Contents
Introduction
Overview of Schroders
Corporate Responsibility
Marketplace
Workplace 12
Environment 18
4
6
1
2
Community 24
Contact details 26

At Schroders, we know that sustainability is important not only to our clients, but also to our employees, investors and the community at large; and we are committed to acting responsibly. With our
Corporate Responsibility Committee now in its fourth year, we have put in place policies and schemes to ensure that the
Group acts in a socially responsible way in its day-to-day operations and encourages employees to do the same.
As a fund manager, our biggest environmental and social impacts come through our investment activities. We are therefore concerned not only with our own corporate responsibility activities, but we also monitor the activities of the companies in which we invest. We have had a Responsible Investment Policy for over ten years and, with an additional
Responsible Investment analyst joining the team, we expect our activity in this area to increase throughout 2011.
Tackling climate change is as important as ever and requires action from governments, industry and consumers.
We believe that climate change will be the catalyst for a new ‘industrial revolution’ as the world moves towards a lower carbon economy.
We were one of the first asset managers to launch a climate change fund in 2007, and it continues to outperform the MSCI World
Index (see page 7 for more information).
We also apply these principles of reviewing climate change and monitoring carbon footprints to our business operations.
As set out in our Environmental Policy, and measured against our baseline year of 2007, we are currently exceeding our KPI target for 2012 of reducing the amount of waste we produce by 50 per cent. and sending less than 10 per cent. of our waste to landfill.
Indeed, in 2010, we were pleased to send no waste to landfill. We are committed to continually measuring our progress and researching new ways to reduce our impact on the environment in the future.
With a heritage of over 200 years,
Schroders has always understood its non-financial obligations to society and encourages employees across the world to participate in volunteering and fund-raising in their local communities.
Schroders’ offices have a variety of schemes in place locally, such as paid volunteer leave and matched giving for funds raised, in addition to larger discretionary donations administered by the Charity Committee in London.
Operating from 32 offices in 25 countries worldwide provides us with a significant challenge and one of our key priorities is to ensure that we continue to work together, across all our global operations, in creating a long-term sustainable future.
Alan Brown
Group Chief Investment Officer
Chairman of the Corporate
Responsibility Committee
Director Schroders plc
1

As at 31 December 2010.
Alternatives 13%
Private Banking 8%
Equities 46%
Fixed income 17%
Multi-asset 16%
£5.8bn
Americas
Bermuda
Buenos Aires*
Cayman Islands
*Investment centres
Mexico City
New York*
Philadelphia*
São Paulo*
More information can be found online at www.schroders.com
2

Equities Fixed income Multi-asset Alternatives
£90.3bn (2009: £71.1bn) £33.8bn (2009: £23.0bn) £31.5bn (2009: £23.1bn) £24.9bn (2009: £18.6bn) £16.2bn (2009: £12.6bn)
Asia Pacific
Australia
Emerging markets
Europe
Global
Quantitative equities
UK
US
Aggregate and multi-strategy
Cash/liquidity
Global
Government
High yield
Investment grade credit
Tax-exempt
Liability-driven investment Commodities
Multi-asset portfolios Currency
Structured investments Emerging market debt
Funds of hedge funds
Private equity funds of funds
Property
Advisory and discretionary asset management on behalf of high net worth individuals and family offices
Cash management
Custody and execution services
Deposit taking
Specialised lending
£6.5bn
£5.3bn
£9.5bn
UK
London*
Europe &
Middle East
Amsterdam*
Copenhagen
Dubai*
Frankfurt
Geneva*
Gibraltar
Guernsey*
Jersey
Luxembourg*
Madrid
Milan*
Paris
Rome
Stockholm*
Zurich*
Asia
Beijing
Hong Kong*
Jakarta*
Seoul*
Shanghai
Singapore*
Sydney*
Taipei*
Tokyo*
3

4
Schroders has a long-standing commitment to sustainability, maintaining consistently high standards in all areas of corporate responsibility.
We seek to:
– Attract and develop the best people;
– Reduce our environmental footprint;
– Support the communities in which we operate;
– Be transparent in our operations and reporting; and
– Encourage and support these principles in the companies in which we invest.
Schroders is an index component of both the Dow
Jones Sustainability World Index and the Dow Jones
STOXX Sustainability Index. We are also included in the FTSE4Good Index, which is designed to identify companies that meet globally recognised corporate responsibility standards. As a major investor, we recognise that how we behave can influence other companies.
Our stakeholders, with whom we maintain an ongoing dialogue, include shareholders, clients, employees, regulators, non-governmental organisations, the wider community and companies in which we invest. We endeavour to develop close relationships with all stakeholders. Our behaviour is influenced by our core values:
Integrity: We are honest, open and uncompromising in our commitment to our standards. We welcome the responsibility that comes with the trust our stakeholders place in us. As a financial services company that operates ethically within regulated markets around the world, we are committed to carrying out our business fairly, honestly and openly to protect our reputation and the interests of our clients and other stakeholders. We have a zero tolerance to bribery, in any form, anywhere in the world.
Passion: We share a deep-rooted belief in what we do. We demonstrate this through the dedication, enthusiasm and energy we bring to our work.
Innovation: We challenge the established way of doing things and seek to anticipate future developments.
Teamwork: We work as a team to create value for our clients. We value the contribution of individuals and encourage healthy debate.
Excellence: We strive to deliver the best and continually look for ways to improve.
The Board is responsible for corporate governance and corporate responsibility within the Group. Alan Brown,
Group Chief Investment Officer and Executive Board
Director, chairs the Corporate Responsibility Committee that oversees employee, environmental and community involvement issues. This Committee is responsible for the development of Schroders’ policies on corporate responsibility and their implementation throughout the
Group, as we look to embed corporate responsibility principles in our business activities and culture.
Our approach to corporate responsibility is built around four main areas:
– Marketplace;
– Workplace;
– Environment; and
– Community.

Key performance indicator
Our voting record at annual general meetings.
As a leading asset management group, we recognise that our engagement with the companies in which we invest can have a significant impact.
How have we performed in 2010?
From London, we voted on 85 per cent. of resolutions in 2010. Our policy is to vote on all resolutions except where there are onerous conditions.
08
09
10
50 60 70
Per cent. of resolutions voted on
95
88
85
80 90 100
Key performance indicator
We regularly conduct a survey of employees where results are benchmarked against other financial services organisations and high performing organisations. The results provide the management team with an insight into how employees view the business over the longer term.
How have we performed in 2010?
Our employees remain highly engaged with the firm, and 95 per cent. of employees who responded to our most recent survey, conducted across the UK,
Europe and the Middle East, indicated that they were proud to be associated with Schroders.
Key performance indicator
Our CO
2 e output in London, as a result of electricity and gas consumption, has been calculated using the latest 2010 DEFRA Guidelines. We are committed to a continuous reduction in the negative environmental impact of our operations and we are targeting a 15 per cent. reduction by 2012. We began measuring our carbon footprint in 2007.
How have we performed in 2010?
During 2010, our carbon output has reduced by eight per cent. versus 2009, reflecting our continued investment in energy efficiency measures.
08
09
10
0
05
08
10
50
Per cent. of survey respondents proud to be associated with Schroders
89 95%
92
95
60 70 80 90 100
4,700
5,098
CO
2 tonnes
5,656
6000
Key performance indicator
The Group’s financial contributions to charitable causes during the year. Our charitable giving is focused on employee choice, with the Group
‘matching’ employee donations and sponsorship.
How have we performed in 2010?
We have increased our charitable giving by
£0.5 million in 2010 to £1.1 million, reflecting our improved financial performance.
08
09
10
0.0
0.6
£ millions
1.1
1.1
1.2
5

6
Marketplace
As a fund manager, the direct environmental and social impacts that we have are relatively small in comparison to other sectors. It is through our investment activities that we have the greatest environmental and social impacts.
During the investment process, we have a responsibility to take into account the environmental, social and governance (ESG) performance of the assets in which we invest, and we endeavour to be responsible investors when exercising our duties to our clients.
Schroders has operated a Responsible Investment
(RI) Policy for over a decade. In 2007, we became a signatory to the UN Principles of Responsible Investment
(UNPRI), which we believe reflected the policies and processes that we already had in place. In applying these to our business, we aim to help clients align their responsible investment and financial objectives.
The combination of numerous factors, such as globalisation, changing political landscapes, ecosystem depletion, urbanisation, resource utilisation, demographics, climatic patterns, employee attitudes and consumer preferences creates challenging and changing markets in which companies must operate. The assessment of how a company generates long-term value, through adapting to these changes and capturing the opportunities, is enhanced through the analysis of corporate ESG disclosure and performance. This helps inform how a company’s strategy aligns with these macro issues.
Schroders has identified three ways in which ESG data can be integrated in the investment process.
1. As a proxy for the quality of management –
ESG data can be used as an indicator of the quality of a company’s management practices and how these affect financial performance. Analysis can be used to assess the ability of a company to expand into new markets, attract knowledgeable and skilled employees and access key resources.
2. Linking ESG and financial performance –
Good ESG performance can have a direct influence on the financial performance of a company, although materiality varies. ESG performance can again be used as a proxy for the overall performance of a company.
3. Thematic approaches – Thematic funds can be set up to invest in companies with material exposure to individual or collective environmental and social themes (e.g. climate change, water or healthcare).
Over the last few years we have looked to explicitly consider ESG issues in the investment process.
As global ESG disclosure and standardisation improves, the understanding of how key performance indicators influence business performance will also improve, as will how the analysis of ESG data can be integrated into the stock selection, valuation and engagement processes.
To facilitate the integration of ESG into our investment process, we:
– Have a team of ESG specialists who sit with the investment teams;
– Send quarterly ESG ratings of portfolio holdings to each equity desk;
– Have developed an ESG research template, in consultation with company analysts and ESG specialists, which is available to all internal investors;
– Undertake explicit ESG company analysis and comment by company analysts, supported by the
ESG specialists who also undertake audits of this research;
– Produce thematic ESG research such as human capital management and water resource capacity; and
– Subscribe to dedicated ESG research providers.

Schroders’ Global Climate Change Fund was launched in June 2007. It has outperformed the
MSCI World Index by 6.37% (as at 31 December
2010) and is also ranked in the 1st quartile within its peer group for ‘1 year’, ‘3 year’ and ‘since inception’ periods.
Schroders’ Global Climate Change Fund performance since inception versus the
MSCI World Index
120
110
100
90
80
70
60
50
40
Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09
Schroder ISF Global Climate Change Equity Net
MSCI World TR – Net Return
Jun 10 Dec 10
Schroders believes that climate change will be the catalyst for a new ‘industrial revolution’ as the world moves towards a lower carbon economy. Increasingly stringent emissions targets will necessitate large-scale capital investment alongside less-costly abatement measures.
The economic consequences at both a global and corporate level are becoming increasingly clear. Climate change policy and regulation will have a profound effect on most companies’ revenues, operating costs, competitive advantage and ultimately, earnings growth.
Schroders’ Global Climate Change Fund seeks to maximise excess returns by investing in companies which are beneficiaries of efforts to both mitigate and adapt to the impact of climate change. The investment thesis for the fund is founded on the expectation that the accelerating pace of national and international policy action on climate change is creating a favourable outlook for companies involved in efforts to either mitigate climate change, or help us to adapt to the impacts of climate change.
The fund draws its ideas from five broad areas of opportunity:
1. Environmental resources (e.g. water resource management, agriculture);
2. Low carbon fossil fuels (e.g. natural gas);
3. Clean energy (e.g. solar power);
4. Sustainable transport (e.g. electric cars); and
5. Energy efficiency (e.g. light weighting in transport).
Any company that is affected positively by climate change will be considered as a potential investment candidate for the fund.
The global nature of climate change requires a global investment perspective. The fund’s managers are fully integrated within Schroders’ fundamental Global and International Equity team, where the belief in climate change-related investment opportunities forms one of the key themes harnessed by the team to identify structural growth.
7

8
Marketplace
Schroders often screens both segregated mandates and pooled funds.
Segregated mandates – The nature of the screen is defined by the client’s value preferences, fund objectives and parameters, alongside other financial and legal criteria. Segregated funds often exclude companies based on moral or ethical grounds, for example declining to invest in tobacco. Screening can assess the materiality of a certain criteria to the business as a whole, for example, where in the value chain a specific business lies or how much of its overall revenue is derived from the screening criteria. Some clients require more sophisticated screening, which could include environmental protection concerns or social issues. Schroders utilises both in-house expertise and external specialists when developing and operating screens for clients.
Pooled funds – These also operate with ethical screens that define the investable universe. For example, the
Schroder Syariah Balanced Fund offers opportunities for capital growth while operating in accordance with
Islamic principles in the capital market.
On behalf of our clients, Schroders has share ownership rights, which we exercise through company engagement and proxy voting. This is an integral part of our role in managing, protecting and enhancing the value of our clients’ investments. In exercising these responsibilities, we combine the perspectives of our portfolio managers, company and ESG analysts to form a rounded view of each company and the issues it faces. We concentrate on each company’s ability to create sustainable value and question or challenge companies about ESG issues that we perceive may affect their future value.
Engagement with companies is part of our fundamental approach to the investment process as an active investor, and enhances both communication and understanding between companies and investors.
We engage with companies to:
– Monitor the ongoing development of ESG practices within a company;
– Complete our analysis; and
– Seek change in ESG performance and processes that will protect and enhance the value of the investments for which we are responsible.
Group ethical funds under management 2005-2010
05
06
07
08
09
10
2010 saw a large increase in ethical funds under management (FUM), reflecting an increase in the number of new ethical accounts.
■ Ethical FUM (£bn)
4.47
4.22
3.68
3.85*
6.00
2.60
3.30
3.60
8.22
4.40
* Reported as £3.84bn in 2009. This was as a result of failure to include one account of £11m in reporting.
In addition to the ethical FUM which are actively screened, a further £10 billion of FUM are ‘monitored’ for their exposure to companies with investments in
Sudan. Where it has not always been possible to exclude companies from funds, for legal and financial reasons, clients have chosen to be informed of their exposure on a regular basis.
11yr
Average
06
07
08
09
10
0
Our activity for 2010 ESG engagement performance is in line with previous years, and above the 11 year average. An additional analyst will be joining the team in 2011, and we anticipate that the number of engagements will increase further.
Engagement activity over the last five years
Number of engagement occurrences
■ Investor Led ■ Company Led ■ Voting
20 40 60 80
4.40
100

We recognise our responsibility to make considered use of voting rights. We evaluate voting issues on our investments and, where we have the authority to do so, vote on them in line with our fiduciary responsibilities to act in the interests of our clients.
Schroders will vote for or against any proxy requests relating to companies listed in the UK, and for companies listed outside the UK and for non-UK clients on proxy requests relating to the following securities:
– The largest 500 International (non-UK) holdings by value;
– The largest 300 UK holdings by value;
– European smaller company and Japanese holdings where Schroder Investment Management holds above 5% of equity market capital; and
– Securities which local regulations require to be voted.
The table below provides a record of our global voting activity for 2010.
Voting activity 2008-2010
Meetings
Proposals
2010
4,758
43,674
2009
5,032
46,521
2008
5,423
49,360
Voting decisions with or against management
2008-2010
■ With management ■ Against management
08
09
10
0% 20% 40% 60% 80% 100%
01
02
03
04
05
06
07
08
09
10
0%
Whilst the majority of these resolutions target specific corporate governance issues which are required under local stock exchange listing requirements
(e.g. approval of directors, accepting reports and accounts), some are tabled by shareholders and focus on social, ethical and environmental (SEE) issues. The majority of these shareholder resolutions are usually tabled at Annual General Meetings of
US companies. Where a shareholder resolution of an SEE nature is tabled, we take into account company performance, best practice, whether the company has faced similar resolutions before and, ultimately, if the resolution is in shareholders’ interest.
We will withhold support or oppose management if we believe that it is in the best interests of our clients to do so.
10 year voting record (by votes cast) on social, ethical and environmental (SEE) resolutions
■ For ■ Abstain ■ Against
20% 40% 60% 80% 100%
9

Marketplace
Breakdown of social, environmental and ethical (SEE) shareholder resolution voting records by issue (2001-2010)
Issues
Animal Testing/Welfare
Genetically Modified Organisms
Weapons
Tobacco
Miscellaneous
2010
5
0
2
3
1
2009
8
1
5
5
0
2008
8
2
2
2
0
2007
13
3
5
3
0
2006
14
6
5
8
0
2005 2004
18 4
6
6
5
9
5
0
8
0
2003 2002
1 0
2
4
5
0
7
4
2
0
2001
0
5
3
4
1
Toxic Chemicals
Greenhouse Gases and Climate Change
Renewable Energy and Energy Efficiency
Nuclear Power
Access to Protected Areas
Environmental Policy/Programme
Forestry
Miscellaneous
Equal Opportunities
Labour Standards and Human Rights
HIV/AIDS
Drug Pricing/Access
Health Care
Health and Safety
Pay Disparity
Miscellaneous
Corporate Social Responsibility/Social
Environment Ethical/Sustainability Report
Link pay to ESG
Miscellaneous
Total number of resolutions voted on
9
0
4
116
0
2
0
2
0
0
7
15
20
0
16
0
6
4
16
4
6
0
0
99
1
2
12
3
0
0
16
12
0
2
3
0
8
0
15
0
4
0
1
92
0
2
3
3
0
0
12
27
1
0
8
1
2
1
12
1
11
2
1
122
3
5
2
3
0
1
13
22
0
0
10
1
6
3
14
1
8
1
0
123
1
9
0
3
1
0
12
25
3
1
7
3
1
3
7
5
3
1
1
95
1
2
0
1
4
7
7
16
1
1
4
2
1
3
5
0
5
2
4
127
3
7
0
3
8
5
10
13
1
1
12
2
3
5
12
5
3
1
2
90
0
0
1
53
0
0
0
0
0
4
6
16
5
1
3
3
0
2
2
3
2
4
0
1
2
1
9
16
2
2
12
0
1
3
6
5
0
2
0
1
0
6
9
17
3
0
4
2
0
4
2
4
0
1
5
73
10

Schroder Property Investment Management has been managing property funds since 1971. With over £9 billion of assets under management, we are one of the largest institutional property investment managers in the UK.
The issues of environmental sustainability and social responsibility have been integrated into our investment process for many years. By incorporating these issues into the investment management process, we are able to protect and enhance our clients’ investment returns, whilst reducing portfolio risk from issues such as property obsolescence and future government legislation.
Investment management – Our commitment begins at the initial appraisal stage when seeking to identify new investment opportunities. Each new acquisition undergoes a separate RPI audit process, and the report is designed to identify any weakness in the ability of the building to deliver future returns due to issues such as flooding, contamination, energy efficiency, water management and social occupier issues.
Asset management – In 2010, we ensured that each property had its own RPI plan which supplements the existing asset management plan. Existing buildings are asset managed in accordance with our belief that through factoring environmental and social issues in the future refurbishment plans of a building, it will become more attractive to occupiers. Our approach remains focused on delivering on-site solutions to achieve our clients’ objectives effectively, and where the management of a building is undertaken on our behalf by a managing agent, we ensure their policies are fully aligned with our own.
Reporting – Two years ago we developed an RPI Policy that outlines our role and responsibilities as owners, managers and developers of property assets. In 2010, we began to develop a portfolio reporting system, in conjunction with our managing agents, to allow key performance indicators (KPIs) across a range of issues to be developed through a process of formal monitoring, linked with the RPI plan for each asset. With a diverse range of both properties and occupiers across our portfolios, collating accurate and timely data is ongoing.
We aim to publish these KPIs in 2011, and will continue to use our membership of industry bodies to lobby for greater reporting standardisation against a backdrop of competing benchmarks, questionnaires and voluntary codes that may often conflict with regulations.
Legislation – The most immediate legislative requirement facing property owners is the introduction of the Carbon Reduction Commitment Energy
Efficiency Scheme (CRC). The 2010 budget changed the operating model of the legislation, which is now effectively a carbon tax. CRC will affect large electricity and gas consumers who will be required to participate in the scheme, monitor their emissions and purchase allowances sold by the Government for each tonne of CO
2
they emit. The legislation makes it clear that property investors would be failing in their fiduciary responsibility if the energy efficiency of property assets was not a key consideration when making buy or sell decisions. We continue to lobby for simple changes to the scheme to allow reporting to be completed at an individual fund level (rather than aggregated at a corporate level) to facilitate greater ownership of a portfolio’s energy consumption by both landlords and occupiers.
We still anticipate regulation to control the acquisition of buildings with the poorest energy efficiency ratings
(Energy Performance Certificate level G ), and continue to monitor both UK and EU policy debates which may influence future regulation.
The full Responsible Investment report for 2010 can be found on our website.
View this report online at schroders.com/RI
11

Workplace
The Group employs more than 2,700 people across
25 countries. Our aim is to be an employer of choice and one of our strategic priorities is to develop our talented people in order to deliver to our potential.
We work to ensure that our employee policies reflect best practice within each of the countries in which we operate, and that our employees understand the strategic aims and objectives of the Group, are clear about their role in achieving them and participate in the wider community. We believe that our approach results in engaged and motivated employees. A 2010 survey of employees working in the UK, Europe and the Middle
East showed that 95 per cent. of respondents were proud to be associated with Schroders.
We are committed to providing equal opportunities in employment and to avoiding unlawful discrimination.
We expect our workforce to reflect the diversity of the many communities in which we operate, and we recognise that through the attraction and retention of a diverse workforce, we are better able to understand the needs of all of our clients.
A Flexible Working Policy has been developed to recognise the diverse needs of employees in managing the responsibilities of their work and personal lives, and this Policy is open to all permanent employees with more than 26 weeks’ service.
Flexible working arrangements offer broader scope to determine when, where and how work can be done.
We do not believe that hours of attendance constitute the only measure of an employee’s contribution, and we know how important it is to measure outcomes and results. Whilst flexible arrangements are not suitable for all roles, rethinking the way work can be done and allowing employees to balance their multiple commitments can improve productivity, provide extended hours of service and help recruit and retain quality employees.
A Sabbatical Policy has been implemented to enable employees with three or more years of continuous service, to take an unpaid leave of absence of up to 12 months. Examples of where sabbaticals may be granted include educational leave, to take up a temporary post in public service (including a charity) or extended travel for two months or more.
12
Length of service (years)
10+
20%
5-10
3-5
1-3
<1
15%
14%
23%
28%
Age profile (years)
50+ 10%
40-50
35-40
30-35
25-30
<25 3%
15%
20%
23%
30%

It is the Group’s policy to give fair consideration to all applications received, having regard to their particular aptitudes and abilities. For the purposes of training, career development and progression, all employees are treated fairly with other employees.
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 realising this commitment to treat everyone fairly regardless of their age, gender, race, sexual orientation, disability, religion or belief.
This policy is monitored periodically to judge its effectiveness and is updated in accordance with changes in the law. Where possible, we will capture 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. Our Equal Opportunities Policy will be reviewed in the light of this information.
Gender breakdown
We communicate with all employees worldwide through multiple channels: via email, the Group intranet and quarterly magazine, ‘Inside Schroders’. In London, we also use all employee meetings, ‘Inside Schroders
Live’, to facilitate the exchange of views with senior management and discuss the Group’s progress in meeting its objectives.
In the UK we have an Employee Consultation Forum consisting of employees elected by their peers.
Members of the Forum meet regulary with management as a Joint Consultative Group which discusses employee-related matters and provides feedback and recommendations to senior management.
Our approach to remuneration is consistent with our ambition to be an employer of choice. We have developed flexibility to enable our employees to personalise elements of their remuneration package to suit their own needs and ambitions.
We recognise that individuals have different personal requirements dependent upon where they are in both their life stage and career. We use a flexible benefits scheme, ‘Flex’, in the UK, to complement our goals of attracting, retaining and developing the best people, by allowing UK employees to personalise the remuneration and benefits that they receive.
Male 56%
Female 44%
13

14
Workplace
Defined Contribution Pension Scheme
Group Life Assurance
Personal Accident Insurance
Group Income Protection
Share Incentive Plan (SIP)
Give As You Earn (GAYE)
Flex also offers employees the opportunity to invest up to £125 per month in Partnership shares in Schroders plc, with a matching contribution from Schroders of up to £50 per month. We also offer UK employees the opportunity to make charitable donations which are again matched up to a maximum of £200 each month.
Holiday
Medical care scheme
Dental insurance
Childcare vouchers
MyDiscounts
We recognise the importance of ensuring that the work/life balance of our employees is appropriate.
Employees are given the opportunity to buy or sell a maximum of five days holiday each year or to
‘roll-over’ five days holiday if they have been unable to utilise them during the year.
Medical care, dental care and childcare voucher options are also available, to provide our UK employees with the flexibility to match the composition of their remuneration to their personal circumstances.
‘My Discounts’ is a scheme available to UK employees which offers exclusive savings on national and local retailers.

We operate an Employee Referral Scheme that is designed to attract the best candidates by providing a financial reward to current permanent employees for introducing new recruits to Schroders.
We believe that we provide one of the most comprehensive training programmes in the fund management industry, offering a range of opportunities for graduates to join our Investment, Distribution and
Infrastructure divisions. Structured in-house training is combined with a wide range of external courses and study for professional qualifications. The result is a wellrounded scheme that develops both professional skills and personal effectiveness, equipping our employees to play a key role in driving our future business success.
After a successful graduate milkround at selected UK universities, we received a record number of applications for the 2011 graduate programme. 12 graduates have been hired to join the Company in August 2011, 10 of these will be based in the UK and two who will join the
Greater China graduate programme.
Schroders offers annual internships where students work in the London office for eight weeks, undertaking specific projects and learning about the asset management business. Successful interns are then considered for places on the graduate programme.
In August 2010, we also held a work experience day for 15 to 18 year olds, to provide an insight into career opportunities within Financial Services. 50 students attended and enjoyed an interactive day of presentations, business games and careers advice delivered by Schroders employees. This will be repeated in 2011.
In creating a high-performing organisation, we recognise the importance of encouraging all of our employees to learn, develop and fulfil their potential. We are dedicated to providing our employees with the opportunities and experiences they need to achieve their potential and grow their knowledge, skills and capabilities. We do this by providing products and services to support our employees in identifying their development needs and determining action plans to meet them.
To assist in achieving this goal and promoting our core values, we have a ‘stages of development’ framework.
This allows individuals to identify how they should be demonstrating Schroders’ core values within four key areas of competence at each stage of their career.
An internal learning schedule is also available to all employees via the new Learning and Development intranet pages, offering a wide range of opportunities to assist in the achievement of business objectives and development needs.
Schroders has continued its partnership with Inmarkets to deliver online training via the Fincarta platform. This
‘e-Learning’ platform offers a comprehensive library of online courses on financial markets, diversity and regulation. Access to the e-Learning portal is available to all employees via the internet, allowing content to be viewed globally, including via home computers.
Through our Professional Qualifications Policy, we encourage all of our people to complete professional qualifications relevant to their role. In recognition of the employee investment in achieving such qualifications, we offer competitive educational assistance, which includes provision of financial support and study leave.
The sales development programme, which focuses on providing our client-facing employees with a formalised framework for the development of core skills, was successfully launched in 2010 and will continue to grow in 2011. The programme is available to all client-facing employees, of all levels of experience, globally, incorporating sales, product and relationship management roles.
Our key goal is to maintain market-leading standards and to ensure that these are consistently applied across our global network. This framework will also provide the basis for our recruitment and induction of new employees.
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Workplace
Our performance management process comprises of an annual performance appraisal against agreed objectives and our core values. Output from this performance process is used to inform decisions on remuneration, career development and progression.
Schroders is committed to internal progression to ensure that we retain our most talented people. We have a global role-based title structure to provide career paths to help our people develop and progress. In addition to strengthening the performance culture of the Group, the structure ensures greater flexibility for employees to move into new roles, taking on more responsibility as opportunities arise, reinforcing our meritocratic approach. All role descriptions are accessible on the intranet so that employees can gain access to information regarding the skills and experience required to undertake each role within the Company.
We actively promote high ethical standards. Concerns about behaviour or decisions that are perceived to be unethical can be raised by employees through our internal ‘whistleblowing’ process. Personal securities trading by employees is also regulated. Employees are not permitted to solicit or accept any inducements which are likely to conflict with their duties, and training is provided in relation to these issues and in relation to money laundering, terrorist finance, data protection and treating customers fairly.

The health and welfare of our people are very important to us. We promote high standards of health and safety at work and have a global Health and Safety Policy, implementing UK standards, which we expect all offices to follow unless their local legislation requires higher standards. The senior management team at each office location around the world is responsible for implementing this Policy, and this highlights our commitment to ensuring employees are provided with a safe and healthy working environment.
A comprehensive risk assessment programme is in place in the UK, which ensures that all employee activities, and any works carried out by subcontractors, are done so safely and without introducing any additional hazards into the working environment.
In the UK, we operate an integrated healthcare approach, whereby our private medical health provider and occupational health clinics work together to promote wellness amongst our employees.
We offer the following facilities, without charge:
– VDU eye screening;
– Flu and business travel vaccinations;
– Wellwoman and Wellman screening; and
– Private GP services.
Gym facilities are also provided at our Head Office in
London to encourage employees to enjoy a healthier lifestyle. Similar healthcare arrangements are also offered in many of our international offices.
In our London offices, a Sports and Social Committee organises monthly events, open to all employees.
There are a number of sports teams which play throughout the year, including football, hockey and basketball, as well as social events, such as cookery lessons, theatre trips, museum tours and team quiz events.
We recognise that workplace stress is a particularly important health and safety issue. We are committed to identifying and reducing workplace stress and offer workplace counselling and occupational health doctors to provide specialist advice on stress management.
We appreciate that individuals may, at different times in their lives, have various sensitive issues that they may need help with. In order to give support where we can,
Schroders offers a confidential counselling helpline in the UK. This provides employees and their dependants with access to a 24-hour, confidential counselling helpline service in respect of a variety of issues including stress, marital, legal and finance-related problems. This service is strictly private and confidential and there is no individual case feedback to Schroders.
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Environment
We measure our performance in terms of waste management, energy and water usage and remain committed to continuous improvement in this area and to the promotion of positive environmental practices.
During 2010, we continued to make improvements to help minimise our environmental impact and, measured against our baseline targets, for London we have made significant reductions to our overall carbon footprint.
In 2010, we were awarded the Green500 Gold Award for the second year running, in acknowledgement of our ongoing progress in reducing carbon emissions.
During the first three months of 2010 we were assessed against the Carbon Trust Standard and gained accreditation in March in recognition of the reduction in our carbon footprint over the past three years.
As set out in our Environmental Policy, and measured against our baseline year of 2007, our KPI target for 2012 is to reduce the amount of waste we produce by 50 per cent. and send less than 10 per cent. of our waste to landfill. In 2010 we exceeded these figures and to date we have reduced the amount of waste we produce by
62 per cent., with none of our waste being sent to landfill.
Waste recycled or used (per cent.)
08
09
82%
81%
10
50 60 70
83%
80 90
Waste generated (tonnes per employee)
100
We have improved our waste data measurement systems this year and historical data has been restated accordingly. In 2010, we have included the disposal of confidential waste for the first time. The amount of waste we produced in 2010 rose by 15 per cent. per head compared with 2009, primarily due to the addition of 20 tonnes of confidential waste.
We aim to reuse or recycle over 90 per cent. of our waste and reduce the amount that goes to landfill to less than 10 per cent.. Whilst the recycling figure for 2010 has marginally improved, up to 83 per cent., all waste not suitable for recycling was sent to incineration plants and used to generate electricity for the community.
08
09
10
0.00
0.05
0.10
0.15
0.15
0.18
0.20
0.23
0.25

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09
10
We have used the 2010 Guidelines to Defra/DECC’s
GHG Conversion Factors for Company Reporting to calculate CO
2
equivalent emissions (CO
2 e) relating to our consumption of electricity and gas. Energy usage is one of the most significant impacts our operations have on the environment and during 2010 we continued to manage our energy consumption, reducing it by
7 per cent. compared to 2009. Throughout 2010, our Head Office was supplied with 100 per cent.
‘renewable’ electricity, and our current contract runs until September 2011.
Schroders’ KPI target is to reduce the energy consumption of its London operations by 15 per cent. by 2012, measured against our baseline figure for 2007.
In 2010, we reached this target, reducing our energy consumption by 19 per cent. as compared to our baseline year of 2007.
Energy consumption MWh
■ Electricity ■ Gas
9,850.17
1,625.90
8,823.05
8,056.45
1,617.30
1,660.90
We are committed to the efficient use of water and encourage our employees to conserve water. Our consumption of piped water in London increased in
2010 by 2 per cent., due in part to an increase in the number of London employees. The amount of water consumed per employee has also slightly increased from 8.7m
3 per employee in 2009 to 8.8m
3 in 2010.
Schroders’ KPI target for water is to reduce consumption by 15 per cent. by 2012, measured against our baseline year of 2007. In 2010, we reached this target and to date our consumption of water has reduced by 17 per cent. as compared to our baseline year of 2007.
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Environment
In 2010, we continued to work with our major computer services provider to ensure a resilient IT Environmental
Policy. This included monitoring the waste outputs of all IT processes and investigating techniques to reduce waste streams whenever possible.
The manufacture of each desktop computer requires over 240 kilograms of fossil fuels, approximately ten times the weight of the computer itself. It is important that whenever possible, all IT hardware is refurbished and reused once its time at Schroders has ended.
At Schroders, all computers in the UK which have reached the end of their life and are refreshed have their disk drives wiped clean before being processed for refurbishment or reused by a specialist IT equipment recycler. All network equipment and other hardware is also disposed of in an ecologically friendly way.
Since the European Parliament directive on Waste
Electronic Equipment was incorporated into English law five years ago, the emphasis on the disposal of IT and communications equipment in a safe and efficient method has become a determining factor within the tendering process. As a result of this, we have an environmental awareness factor in our third party supplier selection process. This includes looking at the
‘green’ credentials of the supplier, which can be shown in many ways such as through awards won, recycling projects and processes in place, and external studies and valuations.

In our London offices, the NightWatchman software programme continues to place PCs into standby mode after 10pm each evening, reducing power consumption and consequently CO
2 e emissions. We estimate that the reduction in power consumed is 400kWh for each PC per annum. Through the NightWatchman programme, savings in the region of £25,000 to £30,000 and 120 tonnes of CO
2 e are made each year. In 2011, we will continue to virtualise our servers wherever possible and we are now investigating the environmental benefits of moving to IP telephony, where our expectations are that old ‘mainframe-sized’ hardware could be replaced with more efficient technology.
Procurement of environmentally friendly goods forms an increasingly large element of our environment management programme. When selecting suppliers, their approach to corporate responsibility forms a key part of the contract award process, and we continue to adopt a policy of active engagement with our key suppliers to minimise the environmental impact arising from their operations, both on and off site.
We work closely with our outsourced reprographics provider, Williams Lea, to ensure that their high management standards minimise the impact their services have on the environment.
During 2010, a review of paper was sanctioned with the primary objective of ensuring that we procure the most environmentally-friendly paper. The conclusion was that we would continue to utilise a Forest Stewardship
Council (FSC) approved sheet produced in an
ISO14001 accredited mill, with the option to use 100 per cent. recycled paper on specific print projects. To aid the reduction in paper usage, document scanning has been enabled on photocopiers, and we encourage employees to only print documents where necessary.
The default setting for all desktop printers has been set to double-sided, where possible. Additionally, following a successful pilot, the central reprographics team now produces approximately 26 per cent. of the volume of work in smaller A5 size, as well as encouraging dual image per page printing.
During 2010, our total consumption of paper increased by 6 per cent., as compared to 2009. Schroders’ KPI target is to reduce the use of paper by 15 per cent. against a baseline of 2007. In 2010 we reached a 35 per cent. reduction in the use of paper, as compared to 2007.
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Environment
Many employees in London travel to work by public transport. Cycle racks, showers and changing facilities are provided to encourage employees to cycle to work, as well as the Ride2work scheme (provided through
Flex benefits). Our preferred taxi supplier was awarded the Diamond award by Green500 in 2009 and 2010; their other awards include the BP Car and Van Fuel
Efficiency Awards 2009 and the Energy Saving Trust
‘Best Large Fleet 2008’.
Our Travel Policy encourages employees to use video conferencing as an alternative to business travel and its use has increased by 15 per cent. in
2010. In London, there was a 21 per cent. increase in business air travel in 2010, as compared to 2009.
Schroders’ KPI target is to reduce business air travel by 15 per cent. by 2012, as compared to 2007. In 2010 we achieved a 29 per cent. reduction in air travel as compared to our baseline year of 2007.
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We promote environmental awareness and initiatives via our Intranet, internal notices and email, and seek feedback from employees wherever possible. During
October, we held a ‘Corporate Responsibility Week’ in our London Head Office. The event had a strong environmental awareness focus, giving employees the opportunity to not only learn what they can do to help us achieve our objectives, but also what changes they can make to reduce their personal carbon footprint.
We participate in external performance benchmarking with organisations such as the Carbon Disclosure Project and the FTSE Group Responsible Investment Unit.
Our work with the Carbon Trust Standard has allowed us access to best practice advice, information on furthering our environmental performance and external verification of the steps we have taken and benefits derived.
We review the environmental performance of key service suppliers throughout the year and work closely with them to minimise the effects our operations have on the environment.
Since 2009, Schroders has worked towards making all large UK events as carbon neutral as possible and compliant with BS8901 – a British Standard written to encourage the production of sustainable events, which was prompted by the forthcoming 2012 ‘first green’
Olympic games.
To be compliant with BS8901, the event organiser must engage all stakeholders, such as the venue, caterer and technical crews, in the planning stages of an event. They then need to work together to produce a management policy, identify issues, create objectives and set key performance indicators and targets which focus on the sustainability of all the event components.
Schroders is proud to be leading the way in corporate event sustainability, which now includes small and large conferences, as well as private evening receptions at venues such as Fortnum & Mason and The Natural
History Museum. Our compliance with BS8901 has gained media coverage and been showcased at industry related events.
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We encourage all employees to participate in the community and in civic and charitable causes. We believe that involvement is valuable to both the community and the individual as it can assist in personal development.
Our charitable giving is focused on employee choice, with the Group ‘matching’ employee donations and sponsorship up to £2,000 per annum. In 2010, donations increased to £1.1 million (2009: £0.6 million). This reflected the improvement in our financial performance and an increase in the number of discretionary donations. The discretionary donations, largely given in memory of deceased employees, were to charities with which they were closely involved, including
St Paul’s Way School and St Martin-in-the-Fields.
As well as making financial donations, employees are encouraged to spend time working in the community.
Employees are able to take up to 15 hours’ paid leave per year to provide volunteer services. A wide variety of charities are supported this way, as individuals give their ‘Schroders time’ to charities with which they have a personal connection.
In addition to our successful matched-giving scheme, we expect to make further discretionary donations in
2011, which will be focused on charities that operate in the area of social welfare.
A number of our offices operate payroll giving schemes, of which the UK scheme is the largest, with 22 per cent. (2009: 21 per cent.) of employees participating.
Charitable donations by the firm of £220,000 were made through this scheme (2009: £202,000) and we again received the Payroll Giving Quality Mark Gold
Award in 2010, which recognises that over 10 per cent. of employees donated money to charity via payroll.
In London, Schroders is a corporate supporter of the
Hackney Schools’ Mentoring Programme (HSMP), established in 1996 by the East London Business
Alliance and Hackney Learning Partnerships.
Our employees continue to mentor teenage students in the London Borough of Hackney with the aim of increasing students’ self confidence and improving their academic performance. The intention is to allow them to gain experience of the working world and broaden their aspirations.
Throughout 2010, we continued to support a number of City-based charities, both in London and around the world. Employees not only acted as mentors, but we also ran workshops in our offices, such as ‘An introduction to the City’ to help young people understand the opportunities available to them in the City of London.
Overseas, our employees also participate in local volunteering schemes and programmes.

Employees in Singapore prepare for a charity race Members of the poppy-selling team in London
A team from Japan finish a 100km endurance hike Volunteers rejuvenate the garden at a hospice
Volunteers from London help teenage students with a project Cyclists complete a two-day race in Singapore
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