Investment Strategies
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Sustainable Equity*
Sustainable Equity*
Core equity strategy with a focus on fundamentals-based bottom up research with ESG integration
- The team invests in high quality companies with a long term time horizon
- In-depth proprietary research and analysis is conducted to identify companies demonstrating best-in-class leadership, secularly advantaged growth, balance sheet strength, ESG leadership, valuation metrics and profitability
- Incorporate ESG criteria as part of the fundamentals-based due diligence process. ESG criteria include workplace policies, sustainable supply chains, product integrity and governance and disclosure, environmental impact and community impact.
- The investment premise is developed based on identifying the structural advantages of the company’s business and an assessment of the normalized earnings power of its business
- Valuation discipline at point of entry aims to achieve an attractive risk/return profile
Daniel Hanson, CFA
*As announced on May 29, 2025, the Neuberger Berman Sustainable Equity Strategy will be renamed the Neuberger Berman Quality Equity Strategy, effective on or about July 28, 2025.
Overview
Investment Philosophy
Responsibility is a hallmark of quality; best in class companies considering the environmental, social and governance aspects of their business can produce solid long-term returns. The strategy follows a fundamentals-based bottom-up, valuation-sensitive approach, where ideas are deployed in a diversified portfolio of 30–40 names, targeting long-term returns through stock selection.
Investment Process
|
New Ideas Identify “Best in Class” Companies Validate New Ideas Prospect List Include
Develop the Buy Discipline / Valuation Analysis Risk/Return Profile Portfolio 30 to 40 Best Ideas Maintenance Research On Existing Holdings
New Ideas
|
ESG: Benefits and Impact
Key ESG Criteria: Implications for Sustainable growth and profitability
| Environmental Impact | Environmental Management System Water management Clean tech innovations |
Minimize Penalties, Liabilities and Contingencies More efficient use of resources & reduced costs Product Innovation & Competiveness |
|---|---|---|
| Workplace Policies | Employee Health & Safety Labor Relations Employee & Board Diversity |
Lower Turnover, absenteeism/Higher productivity Lower Risk & Business Interruption Attracting and Retaining Talent |
| Community Impact | Human Rights policy Multi-stakeholder outreach Biodiversity |
“Right to Operate” Heightened Product Visibility, Customer Loyalty Improved Corporate Image |
| Sustainable Supply Chains | Supplier standards Sustainable sourcing Focus on quality |
Efficiency gains Reliability (minimized supply disruption) Reduced regulatory risk |
| Product Integrity | Life-cycle analysis Focus on product quality Innovative product solutions |
Sustainable customer value proposition Product safety, fewer recalls Addressing unmet needs in the marketplace |
| Governance & Disclosure | Independent, diverse board Executive compensation Political Spending |
Improved Oversight, Increased Accountability Management aligned with shareholder interest Enhanced Transparency & Disclosure |
Management
Daniel Hanson, CFA
Group Head and Senior Portfolio Manager—U.S. Sustainable Equity
31
Years of Industry Experience
3
Years with Neuberger Berman
Related News & Insights
White Paper | September 2023
The Active Foundations of Sustainable Investing
- As ESG and sustainability indices proliferate, we argue that sustainable investing is inherently an active management discipline.
Disruptive Forces in Investing | April 2023
The True Meaning of Sustainable Investing
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Article | April 2022
Why Passive ESG Fails to Deliver
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Article | December 2021
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Article | September 2021
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- With mounting evidence pointing to the materiality of ESG issues and potential ties to financial performance, we have seen investors asking for more companies to incorporate relevant and material sustainability / ESG metrics into their executive compensation plans.
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Article | December 2020
2020 Wrap-Up: ESG in Focus
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