods

Produce fibre using

“closed loop”

systems

which avoid waste

Save water by

using alternative ways to dye

textiles

– e.g. digital printing

Use more

environmentally friendly

wood-based fibres

like Lyocell and Modal

Recycle fibres and extend garment life

–

less fast fashion

global industrial water

pollution

is caused by the

dyeing and treatment of

textiles

global carbon

emissions

contributions

...every year!

Sustainable Investment Report

Q2 2019

Trash talk: why waste might not be wasted

The US Green New Deal (GND) and what it means for investors

Sustainable fashion: the future of the textile industry

Our engagement with companies

Active ownership

Source:

Schroders as at 30 June 2019.

World Economic Forum estimates

World Bank estimates

Nielsen data

Insight

Interpret

Influence

In Q2 2019 we voted on 3514 meetings and

approximately 99.29% of all resolutions

How the votes break down

by region across the globe:

Europe (ex-UK)

North America

Asia Pacific

Middle East & Africa

Latin America

Financials

Consumer Discretionary

Industrials

Materials

Consumer Staples

Top 5 sectors in Q2 2019

15%

12%

11%

22%

The views and opinions contained herein are those of Schroders’ Sustainable Investment team and may not necessarily represent views expressed or reflected in other Schroders

communications, strategies or funds and may change. This material is intended to be for information purposes only and is not intended as promotional material in any respect.

The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide and should not be relied on for

accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment

and/or strategic decisions. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. To the extent that you are in North America,

this content is issued by Schroder Investment Management North America Inc., an indirect wholly owned subsidiary of Schroders plc and SEC registered adviser providing asset

management products and services to clients in the US and Canada. For all other users, this content is issued by Schroder Investment Management Limited, 1 London Wall Place,

London, EC2Y 5AU. Registered No. 1893220 England. Authorised and regulated by the Financial Conduct Authority. CS1646.

28.8%

14.3%

28.3%

21.3%

1.4%

5.8%

Marketing material

Consumers are showing few signs of cutting down

their consumption or the waste they create

The textile industry is one of the most

polluting industries globally...

The GND aims to overhaul

energy production,

manufacturing, and

transportation in the US

So what can be done?

Important Information

: Past performance is not a guide to future performance and may not be repeated. The value of investments and

the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes

may cause the value of any overseas investments to rise or fall. All investments involve risks including the risk of possible loss of principal. The

opinions included in this document include some forecasted views. We believe that we are basing our expectations and beliefs on reasonable

assumptions within the bounds of what we currently know. However, there is no guarantee that any forecasts or opinions will be realised.

Read article here

So...

Potential solutions:

Disclaimers & Disclosures

This site is for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy any security which may be referenced herein. This site is solely intended for use by institutional investors and institutional-investment industry consultants.

Schroder Investment Management North America Inc. (“SIMNA”) is an SEC registered investment adviser, CRD Number 105820, providing asset management products and services to clients in the US and registered as a Portfolio Manager with the securities regulatory authorities in Canada. Schroder Fund Advisors LLC (“SFA”) is a wholly-owned subsidiary of SIMNA Inc. and is registered as a limited purpose broker-dealer with FINRA and as an Exempt Market Dealer with the securities regulatory authorities in Canada. SFA markets certain investment vehicles for which other Schroders entities are investment advisers.

Schroders Capital is the private markets investment division of Schroders plc. Schroders Capital Management (US) Inc. (‘Schroders Capital US’) is registered as an investment adviser with the US Securities and Exchange Commission (SEC).It provides asset management products and services to clients in the United States and Canada.For more information, visit www.schroderscapital.com

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