Cazenove: Making Sustainability Part of Every Decision

Making sustainability part of every decision

At Cazenove Capital, sustainability is not a standalone initiative – it is embedded throughout the business and integrated into how we invest, operate and engage with society. As part of Schroders, Cazenove has developed a comprehensive Corporate Sustainability Framework built around three interconnected pillars: People, Planet and Collective Action. This framework ensures that environmental and social considerations are incorporated into decision-making across the organisation, while maintaining a strong focus on delivering long-term outcomes for clients.

What we did

Recognising the critical role that financial institutions play in addressing global sustainability challenges, Cazenove took proactive steps to integrate sustainability into both its investment process and its own operations.

The firm committed to becoming carbon neutral across its operations in 2019 and has since worked to reduce emissions in line with science-based climate targets. As a founding signatory of the Net Zero Asset Managers initiative, Cazenove committed to transitioning discretionary assets under management to net zero by 2050 and developed a Climate Transition Action Plan to guide progress.

Beyond climate, the firm has addressed nature-related risks by committing to eliminate commodity-driven deforestation exposure from the portfolios it manages. This has involved setting clear expectations for hundreds of companies, voting against directors where progress was inadequate and removing persistent laggards from sustainable investment universes.

How we delivered it

Cazenove’s approach is founded on strong governance, active stewardship and accountability. ESG analysis is mandatory across all investment teams, ensuring sustainability risks and opportunities are assessed alongside traditional financial metrics. Investment teams are supported by specialist sustainability professionals who provide oversight, challenge and expertise.

The firm also uses its influence as an investor to drive change. Through company engagement programmes, collaborative initiatives and shareholder voting, Cazenove works with businesses to improve environmental performance, strengthen governance standards and accelerate the transition to a lower-carbon economy. In 2025 alone, the firm conducted hundreds of company engagements and participated in numerous collaborative initiatives focused on sustainability outcomes.

Sustainability objectives extend beyond investment activities. Senior management remuneration is linked to key sustainability metrics, including climate and diversity targets, reinforcing accountability at the highest levels of the organisation. Internally, employees are supported with training and development opportunities to build sustainability expertise and ensure responsible investment principles are consistently applied.

The results

The impact of this approach is measurable. By 2024, 100% of electricity used across global operations came from renewable energy, achieved one year ahead of target. Scope 1 and 2 emissions had fallen significantly from the 2019 baseline, while investment portfolios continued to progress towards net-zero alignment.

The firm’s commitment has also been recognised externally. Schroders received an “A” rating from CDP, ranked highly in the ShareAction Asset Manager Survey and was recognised as a leading performer in the World Benchmarking Alliance Financial Sector Benchmark. Cazenove further demonstrated leadership by becoming the first wealth manager to achieve the FCA Sustainability Focus Label.

Why this matters to us

For Cazenove, sustainability is fundamentally about fulfilling its fiduciary duty and helping clients preserve and grow wealth over the long term. Environmental and social challenges present both risks and opportunities that can materially affect investment outcomes. By embedding sustainability into every aspect of the business—from governance and operations to investment decisions and community engagement—Cazenove seeks to deliver resilient returns while contributing positively to society and the environment.

This commitment reflects the firm’s belief that long-term investment success and sustainable progress are intrinsically linked, creating lasting value for clients, communities and future generations.