Many investors have asked how we give investors the option to incorporate environmental, social and governance (ESG) capabilities into NB CDI™ portfolios. In this piece, we provide a brief overview of that process.

Neuberger Berman’s ESG capabilities allow NB CDI™ clients to select their preferred customization as part of the account opening process. We offer the following ESG options:

Policy-Based Exclusions

Policy-based exclusions are avoidance screens that restrict investments in certain companies due to their behaviour or involvement in specified industries. Clients can select from over 60 pre-defined policy exclusions to align their investments with their personal values. For example, some clients want Thermal Coal exclusions based on their environmental views, while others may choose to restrict Tobacco or Private Prisons, or elect faith-based exclusions.

ESG Tilts

Clients may also elect to use ESG tilts to overweight names with high ESG ratings, and underweight names with low ESG ratings. These ESG scores are based on a proprietary ESG assessment that combine company-reported data, third-party research, and alternative data in forward looking evaluations, customized by sector.

Active Engagement

Engagement and proxy voting can drive positive change, and NB CDI™ clients may benefit from engagements led by the firm’s portfolio managers and Global Equity Research analysts. Neuberger Berman carried out over 4600 engagement meetings with corporate management teams in 2022, and our NB Votes initiative has disclosed over 60 advance votes. NB CDI™ clients can receive a report on engagement activities specific to their account.

For clients who choose to align their investments with their ESG objectives, our NB CDI™ offering provides a comprehensive and highly customizable approach.