UK Institutional Responsible investment Responsible investment quarterly report

Q4 2022 spotlight on

Spotlight

WHAT DOES NET ZERO MEAN FOR PORTFOLIOS?

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

Read more

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.

Read more

1 In favour 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 share blocking.

3

took no action3

164

in favour 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 board 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

Read more
Quality

Take a closer look

The journey to net zero in fixed income
Blog

The journey to net zero in fixed income

Bond investors can play a pivotal role in moving the planet to a lower-carbon way of life.
Scott Freedman
04 January 2023
Fixed income, Sustainable
Finding opportunities for positive change and sustainable growth in emerging markets
Article

Finding opportunities for positive change and sustainable growth in emerging markets

Why we believe emerging markets offer the most exciting backdrop for sustainable investing in the world today.
06 December 2022
Emerging markets & Asia, Responsible investment
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.
30 November 2022
Responsible investment, Sustainable
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.

Any reference to a specific security, country or sector should not be construed as a recommendation to buy or sell investments in those 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.