Defining Our Approach to Net Zero

The sixth and latest report by the United Nations’ Intergovernmental Panel on Climate Change (IPCC) in August 2021 warned that the world would reach 1.5 degrees Celsius of warming by 2030 under all scenarios examined. At the COP26 climate summit last November, there was much talk but still a relative dearth of concrete detail about how net-zero carbon emissions would be achieved. What is clear though is that if we are to collectively hit the pledged net-zero targets, it will require an extraordinary and global effort, and asset managers will have a crucial role to play.

Our paper addresses the following issues:

• The stark realities of climate change today…and tomorrow
• Why present-day pledges may not be sufficient for limiting emissions
• Why we choose real world decarbonization over portfolio decarbonization
• The need to support emerging markets in the energy transition
• Why we need a holistic approach including government and genuine cross-company support

Hear our Global Head of Sustainable Investment Therese Niklasson discuss our net-zero approach

Our sustainable investment strategies seek a balance between the current and future needs of stakeholders. They aim to encourage a better allocation of capital that leads to the generation of sustainable risk-adjusted returns for clients alongside improved long-term global outcomes for society and the environment.

We are here to help with any questions you may have about our sustainable investment solutions.

Please contact our consultant relations and business development team:

T: +1 212 922 7777
E: info@newtonim.com

¹ 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.
² ‘Financed emissions’, global assets under management’ or ‘AUM’ refers to the combined assets under management of Newton Investment Management Ltd and Newton Investment Management North America LLC.

Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.

For institutional investors only.

Issued by Newton Investment Management North America (“NIMNA”). NIMNA is a registered investment adviser and subsidiary of The Bank of New York Mellon Corporation (“BNY MELLON”). ‘Newton’ and/or the ‘Newton Investment Management’ is a corporate brand which refers to the following group of affiliated companies: Newton Investment Management Limited and Newton Investment Management North America, LLC.

Newton manages a variety of investment strategies. Whether and how ESG considerations are assessed or integrated into those strategies depends on the asset classes and/or the particular strategy involved, as well as the research and investment approach of each Newton firm. ESG may not be considered for each individual investment and, where ESG is considered, other attributes of an investment may outweigh ESG considerations when making investment decisions.

In Canada, Newton Investment Management North America LLC is availing itself of the international Adviser Exemption (IAE) in the following Provinces: Alberta, British Columbia and Manitoba. The IAE is in compliance with National Instrument 31-1-3, Registration Requirements, Exemptions and Ongoing Registrant Obligations.