ESG Clarity
ESG Investing News and Analysis
Schroders has launched a sustainable food and water fund in Singapore, the Schroder ISF Global Sustainable Food and Water fund
It invests in companies globally that are driving the transition towards the sustainable provision of food and water.
“The global food and water system is currently unsustainable and faces intense pressure with the continued growth in the global population and the effects of climate change,” said Lily Choh, CEO of Schroders Singapore.
“An estimated $30trn of investment will need to be spent by 2050 to reduce greenhouse gas emissions by two-thirds and meet the two-degree goal set in the Paris accord, while sustainably providing food and water to an expected global population of 10 billion.”
The fund, which had an AUM of $320.4m as of the end of August, aims to invest in 35 to 60 stocks in sectors such as water management, agricultural equipment, agricultural inputs, food production and processing, packaging distribution and recycling, and food retail.
It was exposed to 42 stocks at the end of August, with 49% of the fund’s AUM allocated to the consumer staples sector followed by industrials (21.6%) and materials (18.7%).
The fund’s factsheet also states the fund produces 167.4 tonnes of carbon dioxide per 1$m of sales on average, while the sector average emits 174 tonnes of carbon dioxide.
Companies generating more than 10% of their revenue from thermal coal extraction and companies that generate more than 30% of their revenue from coal-fired power are excluded from the fund.
The fund was initially launched in October last year in Europe, and has now been rolled out Singaporean investors. It is the second sustainability focused strategy available for sale in region following the launch of the Schroder ISF Sustainable Multi-Asset Income fund in 2020.
It is part of Schroders’ Global Transformation Range, which aims to give investors long-term exposure to themes that are shaping the world’s future.
The fund is exclusively offered to HSBC retail banking clients and they can invest in the fund with a minimum investment amount of $1,000. The base currency is US dollars, while currency hedged classes in Singapore dollars, the euro and pound sterling are also available.
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