The Environment and Climate Change

We welcome and support the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, not only as a means of gaining better transparency on climate-related risks to investments, but also as part of a wider movement to limit global warming to well below 2 degrees Celsius. This is why Newton Investment Management Ltd (NIM) became one of the first investment management firms to publicly disclose its environmental impact through its first TCFD report in November 2018.

Newton is a signatory to the Net Zero Asset Managers initiative, an international group of asset managers committed to supporting the goal of net-zero greenhouse-gas emissions by 2050 or sooner, in line with global efforts to limit global warming to 1.5 degrees Celsius.

Specifically, we have set an interim target of having 50% of our financed emissions covered by credible transition plans by 2030, and a final target of having 100% of our financed emissions covered by 2040. While all our assets are committed in the long run, this is not a race to align assets under management with net zero, but rather a focus on aligning financed emissions with net-zero pathways.

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.

We have also taken various steps to reduce our 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.

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.

2025
goals include:
80%
of waste away from landfills
100%
of technology equipment away from landfills

The Wider Community

Newton Investment Management Ltd 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, catalyzing a movement to build a savings culture for the future.

We also support various organizations and activities that advance the quality of life where our employees work and live. Under BNY Mellon’s Community Impact Program, 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 – Putting the Future First<sup>SM</sup>

The BNY Mellon Code of Conduct can be viewed at:

View the BNY Mellon Code of Conduct.