Sustainable
Investing

Sustainable Investing

Since the inception of the firm in 1939, Neuberger’s purpose has been to deliver compelling investment results for our clients over the long term, supporting them to achieve their investment objectives. We understand that our clients expect us to consider financially material risk and return factors to help achieve their objectives. We also understand that for some clients, the outcomes that their portfolios enable are an important consideration in conjunction with investment performance.

Proprietary, Analyst-Informed Approach

Long Term Value Creation

We believe that financially material environmental, social, and governance factors may be an important driver of long-term investment returns from both an opportunity and a risk mitigation perspective.

Financial Materiality in Investment Analysis

We define financial materiality as information about factors that we reasonably expect could affect an issuer’s overall financial condition or performance, including impact on various financial metrics such as cash flows, operating performance, access to financing or cost of capital over the short, medium or long term.

Tailored Asset Class Specific Philosophies

Investment professionals across our platform have developed asset class specific philosophies for strategies and funds that integrate financially material environmental, social, and governance factors in alignment with our firm-wide approach:
We consider financially material factors which could include environmental, social and governance topics where we believe they may impact security valuation for example through a company’s forward-looking multiple, the value of its intangible assets or its earnings.

Neuberger Integration Framework

For strategies that incorporate financially material environmental, social and governance considerations into the investment process, each investment team selects an approach from our integration framework depending on the strategy’s objective, asset class and investment time horizon.

Investment Process Emphasizes Identifying Financially Material Environmental, Social and Governance Factors

Research teams leverage proprietary in-house research tools to develop a data-driven, differentiated view
This material is intended as a broad overview of the portfolio managers’ style, philosophy and process and is subject to change without notice. The portfolio managers’ views may differ from those of other portfolio managers as well as the views of Neuberger. Portfolio characteristics are subject to change without notice.

Neuberger Materiality Matrix

Comprehensive Coverage Across Industries and Asset Classes

  • The Neuberger Materiality Matrix spans more than 70 industries, grouped under 11 sectors, and covers multiple asset classes
  • Identifies and incorporates over 30 potentially financially material environmental, social, and governance factors relevant to investment decisions

Consistent and Forward-Looking Investment Analysis

  • The matrix enables investment teams to develop forward-looking views by industry, supporting the identification of financially material environmental, social and governance risks and opportunities
  • It guides investment analysis and engagement in a consistent and comparable manner, ensuring uniform standards across sectors

Accessibility and Integration of Expert Insights

  • The matrix is available to all investment teams as a starting point for deeper analysis and research
  • It accommodates insights from sector experts and can be applied to a variety of asset classes, including private markets

Neuberger Quotient

Industry-Relative Ratings and Availability

  • Neuberger Quotients provide industry-relative ratings for many companies, focusing on potentially financially material environmental, social, and governance characteristics

Coverage, Data Updates, and Methodology

  • The custom ratings cover over 4,000 equities and 2,700 credit issuers, including sovereigns
  • The underlying data is updated regularly, and the rating methodology is reviewed at least every two years with input from sector analysts

Analyst Experience and Qualitative Judgment

  • Some ratings leverage analysts’ extensive industry experience to inform decisions on more than 40 qualitative categories that may be difficult to measure 
  • Analysts always have the ability to override ratings based on their unique company insights and views, ensuring ratings reflect the most up-to-date and relevant information

Neuberger Equity Quotient Example: Software Industry

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