ENVIRONMENTAL, SOCIAL AND GOVERNANCE INVESTING
Integration and Proprietary Ratings
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.
OUR COMMITMENT TO ESG INTEGRATION
Individual research analysts and portfolio managers are responsible for implementing ESG integration in their portfolios and investment research. We believe 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.
Neuberger Berman’s Environmental, Social and Governance Integration Framework
Avoid
Excludes particular companies or whole sectors from the investable universe
Assess
Considers one or more ESG factors alongside traditional factors in investment decisions
Aim for Impact
Seeks to achieve measurable positive social and environmental outcomes
for people and the planet alongside a market-rate financial return
for people and the planet alongside a market-rate financial return
Amplify
Seeks to identify high quality, well-positioned issuers with leadership on relevant ESG factors
INTEGRATION FRAMEWORK
Investment Strategy Examples
Read more Neuberger Berman investment strategy examples of our integration framework
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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
1Industry-Specific Assessment
Conduct material factors analysis using Sustainability Accounting Standards Board (SASB) as a starting point, but adding expert analyst judgement
2Broad Range of Sources
Combines company-reported, specialized data and third-party research used to measure performance against these factors
3Active Engagement
Engaging with company management provides additional qualitative insight for analysts to overlay quantitative assessment
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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ESG Investment Capabilities
We offer a range of ESG-integrated solutions across various investment vehicles. Listen to our investment teams discuss ESG integration across asset classes within the firm.
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