Our approach to climate-related risk and opportunities.
This report explains how Newton Investment Management Ltd, as a long-term active investment manager, analyses and manages climate-related risks and opportunities both in its clients’ investments, and across its business. It outlines our views on climate change, as well as describing our approach to governance, strategy and risk management. We also provide details of our own carbon footprint and our efforts to further reduce our operational emissions. This underlines our belief that companies should disclose climate-related financial information and take action in response to this emergency.
What's in the report
Read our Task Force on Climate-related Financial Disclosures (TCFD) report to find out more about:
- Climate science and climate action
- External perspectives on the science and its implications
- Our approach to governance
- Strategy – how we manage climate-related risks and opportunities in our clients’ portfolios
- Metrics and targets
Newton’s story is one of purpose – to improve people’s lives by investing in a way that strives to deliver attractive outcomes to our clients and to help foster a healthy and vibrant world for all. We live in a world in flux. Deep and complex changes are driving opportunities and threats for investors and the world as a whole that are linked to powerful environmental and social forces.
Notwithstanding the continuing Covid-19 pandemic, few threats are more pressing for the world than that posed by unmitigated climate change. While it represents a major systemic risk to financial markets, the consequences run far beyond mere economic impacts and potentially threaten life on the planet as we know it. As a consequence, in March 2021, Newton joined the Net Zero Asset Managers initiative, which to date represents over US$37 trillion of assets managed by 87 global asset managers committed to supporting the goal of net-zero greenhouse gas emissions by 2050 or sooner. We recognise that urgent action is needed now, as to achieve a net-zero world by 2050 requires that global greenhouse-gas emissions must fall by 45% from 2010 levels by 2030, according to the Intergovernmental Panel on Climate Change (IPCC).
By joining the initiative, we commit to work with our clients to help fulfil their net-zero ambitions and to navigate portfolios through the complex energy transitions that are unfolding.
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.