*Newton manages a variety of investment strategies. How ESG analysis is integrated into Newton’s strategies depends on the asset classes and/or the particular strategy involved. Newton does not currently view certain types of investments as presenting ESG risks and opportunities and believes it is not practicable to evaluate such risks and opportunities for certain other investments. Where ESG is considered, other attributes of an investment may outweigh ESG considerations when making investment decisions.

The environment and climate change

Newton is a signatory to the Net Zero Asset Managers (NZAM) initiative,* an international group of asset managers committed to working in partnership with their clients to support the goal of net-zero greenhouse-gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 or below 2 degrees Celsius, and to support investment aligned with net-zero emissions by 2050 or sooner, subject to client mandates and regulatory requirements.

Specifically, we have set an interim target of having 50% of our financed emissions (of the assets in scope) covered by credible transition plans by 2030, and a final target of having 100% of our financed emissions covered by 2040. This is dependent on government and policy support.

Our approach, in common with that taken by a number of our industry peers, follows the methodology of the Science Based Targets initiative for financial institutions. This clear, science-based approach focuses on how much and how quickly companies need to reduce their carbon emissions to prevent the worst effects of climate change. We endorse this approach over those that promote a linear year-on-year carbon-intensity reduction path, as we believe this is a more credible approach to meeting our net-zero goals.

Newton Investment Management Limited was also an early adopter of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, a leading global framework for the reporting of climate-related information. We have been providing disclosures in line with these recommendations since 2019.

Newton has also taken various steps to reduce its own carbon footprint. Via our parent company, BNY Mellon, we use a three-part approach to achieving carbon neutrality: reducing energy use and related greenhouse-gas emissions; procuring renewable electricity; and using carbon offsets to compensate for the remaining emissions in our footprint. BNY Mellon has committed to maintain carbon neutrality in its operations through to 2025,** and has also set a greenhouse-gas emissions reduction target in line with a well-below 2 degrees Celsius science-based target methodology.

*Newton Investment Management Japan is not in the NZAM scope for Newton.
**For Scope 1 and Scope 2 greenhouse-gas emissions, including data centres, as well as Scope 3 business travel emissions through the use of renewable energy and carbon offsets.

Resource conservation

With our parent company BNY Mellon, we have implemented a number of energy-efficiency projects such as lighting control and heating, ventilation, and air conditioning (HVAC) upgrades.

We are committed to efficient water use, and plan to further reduce the use of water in our building operations by 2025. With BNY Mellon, we issued a goal to divert 80% of our waste from landfills, and plan to divert 100% of technology equipment from landfills by 2025. We have also worked to reduce our paper usage, and have comprehensive paper recycling and offset schemes in place.

goals include:
of waste away from landfills
of technology equipment away from landfills

The wider community

We want to engage actively within our communities to help deliver long-term positive outcomes. At a corporate level, we have a focus on diversity, equity and inclusion (DE&I), financial education and environmental initiatives, in addition to supporting our staff-nominated charities. Many employees also want to support local organisations and charities they have a particular affiliation with.

Newton is a founding supporter of the charity The Centre for Financial Capability, and is a founding member of its ground-breaking collaborative project KickStart Money, which aims to take financial education to almost 20,000 UK primary school children, catalysing a movement to build a savings culture for the future.

Under BNY Mellon’s Community Impact Programme, our employees are entitled to three paid days of volunteering every year. We have a matching policy for individual donations and fundraising.

Wider community

BNY Mellon – Enterprise ESG

The BNY Mellon Code of Conduct can be viewed at:

View the BNY Mellon Code of Conduct.

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.