Canada Responsible Investment Responsible Investment Quarterly Report

Any investment policies, processes or activities described in this report relate to investment strategies managed from the United Kingdom by Newton Investment Management Limited. This report does not apply to investment strategies managed from the United States by Newton Investment Management North America LLC.

Q4 2022 Spotlight on

What Does Net Zero Mean for Portfolios?

WHAT DOES NET ZERO MEAN FOR PORTFOLIOS?

We discuss how we are navigating net zero in our portfolios to achieve real-world decarbonization.

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Highlights from Q4 2022

  • We voted at
    156
    Annual General Meetings
    +
    134
    Extraordinary General Meetings
    on behalf of our clients
  • We engaged with
    44
    issuers
    for the purpose of raising ESG concerns or seeking further information.

  • Examples of engagement with companies included matters such as:

    • product access
    • climate change
    • waste management
    • human capital management
    • food and nutrition
    • supply-chain management
    • raw materials sourcing and use
    • compensation
    • data security
    • board effectiveness
    • diversity
    • strategy
 

Voting Profile: Q4 2022

During the quarter, we exercised our clients’ voting rights at a total of 290 shareholder meetings.

Across all regions, votes were instructed against management recommendations on 312 separate resolutions, which equated to 42% of the 290 meetings.

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1 In favor of management on all resolutions.
2 Against management on one or more resolutions. Including abstentions and withhold votes where there was no option to vote against.
3 Took no action owing to shareblocking or sanctions considerations.

3

took no action3

164

in favor of management1

0

abstained

123

against management2

Key Issues of Concern

ESG quality reviews

We consider material and relevant ESG risks, issues and opportunities of all companies our global sector analysts are considering recommending for investment.

Companies’ progress in managing climate risks

Companies’ progress on human capital management

Insufficient independence on boards or key committees

US executive compensation arrangements not being aligned sufficiently with performance

Share issuances leading to excessive dilution for existing shareholders

US company auditors serving for multiple decades

Article amendments which would limit or reduce shareholder rights

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Quality

Take a Closer Look

Finding opportunities for positive change and sustainable growth in emerging markets
Blog

Making Sense of Divergent Third-Party ESG Data Ratings

Third-party ESG ratings play an important role in asset management, but we believe their application needs to be…
Alexander Parkinson
January 31, 2023
Responsible investment, Sector research, Sustainable
Investing in climate adaptation
Audio

Investing in Climate Adaptation

How could scalable technology help mitigate the impacts of climate change?
January 26, 2023
Industry views, Sector research, Sustainable
Nutrition and health: what are the investment implications?
Article

Nutrition and Health: What Are the Investment Implications?

Why we believe nutrition and health should be key considerations for investors.
January 19, 2023
Responsible investment
Responsible investment quarterly report
Being responsible

Responsible Investment Report Archive

Quarterly responsible investment reports covering earlier periods.

Important Information

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 Clients Only. Issued by Newton Investment Management North America LLC (“NIMNA”). NIMNA is a registered investment adviser with the US Securities and Exchange Commission (“SEC”) and subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”). The Firm was established in 2021,comprised of equity and multi-asset teams from an affiliate, Mellon Investments Corporation. The Firm is part of the group of affiliated companies that individually or collectively provide investment advisory services under the brand “Newton” or “Newton Investment Management” (“Newton”). Newton currently includes NIMNA and Newton Investment Management Ltd. (“NIM”).

This document is provided for general information only and should not be construed as investment advice or a recommendation. You should consult with your advisor to determine whether any particular investment strategy is appropriate. Statements are current as of the date of the material only. Any forward-looking statements speak only as of the date they are made, and are subject to numerous assumptions, risks, and uncertainties, which change over time. Actual results could differ materially from those anticipated in forward-looking statements.

This document may not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or not authorised. Certain information contained herein is based on outside sources believed to be reliable, but their accuracy is not guaranteed. The opinions expressed in this document are those of Newton and should not be construed as investment advice.

In Canada, NIMNA is availing itself of the International Adviser Exemption (IAE) in the following Provinces: Alberta, British Columbia, Ontario and Q 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.

Any reference to a specific security, country or sector should not be construed as a recommendation to buy or sell investments in those securities, countries or sectors. Please note that portfolio holdings and positioning are subject to change without notice.

Newton manages a variety of investment strategies. Whether and how ESG considerations are assessed or integrated into Newton’s 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.