The Schroder ISF Circular Economy fund and Schroder ISF Sustainable Infrastructure fund will be managed by Jack Dempsey and Ashley Thomas, respectively.
The Circular Economy fund will invest in firms which contribute to the transition to a circular economy, seeking to decouple economic growth from resource consumption, a key sustainability and economic focus given increasing resource deficits.
Dempsey said that the “prize” for firms that can close the gap between what the planet produces and its consumption is estimated to be $25trn worth of economic growth by 2050.
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“Entire industries have the potential to be transformed. For example, clothing resales are expected to be bigger than fast fashion by 2029, and, as plastics come under increased scrutiny from consumers and regulators, more sustainable materials can gain market share,” he said.
“Through SISF Circular Economy, investors will be able to tap into a growing market for sustainable products and services, while also contributing to a more resilient and resource-efficient economy. This is vital since we see no path to net zero without a circular economy.”
Meanwhile, the Sustainable Infrastructure fund looks to invest in firms that help to advance the development of global sustainable infrastructure assets, such as energy utilities, renewable energy, water and waste utilities, rail and communications infrastructure.
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Thomas said the Organisation for Economic Co-operation and Development (OECD) has estimated that $6.9trn of annual investment will be needed by 2030 to meet climate and development objectives in infrastructure.
“To reach national climate goals, grid investment needs to double by 2030 with more than 80m km of grid length required to be built or replaced by 2040 – the equivalent of the entire existing global grid,” he said.
“Critical investment gaps also exist when it comes to new water resources and wastewater treatment, rail to support the decarbonisation of transport, and the telecommunication sector.”
