ESG-RELATED DISCLOSURES
The use of ESG factors could result in selling or avoiding investments that subsequently perform well or purchasing Investments that subsequently underperform.
NB Private Markets consists of the following investment strategies that are classified as ESG-Integrated by the Neuberger Berman ESG Product Committee: Private Equity Investment Portfolios and Co-investment Platform, Private Equity Secondary Platform, Almanac ARS Funds, Private Credit Platform, Marquee, NB Insurance-Linked Strategies Platform, Renaissance, Athyrium, and NBAIM Fund-of-Funds Platform. Unless explicitly noted, the ESG integration processes described herein apply solely to the Private Equity Investment Portfolios and Co-investment Platform and Private Equity Secondary Platform (“NB Private Equity”).
This material is intended as a broad overview of the portfolio managers’ style, philosophy and process and is subject to change without notice. Many of the-firm level processes described herein are subject to Neuberger Berman’s policies and procedures, including certain information barriers within Neuberger Berman that are designed to prevent the misuse of material information between the NB Private Markets teams and the public side investment and ESG teams.
NEUBERGER BERMAN NET ZERO MATRIX™ DISCLAIMER
In 2022, Neuberger Berman (“NB”) engaged Ortec Finance (“Ortec”) to assist in the production of the Neuberger Berman Net Zero Matrix™ powered by Ortec Finance ClimateALIGN (“the Matrix”). The resource is intended as an educational tool to engage with GPs to understand net-zero alignment and decarbonization pathways with portfolio companies. The Matrix is comprised of information from Ortec and a variety of other sources. Specifically, Ortec ClimateMAPS and Ortec ClimateALIGN comprise key portions of the Matrix. Ortec ClimateMAPS seeks to capture exposure to systemic, economic and financial climate risks. Ortec ClimateALIGN purports to monitor alignment with net-zero goals by 2050, based on sector and region. Ortec also contributes emissions data from public sources. Please see the Ortec Finance Disclaimer for additional information.
Please note that the Matrix relies on information provided by Ortec and other third-party sources. Neither Neuberger Berman nor its affiliates make any representation or assume any responsibility as to the accuracy or completeness of such information. Please also note that the assumptions referenced above represent key components of the Matrix and any change in these assumptions may produce materially different results. It should also be noted that much of the information depends on publicly available ESG data, and the same information may not be available for private companies. As such, there should be no reliance placed on the Matrix in making any investment decision. The Matrix is presented for illustrative and educational purposes only and is not intended as a promise or prediction of performance.
Ortec Finance ClimateALIGN Methodology
Ortec Finance’s ClimateALIGN methodology leverages E3ME, an advanced macro-economic model by Cambridge Econometrics, coupled with Ortec Finance’s own internal model OFS, a robust and realistic stochastic financial model, to power its Ortec Finance Climate Scenarios. Built on 500+ sector-region modeled combinations that cover the entire economy and planet, Ortec Finance’s granular climate scenarios provide insight based on a sectoral decarbonization approach (SDA) to allow for distinct decarbonization pathways per sector-region combination.
The ClimateALIGN methodology builds on Ortec Finance’s methodological contribution to OS-Climate’s Portfolio Alignment tool, this tool is in line with standards and best practices set by the Task Force on Climate-Related Financial Disclosures (TCFD)’s Portfolio Alignment Team (PAT) and the Glasgow Financial Alliance for Net Zero (GFANZ). OS-Climate is a membership-based organization including a breadth of stakeholders such as the Net Zero Asset Owner Alliance. By building on top of an open-source methodology, ClimateALIGN leverages pre-competitive market collaboration and transparency to accelerate portfolio alignment analytics in the financial sector. ClimateALIGN’s underlying methodology incorporates both a company’s historical carbon footprint / emissions and a company’s ambitions / targets to reduce emissions in the future.
The “Neuberger Berman” name and logo, including without limitation “Neuberger Berman Net Zero Matrix,” are registered service marks of Neuberger Berman Group LLC.
