How has Newton fared in the latest United Nations Principles for Responsible Investment (PRI) annual assessment ratings?
- Newton has been a signatory of the United Nations’ Principles for Responsible Investment (PRI) since 2007.
- We are required to report annually to the PRI, and are assessed on our approach to, and implementation of, ESG integration throughout our investment process, and on our role as responsible owners.
- For the fourth consecutive year, we have been awarded A+ overall.
At Newton, we have made a long-term commitment to responsible investment and stewardship, which is why we were early signatories to the United Nations’ Principles for Responsible Investment (PRI) back in 2007.
The PRI acts as an independent, global proponent of responsible investment, and works with its signatories to better understand and encourage the integration of environmental, social and governance (ESG) considerations into investment and stewardship decisions. Since the launch of the PRI in 2006, it has grown from 100 signatories to almost 2,500, and we are proud to have been a signatory for the last 13 years.
Just to recap, signatories to the PRI commit to adopt the following six principles for responsible investment:
- We will incorporate ESG issues into investment analysis and decision-making processes
- We will be active owners and incorporate ESG issues into our ownership policies and practices
- We will seek appropriate disclosure on ESG issues by the entities in which we invest
- We will promote acceptance and implementation of the principles within the investment industry
- We will work together to enhance our effectiveness in implementing the principles
- We will report on our activities and progress towards implementing the principles
As part of our commitment to the PRI, we are required to report annually on our approach to, and implementation of, ESG integration throughout our investment process, as well as on our role as responsible owners. We are pleased to reveal that in the latest PRI annual assessment report for 2020, we have once again been awarded an A+ rating overall, for the fourth consecutive year. Only 29% of investment managers received an overall A+ rating in the latest report.
We have also been awarded the highest rating possible (A+) in all five areas assessed, with Newton’s A+ scores strongly outperforming the median score across all categories.
The percentage of investment managers who also received an A+ rating for the modules that we responded to were as follows:
- Listed Equity – Active Ownership: 9%
- Listed Equity – Incorporation (refers to integration of ESG analysis): 23%
- Fixed Income – SSA (sovereign, supranational and agency bonds): 16%
- Fixed Income – Corporate Financial: 11%
- Fixed Income – Corporate Non-Financial: 11%
Our PRI Summary Scorecard 2020
We are pleased that the PRI has independently agreed that our responsible investment practices meet its highest standards. It is important to us that our credentials in responsible investment are independently verified, and confirmed in the consistently high ratings we have achieved across all categories. However, our long-time commitment to responsible investment is more than a box-ticking exercise, and we will continue to work hard to be responsible stewards of our clients’ capital.
Any reference to a specific security, country or sector should not be construed as a recommendation to buy or sell this security, country or sector. Please note that strategy holdings and positioning are subject to change without notice.
This is a financial promotion. Issued by Newton Investment Management Limited, The Bank of New York Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Newton Investment Management Limited is authorized and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN and is a subsidiary of The Bank of New York Mellon Corporation. 'Newton' and/or 'Newton Investment Management' brand refers to Newton Investment Management Limited. Newton is registered in England No. 01371973. VAT registration number GB: 577 7181 95. Newton is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940. Newton's investment business is described in Form ADV, Part 1 and 2, which can be obtained from the SEC.gov website or obtained upon request. Material in this publication is for general information only. The opinions expressed in this document are those of Newton and should not be construed as investment advice or recommendations for any purchase or sale of any specific security or commodity. Certain information contained herein is based on outside sources believed to be reliable, but its accuracy is not guaranteed. You should consult your advisor to determine whether any particular investment strategy is appropriate. This material is for institutional investors only.
Personnel of certain of our BNY Mellon affiliates may act as: (i) registered representatives of BNY Mellon Securities Corporation (in its capacity as a registered broker-dealer) to offer securities, (ii) officers of the Bank of New York Mellon (a New York chartered bank) to offer bank-maintained collective investment funds, and (iii) Associated Persons of BNY Mellon Securities Corporation (in its capacity as a registered investment adviser) to offer separately managed accounts managed by BNY Mellon Investment Management firms, including Newton and (iv) representatives of Newton Americas, a Division of BNY Mellon Securities Corporation, U.S. Distributor of Newton Investment Management Limited.
Unless you are notified to the contrary, the products and services mentioned are not insured by the FDIC (or by any governmental entity) and are not guaranteed by or obligations of The Bank of New York or any of its affiliates. The Bank of New York assumes no responsibility for the accuracy or completeness of the above data and disclaims all expressed or implied warranties in connection therewith. © 2020 The Bank of New York Company, Inc. All rights reserved.
In Canada, Newton Investment Management Limited is availing itself of the International Adviser Exemption (IAE) in the following Provinces: Alberta, British Columbia, Ontario and Quebec and the foreign commodity trading advisor exemption in Ontario. The IAE is in compliance with National Instrument 31-103, Registration Requirements, Exemptions and Ongoing Registrant Obligations.