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ENVIRONMENTAL, SOCIAL AND GOVERNANCE INVESTING

Our Approach

Our Commitment to ESG Integration
Portfolio managers, private markets investment professionals and individual credit and equity research analysts are responsible for ESG integration. We believe that this bottom-up approach encourages strategy-specific innovation while allowing each portfolio management team to learn from best practices across the investment platform. Our ESG Investing team accelerates this process with top-down expertise and support.
Avoid, Assess, Amplify and Aim for Impact
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Jonathan Bailey, Head of ESG Investing at Neuberger Berman, provides an overview of our ESG legacy and ongoing commitment across our investment platform.

Neuberger Berman’s Environmental, Social and Governance Integration Framework

For strategies that incorporate material ESG considerations into the investment process, each portfolio management team selects an approach from the NB ESG Integration Framework – Assess, Adapt, Amplify, Aim for Impact or Avoid, depending on various factors such as the objectives of the strategy, asset class and investment time horizon.

PROCESS-FOCUSED

  • Assess: Considers financially material ESG factors alongside traditional factors in the investment process. ESG factors are generally no more significant than other factors in the investment selection process.

OUTCOME-FOCUSED

  • Adapt: Seek to achieve social and/or environmental outcomes through engagement with issuers while also achieving a financial goal.
  • Amplify: Seek to achieve a financial goal by investing in high-quality issuers with sustainable business models, practices, products or services and leadership on relevant ESG factors.
  • Aim for Impact: Seek to intentionally generate positive, measurable social and environmental outcomes for people and the planet alongside a market rate financial return, by investing in issuers whose core business, products, services or use of proceeds of each investment contributes to solutions of pressing environmental and social issues.
  • Avoid: Ability to exclude particular issuers or whole sectors from the investable universe to meet regulatory requirements and accommodate client demands.
Neuberger Berman’s PRI Assessment Scores

In the 2023 PRI Assessment, we scored above both the median of all reporting signatories and of large investment management peers globally1 for our ESG integration efforts in every reported category. This also marks the fourth consecutive year in which we obtained the top rating in the overarching Policy, Governance and Strategy category, which aims to capture signatories’ overall approach to responsible investment, including engagement and proxy voting.2

PRI Modules Neuberger Berman Ratings Median Ratings of all Reporting Signatories
Policy, Governance & Strategy* ★★★
Indirect - Private Equity ★★★
Direct - Listed Equity - Active Quantitative ★★★
Direct - Listed Equity - Active Fundamental ★★★★
Direct - Fixed income - SSA** ★★★
Direct - Fixed income - Corporate ★★★★
Direct - Fixed income - Securitized ★★★
Direct - Fixed income - Private Debt ★★★★
Confidence Building Measures ★★★★

See Neuberger Berman's Historical PRI Assessment Scores

*Formerly Investment and Stewardship Policy. **SSA = Sovereign, Supranational and Agency.

1Based on the average scores of reporting investment management signatories globally with AUM greater than $50bn.

2For illustrative and discussion purposes only. PRI grades are based on information reported directly by PRI signatories, of which investment managers totaled 3,123 for 2023, 2,791 for 2021, 1,545 for 2020 and 1,247 for 2019. All PRI signatories are eligible to participate and must complete a questionnaire to be included. The underlying information submitted by signatories is not audited by the PRI or any other party acting on its behalf. Signatories report on their responsible investment activities by responding to asset-specific modules in the Reporting Framework. Each module houses a variety of indicators that address specific topics of responsible investment. Signatories’ answers are then assessed and results are compiled into an Assessment Report. Neuberger Berman pays a fee to be a member of PRI and the grades are only available to PRI members. Ratings referenced do not reflect the experiences of any Neuberger Berman client and readers should not view such information as representative of any particular client’s experience or assume that they will have a similar investment experience as any previous or existing client. Awards and ratings are not indicative of the past or future performance of any Neuberger Berman product or service. Moreover, the underlying information has not been audited by the PRI or any other party acting on its behalf. While every effort has been made to produce a fair representation of performance, no representations or warranties are made as to the accuracy of the information presented, and no responsibility or liability can be accepted for damage caused by use of or reliance on the information contained within this report. Information about PRI grades is sourced entirely from PRI and Neuberger Berman makes no representations, warranties or opinions based on that information.

To read more about Neuberger Berman’s Historical PRI Assessment Scores, please visit nb.com.

2023 PRI Transparency Report
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2020 Climate Transparency Report
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Proprietary ESG Analysis and Ratings
At Neuberger Berman our research analysts have worked closely with our in-house ESG Investing team to rate corporations on material ESG metrics at the industry level. Core to development of this proprietary ESG ratings system has been our ability to marry the specialized sector expertise of our analysts with our dedicated internal ESG investing team’s perspective on complex ESG data sets.
Assessment of Environmental and Social Factors
A cohesive three-part method
Integration examples
ESG Investing in ‘Dirty' Industries: Materiality and the Chemicals Industry
In sectors often thought of as ‘dirty,’ material ESG factors can assist in identifying sustainability and innovation.
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ESG for EMD: Toward Best Practice
A serious approach to ESG in emerging markets is increasingly a proprietary approach.
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