Schroders, the global asset management firm, has teamed up with Cornell University’s Global Labor Institute (GLI) to unveil a new stewardship framework aimed at strengthening corporate resilience in sectors most vulnerable to climate change. The initiative targets industries such as apparel, food, and construction, where physical climate risks like extreme heat and flooding are driving up investment risk and threatening long-term financial stability.
The new guidelines, based on joint research, urge companies and investors to prioritize adaptation over relocation—especially in global supply chains. Strategies include improving infrastructure, protecting workers from climate-related health hazards, and ensuring sustainable sourcing practices. The framework also calls for enhanced financing and support for suppliers in climate-exposed regions.
Schroders and Cornell’s analysis reveals that the apparel sector could suffer a 5% or greater decline in operating profits due to extreme weather, with key producer nations facing up to $65 billion in export losses by 2030.
“Extreme weather caused by climate change poses financially material risks for many brands and sectors,” said Katie Frame, Active Ownership Manager at Schroders.
The framework is already being integrated into Schroders’ engagement with apparel companies, with plans for expansion to other high-risk sectors in the near future. The overarching aim is to help investors safeguard portfolio performance while encouraging companies to build climate-resilient operations.
