What is responsible investment?
The broad array of terms and jargon used to describe various forms of responsible investing can be confusing. As purposeful and active owners, guided by our clients’ objectives, we see it as our responsibility to fully understand each asset we invest in. Therefore, in addition to financial measures, we evaluate factors such as environmental impacts, social standards, and the effectiveness of people in charge. We believe this approach allows us to better manage risk and make more informed investment decisions.
Meet the team
Unlike some asset managers who keep their responsible investment analysts separate from the wider investment team, our dedicated responsible investment team is fully integrated in our investment process, working alongside our conventional financial analysts to inform our investment decisions.
Head of sustainable investment
Andrew is responsible for developing our sustainable investment offering and communicating our approach to responsible investment to our global client base.
Head of responsible investment
Ian is responsible for Newton’s approach to ESG, including corporate governance and wider stewardship matters, and how these are considered throughout Newton’s investment process.
Head of ESG research
Lloyd is head of ESG research at Newton. His role includes setting responsible investment philosophy, overseeing the ESG research process as well as conducting research and engagement on environmental, social and governance issues.
Responsible investment analyst
Sakshi undertakes research and engagement on ESG issues with global companies, as well as voting and reporting to clients.
Sakshi is employed by BNY Mellon India, an outsourced service provider to Newton Investment Management.
ESG data analyst
Alex leads on developing and managing Responsible Investment data solutions. He also contributes to thematic research.
Responsible investment analyst
Rebecca undertakes research and engagement on ESG issues with global companies, as well as voting and reporting to clients.
Responsible Investment analyst
Parag undertakes research and engagement on ESG issues with global companies, as well as voting and reporting to clients.
Parag is employed by BNY Mellon India, an outsourced service provider to Newton Investment Management.
Tanushree’s responsibilities include the exercise of voting rights, engaging with companies and reporting to clients.
Tanushree is employed by BNY Mellon India, an outsourced service provider to Newton Investment Management.
Our ESG approach
At Newton, we integrate ESG research in our security selection process across all investment strategies, as we believe that taking ESG factors into account can lead to better investment decisions. Our ESG process is founded on three pillars: in-depth ESG security analysis, active company engagement, and active proxy voting.
We aim to identify ESG-related risks and opportunities to ensure that challenges are identified and managed. This applies not only to equities, but also in a fixed-income context. We consider ESG issues when looking at sovereign risk, as well as across the credit spectrum from investment grade to high yield. Every security which our sector research analysts wish to recommend must have an in-depth ESG quality review completed by our responsible investment team.
Active engagement with the companies we invest in allows us to monitor changes in management processes, remuneration and social and environmental issues. By taking a proactive approach to our engagement, we can work with the companies we invest in to increase the sustainability of their businesses over time. We also take an active role in the external ESG debate across the wider industry, and help to shape policy and thought leadership.
Engagement in practice
This series explains why we believe active engagement can drive better investment decisions, and shares some specific examples of our engagement work.
We have taken a rigorous and purposeful approach to our proxy voting since the 1970s, and are proud to exercise votes across all shares we hold for our clients, globally. We take active case-by-case decisions for each resolution item*. This dedication has been recognised by ShareAction** as proof that we have ‘rebel genetics’ within our responsible ranks.
* Only where we recognise a potential material conflict of interest do we follow the advice of a voting service provider
** ShareAction Investor Report, May 2018
Our stewardship in action
How do we hold ourselves to account?
Being a responsible and purposeful owner, on behalf of our clients, is not enough on its own. It is vital to encourage the companies in which we invest to provide better disclosure on their management of ESG risks and opportunities, but it is also important to explore what challenges such as climate change will mean for our clients’ investments and our own assets. This is why we became one of the first investment management firms to publicly disclose our environmental impact through our Task Force on Climate-related Financial Disclosures report in November 2018. In this context, we have taken various steps to reduce our own carbon footprint, such as buying only renewable energy and reducing our consumption of single-use plastics. We also place sustainability, education and diversity at the core of the projects we sponsor within the wider community.
Task Force on Climate-related Financial Disclosures (TCFD) report
How we consider climate-related risks and opportunities for our business and our clients’ investments.