At Schroders, our focus is always on the long term and we have recognised the importance of sustainability for many years; not only where our clients are concerned, but also in respect of our employees, investors and the wider community.
We are committed to acting in a responsible way and look to drive continuous improvement across the business through the identifi cation and implementation of policies, schemes and behaviours to promote sustainability.
Schroders remains a member of the Dow Jones
Sustainability and the FTSE4Good Indices, both of which identify companies that meet globally recognised corporate responsibility standards.
Recognising that our operations have a direct effect on the environment, we set a fi ve-year target in
2007, to reduce energy usage in our London head offi ce by 15%. We are pleased to have exceeded this target, with our energy usage having reduced by almost 25 per cent. Over the same period we have reduced our carbon output in London by just under 26 per cent., refl ecting our continued investment in energy effi ciency measures.
We focus on supporting the communities in which we operate and encourage employees globally to take a proactive approach to corporate responsibility by participating in community or environmental schemes, fundraising or volunteering. Employees in many of our offi ces are able to take up to 15 hours of paid leave per year for volunteering services.
We made charitable donations of £1.2 million in 2012, much of which was donated through matching of employee donations and sponsorship. In the UK, 25 per cent. of our employees made donations via payroll giving in 2012, in recognition of which Schroders received the newly-created Payroll Giving
Quality Mark Platinum Award from the
Charities Aid Foundation.
Schroders continues to invest for the long term, in support of future growth. Ensuring we continue to operate in a sustainable way is a key part of our future plans, to nurture success and secure a long-term sustainable future.
Emma Holden
Head of Corporate Communications
[On behalf of the Corporate Responsibility Committee]
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Overview
The principles of corporate responsibility (CR) are embedded in the way we run our business.
We have policies in place to ensure that
Schroders behaves in a socially responsible way in its day-to-day activities. As a major investor, we also monitor the activities of the companies in which we invest and use our infl uence as a shareholder to encourage these businesses to act responsibly.
Schroders is committed to conducting its tax affairs in an open and transparent way. In 2012, we paid corporate income taxes of £81.6 million
(2011: £78.5 million). Further information on tax can be found on page 102 of our 2012 Annual
Report and Accounts.
We aim to comply with our tax obligations worldwide and to maintain a good reputation with tax authorities in the key jurisdictions in which we operate. In the UK, Schroders was one of the fi rst businesses to enter into a framework agreement with HMRC. We keep HMRC informed of business activities, results and key developments as they arise and proactively disclose issues, risks and uncertain tax positions.
We have also signed up to the Code of Practice on Taxation for Banks and comply with its requirements. During 2012, we engaged in dialogue with a number of external action groups to share details of our approach in this area.
Oversight
In order to ensure that CR is embedded within our business, the Corporate Responsibility
Committee is chaired by Philip Mallinckrodt, an executive Director.
Our approach to CR
Marketplace
– Being transparent in our operations and reporting
– Encouraging and supporting these principles in the companies in which we invest
People
– Attracting, developing and retaining people of integrity
Environment
– Minimising our environmental footprint
Community
– Supporting the communities in which we operate
Our behaviour is also infl uenced by our core values of integrity, passion, innovation, teamwork and excellence.
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We are committed to the UK Stewardship
Code published by the Financial Reporting
Council in 2012 and we state on our website how we comply with the code.
Our global Investment and Corporate
Governance Policy sets out our approach to engaging with companies in which we hold equity investments and our approach to confl icts of interest in that regard. We will engage and normally vote on any issue affecting the long-term sustainable value of a company in which we invest. Our focus is primarily on issues material to the value of the company’s shares.
During the year, we voted at over 5,600 company meetings. We aim to vote at all company meetings where we have an equity holding and will vote on all resolutions except where there are onerous conditions attached to voting.
Voting reports are provided quarterly to
Institutional clients and we also publish details of our voting record on our website after a suitable period so that the publication of voting does not infl uence the outcome of any company discussions. We believe that effective engagement with management should, if at all possible, remain confi dential since publicity can frequently entrench positions rather than resolve issues.
Company resolutions voted on
2012
2011
2010
3.7
6.0
4.2
4.5
90%
85%
88%
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It is important that employees understand the strategic aims and objectives of the Group and are clear about their role in achieving them.
We communicate regularly with employees worldwide through a variety of channels.
Annual employee meetings are also held to facilitate the exchange of views with senior management and discussion of the progress made by the Group. In the UK, an Employee
Forum provides an additional channel for representing employee views to management.
Remuneration
Our approach to remuneration is explained in the
Remuneration report on page 62. Employees can personalise elements of their benefi ts package to suit their own needs and ambitions.
High ethical standards
We promote high ethical standards through our internal ‘whistle-blowing’ process, whereby employees can raise concerns about behaviour or decisions that would indicate potential wrongdoing. Personal securities trading by employees is subject to a clearly defi ned set of internal policies.
Employees are not permitted to solicit or accept any inducements that are likely to confl ict with their duties. Training is provided in relation to anti-bribery, anti-money laundering, terrorist fi nance, data protection and treating customers fairly.
Equal opportunities
We are committed to providing equal opportunities in employment and to avoiding unlawful discrimination. We expect our workforce to refl ect the diversity of the many communities in which we operate. Where possible, we monitor the ethnic, age and gender composition of our existing workforce and those applying for jobs and the number of people within each of these groups. A fl exible working policy has been developed to recognise the diverse needs of employees in managing the responsibilities of their work and personal lives. We believe that achieving an effective balance in these areas is benefi cial to both the Group and the individual.
Our policy is to give fair consideration to all applications for employment, having regard to particular aptitudes and abilities. The Group gives full and fair consideration to applications for employment from disabled persons. If employees become disabled, employment continues wherever possible, with retraining given if necessary. For the purposes of training, career development and progression, all employees are treated equally.
The Group is committed to creating a work environment free of harassment and bullying, where everyone is treated with dignity and respect. A policy is in place to assist the
Group and our employees in treating everyone fairly regardless of their age, gender, race, sexual orientation, disability, religion or beliefs. This policy is monitored periodically to judge its effectiveness.

Managing diversity
We believe that appointments to roles should be based on merit and performance. We do not support quotas of any sort but do recognise that to attract, retain and develop a diverse workforce, we must have a proactive and coordinated approach.
Schroders is already diverse in terms of the nationalities employed in our local offices across the world. This is a key strength that provides us with local market knowledge and a deep understanding of our clients’ needs.
The ratio of men to women in the organisation has remained constant since 2007 with 44 per cent. of employees being female. In 2012, 52 per cent. of our graduate intake was female, compared with 33 per cent. in 2011 and 25 per cent. in 2010. To support our ongoing commitment to diversity, we intend to assess maternity leaver and return rates, by country and function, to understand how this impacts our pipeline of talent. We are also considering the introduction of a ‘maternity mentoring’ programme, to offer practical support and coaching.
Personal development
The Group operates an engaging performance management model which encourages all of our employees to continue to develop and progress.
An annual appraisal is at the core of our model, where performance is measured against agreed objectives to inform decisions on remuneration, career development and future progression.
We strive to encourage all of our employees to fulfil their potential by providing access to training and development opportunities, thus ensuring they have the resources available to learn and build their own successful career in line with business objectives.
Gender
Female 44%
£187.3bn
Male 56%
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Energy usage
Energy usage is one of the most signifi cant ways in which our operations directly affect the environment. In 2012, we exceeded our fi ve-year target of a 15 per cent. decrease in our energy usage from 2007 levels. Energy usage has reduced by 24.3 per cent. over this period.
We used best practice 2012 guidelines from
DEFRA/DECC’s Greenhouse Gas Conversion
Factors for Company Reporting to calculate our
CO2 emissions in London. During the fi ve-year period, our carbon output has reduced by 25.7 per cent. which refl ects our investment in energy effi ciency measures. More information on other environmental measures can be found on our website www.schroders.com/cr.

Charitable giving
Our approach to charitable giving focuses on employee choice, supplemented by discretionary donations. The Group matches employee charity donations and sponsorship raised, up to £2,400 per employee, per year.
In 2012, we maintained our donations at £1.2 million (2011: £1.2 million), despite a reduction in profi tability. This included discretionary, one-off donations of £300,000, to charities involved with social welfare around the world.
Payroll-giving schemes are operated in a number of our offi ces. In the UK, 25 per cent. (2011: 25 per cent.) of employees continued to give in this way in 2012, and charitable matching donations by the fi rm of £280,000 (2011: £250,000) were made to support these donations. We received the newly-created Payroll Giving Quality
Mark Platinum Award from the Charities Aid
Foundation in recognition of this, having received the Gold Award in 2011.
Volunteering
To underpin our focus on employee community involvement, employees in many of our offi ces are able to take up to 15 hours of paid leave per year for volunteering services.
In London, Schroders has been a corporate sponsor of the Hackney Schools’ Mentoring
Programme, established by the East London
Business Alliance and Hackney Learning
Partnerships, for the past fi ve years.
Our employees mentor 14 to 17-year-old students in the London Borough of Hackney, increasing their self-confi dence, allowing them to gain experience of the working environment and broadening their aspirations.
Employees across the globe have also volunteered to help a variety of local charities throughout 2012, both through the volunteering schemes organised by Schroders and in their own free time.
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In England, a team took part in The Wall
Ultra Challenge, running from Carlisle Castle to the Gateshead Millennium Bridge to raise money for the Teenage Cancer Trust
Forty employees volunteered to sell poppies as part of the annual Poppy
Appeal, to raise funds for The Royal
British Legion. The charity provides help and welfare to the serving and ex-service community and their families
NEW YORK
CaRlISlE lONDON
PaRIS
A 230-mile bike ride from Oxfordshire to Paris was no match for a London employee who joined 40 other cyclists to raise money for
1moreChild, a charity that rescues vulnerable children from the streets of Uganda
The New York office has continued to support the READ (Reading Excellence and Discovery Foundation) Alliance with employees volunteering regularly
An adventurous employee took on the
Safaricom Marathon, one of the world’s most challenging endurance races. He raised money for Tusk UK, a charity which improves the quality of life for thousands of Kenyans by providing education and healthcare

In Amsterdam, an employee participated in the Wintertime Challenge Midnight Run, raising money for Spieren voor Spieren, a Dutch charity that supports children suffering from muscular dystrophy (MD)
Employees from the Swiss offi ce, along with their families, entered a sponsored run to raise money for the Theodora Foundation, a charity which places clowns into hospitals where they bring laughter to sick children
Switzerland’s Special Olympics National
Winter Games was supported by 30 employees. Special Olympics is a charity that organises sports events for people with learning disabilities
PaRIS aMSTERDaM
SWITZERlaND
A group travelled to Nepal with the non-profi t housing organisation, Habitat for Humanity.
Joined by volunteers from around the world, the volunteers helped local people to build and renovate homes to live in
NEPal
HONG KONG
The challenging Hong Kong Marathon was no match for fi ve employees who completed it to raise money for Operation
Smile, a charity that operates on children with facial disfi guration
SINGaPORE
KENYa
The Singapore offi ce organised for 40 volunteers to clean and paint homes for the elderly. The volunteering day was prompted by the growing relationship between the offi ce and a local activity centre for the elderly
The 2012 Great Adventure Challenge in Australia raised money for Starlight
Children’s Foundation, a charity that grants the wishes of seriously ill children aUSTRalIa
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