NEW
YORK, June 8, 2022 /PRNewswire/ -- Newton
Investment Management Group (Newton), part of BNY Mellon Investment
Management, has published its targets towards the goal of achieving
net zero emissions across its investment portfolios in the context
of its commitment to the Net Zero Asset Managers
initiative.
Newton has been a long-standing supporter of the Paris Agreement
on climate change and believes that it is critical that its
financed emissions (the greenhouse gas emissions associated with
the investments it makes on behalf of its clients) are addressed
through transition plans. It has therefore aligned itself with the
Science Based Targets initiative approach which involves a
commitment to an interim target of 50% of financed emissions
covered by credible transition plans by 2030, and 100% of its
financed emissions covered by 2040.
While Newton's final target of having 100% of its financed
emissions covered by credible transition plans by 2040 necessarily
implies that all of its global assets under management (AUM) will
be committed to net zero emissions by that point, currently 67% of
its AUM (as distinct from financed emissions) are subject to the
initiative.1 Cash, derivatives, sovereign bonds and
certain quantitative solutions within the multi-asset area are
excluded until better data and methodologies emerge to address
them. Importantly, the firm will focus on ensuring that financed
emissions (rather than simply AUM) are covered by net-zero
plans.
Commenting on the targets, Euan
Munro, Chief Executive Officer at Newton Investment
Management, said: "Failure to address climate change will have
direct impacts on communities, livelihoods, peace and stability and
quality of life, as well as far-reaching implications for people's
investments and savings. A healthy and vibrant world is ultimately
a world in which investment goals can better be achieved, and in
that context net zero is a vital commitment for us."
Therese Niklasson, Global Head
of Sustainable Investment at Newton Investment Management,
added: "We contribute to meeting the net zero challenge by engaging
with clients and the issuers of our portfolio holdings, while
taking an investment-led approach in aiming to allocate
increasingly to those companies and regions that are demonstrating
a commitment to real-world decarbonization. Achieving net zero
involves the whole Newton investment team, including our executive
leadership, with our investment-led approach at the heart of
everything we do."
Three core points
As an active manager, Newton's focus in setting its targets has
been to ensure it invests with purpose and aligns those targets
with three core points:
- Decarbonization must take place in the real
world. Climate risk is a real-world problem, and we will
not seek artificial 'decarbonization' through changes to asset
allocation decisions. Our investment-led focus is on regional and
corporate transition plans which result in real-world
decarbonization that addresses the climate-change jeopardy faced by
all stakeholders. Portfolio decarbonization is not the same as
investing for decarbonization.
- Engagement around companies' transition plans. This
means using Newton's role as an active manager to establish and
manage a focused and effective engagement program to ensure that
companies' plans are credible and achievable, not just
scientifically robust. In Newton's engagement activity, it will
recognize that there are varying regional and industry pathways to
net zero, and that neither the transition to net zero nor portfolio
decarbonization is linear in nature. Newton seeks to prioritize
engagements with high-emitting companies as they will be the ones
whose transition to net zero will be most difficult (but of most
significance in achieving the net zero goal).
- Investment should be made in solution
providers. There are myriad new investment opportunities
aligned with delivering a successful energy transition. Newton
already has investments in several solution providers linked to the
transition.
Progress on the net zero targets will be monitored through
Newton's newly formed sustainability committee, whose membership
comprises senior individuals (including executive committee
members) from across the business, and will be published in its
annual Task Force on Climate-Related Financial Disclosures report,
in addition to other formal reporting platforms. The approach will
adapt and develop over time as science, policy responses and
management approaches evolve.
Notes to editors
Unless otherwise specified herein, all information sources by
BNY Mellon as of June 8, 2022. This
material is issued by Newton Investment Management, a part of BNY
Mellon Investment Management, to members of the press and media and
the information contained herein should not be construed as
investment advice or a recommendation of any investment manager or
strategy. Statements in this press release that are not historical
facts are "forward-looking statements" within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995. When used in
this press release, words or phrases generally written in the
future tense and/or preceded by words such as "will," "may,"
"could," "expect," "believe," "anticipate," "intend," "plan,"
"seek," "target," or other similar words are forward-looking
statements. These forward-looking statements are based upon current
beliefs and expectations and are subject to a number of known and
unknown risks, uncertainties and other important factors that could
cause actual results and outcomes to differ materially from any
future results or outcomes expressed or implied by such
forward-looking statements.
About Newton Investment Management
Group
"Newton Investment Management Group" is a corporate brand which
refers to the following group of affiliated companies: Newton
Investment Management Limited (NIM) and Newton Investment
Management North America LLC (NIMNA). In the United Kingdom, NIM is authorised and
regulated by the Financial Conduct Authority ('FCA'), 12 Endeavour
Square, London, E20 1JN, in the
conduct of investment business. Registered in England no. 01371973. NIM and NIMNA are both
registered as investment advisors with the Securities &
Exchange Commission ('SEC') to offer investment advisory services
in the United States. NIM and
NIMNA's investment businesses in the
United States is described in Form ADV, Part 1 and 2, which
can be obtained from the SEC.gov website or obtained upon request.
Both firms are indirect subsidiaries of The Bank of New York Mellon
Corporation ("BNY Mellon").
Newton Investment Management Group provides discretionary and
non-discretionary investment advice to institutional clients,
including US and global pension funds, sovereign wealth funds,
central banks, endowments, foundations, insurance companies,
registered mutual funds, other pooled investment vehicles and other
institutions. Its current office locations include London, Boston, New
York and San Francisco.
Assets under management estimated as $130.9bn USD / £99.4bn GBP as at 31 March 2022, including combined assets managed
by Newton Investment Management Limited and Newton Investment
Management North America LLC. In addition, AUM for Newton
Investment Management Group includes assets of bank-maintained
collective investment funds for which NIM or NIMNA has been
appointed sub-advisor, where Newton Investment Management Group
personnel act as dual officers of affiliated companies and assets
of wrap fee account(s) for which Newton Investment Management Group
provides sub-advisory services to the primary manager of the wrap
program.
News and other information about Newton is available at
www.newtonim.com and via Twitter: @NewtonIM
About BNY Mellon Investment
Management
BNY Mellon Investment Management is one of the world's largest
asset managers, with $2.3 trillion in
assets under management as of March 31,
2022. Through an investor-first approach, BNY Mellon
Investment Management brings to clients the best of both worlds:
specialist expertise from eight investment firms offering solutions
across every major asset class, backed by the strength, stability,
and global presence of BNY Mellon. Additional information on BNY
Mellon Investment Management is available on
www.bnymellonim.com.
BNY Mellon Investment Management is a division of BNY Mellon,
which has $45.5 trillion in assets
under custody and/or administration as of March 31, 2022. BNY Mellon can act as a single
point of contact for clients looking to create, trade, hold,
manage, service, distribute or restructure investments. BNY Mellon
is the corporate brand of The Bank of New York Mellon Corporation
(NYSE: BK). Additional information is available on
www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our
newsroom at www.bnymellon.com/newsroom for the latest company
news.
1 Global AUM refers to the combined assets under
management of Newton Investment Management Ltd and Newton
Investment Management North America LLC
Contact:
Courtney Woolston
(212) 635-6027
Courtney.Woolston@bnymellon.com
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SOURCE BNY Mellon Investment Management