Making the grade

At Newton, we are committed to responsible investment and stewardship, which is why we have been a signatory to the UN Principles for Responsible Investment (PRI) since 2007.

The PRI is 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 over 2,300, and we are proud to have been a signatory for over a decade.

Source: https://www.unpri.org/about-the-pri

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, and our role as responsible owners. We are very proud that, in the latest PRI annual assessment report for 2019, we have been awarded an A+ rating overall for the third consecutive year. It is important to us that our credentials in responsible investment are independently verified, and confirmed in the consistently high ratings we have achieved.

We are pleased to have been awarded the highest rating possible (A+) in all five areas assessed, particularly in a year in which the UN PRI has been increasing the expectations required of signatories in achieving these top ratings. Only 25.5% of all respondents and 24.5% of asset managers received an overall A+ rating, with A+ scores strongly outperforming the median score in all categories.

However, our commitment to responsible investment is not about ticking boxes. We are committed to responsible investment because we think it leads to better investment decisions. We are pleased that the PRI has independently agreed that our responsible investment practices meet its highest standards.

Authors

Rebecca White

Global ESG integration lead