Our ESG Philosophy
Neuberger Berman has a longstanding history of responsible investing and considering environmental, social and governance factors as important drivers of long-term investment returns from both an opportunity and a risk mitigation perspective. We also understand that for many of our clients the impact of their portfolio is an important consideration in conjunction with investment performance.
As such, we believe that material ESG factors, like any other material factor, should be incorporated in the investment decision-making process. There are various ways to integrate ESG considerations to help generate enhanced returns as well as to implement non-financial objectives within a portfolio. NB believes its approach to doing so not only benefits its clients, but can also support better-functioning capital markets and generate positive impact for people and planet as a whole.
On this basis, NB has defined an ESG Policy which provides a broad framework for its approach to ESG integration. The Policy is reviewed annually by the ESG Committee and Neuberger Berman’s Board of Directors, which is responsible for overseeing NB ESG integration efforts, setting goals, and reporting on the firm’s performance. The Policy applies to all asset classes across the investment platform, including equities, fixed income and private markets, and is intended to provide a broad framework for our approach to integrating ESG factors into investment management.
Five Areas of Analysis Included in our Investment Evaluation Process
NB Renaissance’ portfolio is made of either global leaders in sector niches with high levels of innovation, customisation and service or local leaders with sustainable competitive advantages. Our portfolio has a well-diversified revenue base and strong exposure to resilient sectors: specialised industrials, sustainable specialty chemicals, IT & software, and business services.
Since its establishment, NBR has actively promoted the integration of sustainability best practices across its portfolio, as demonstrated by a number of its portfolio companies that have already embarked on a path of long-term commitment to sustainability.
READ FULL PRESS RELEASE
In our 2021 PRI Assessment, we obtained the highest possible scoring1 across all categories for our approach to ESG for the third year in a row.
In the current reporting cycle, the PRI adopted a new, more stringent assessment methodology. Neuberger Berman earned 5 Stars across every asset category in which it reported and rated above the median in every category. In addition to scoring the best possible ranking across all asset classes, the firm also obtained the highest possible score in PRI’s new private debt category and its overarching Investment & Stewardship Policy category.
|Neuberger Berman||Median of All Reporting Signatories|
|Investment & Stewardship Policy||5 Stars||3 Stars|
|Listed Equity – Active Quantitative – Incorporation||5 Stars||3 Stars|
|Listed Equity – Active Fundamental – Incorporation||5 Stars||4 Stars|
|Listed Equity – Voting||5 Stars||3 Stars|
|Fixed Income – SSA||5 Stars||3 Stars|
|Fixed Income – Corporate||5 Stars||3 Stars|
|Fixed Income – Securitized||5 Stars||3 Stars|
|Fixed Income - Private Debt||5 Stars||4 Stars|
|Private Equity||5 Stars||3 Stars|
1For illustrative and discussion purposes only. PRI grades are based on information reported directly by PRI signatories, of which investment managers totaled 3,404 for 2021, 1,924 for 2020, and 1,119 for 2019 . Note that scores for the 2021 reporting cycle cannot be compared to previous years due to the change in PRI assessment methodology. Unlike previous years, the indicator scores are assigned one of five performance bands (from 1 to 5 stars) instead of six performance bands (from A+ to E). 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.
We are a strong supporter of sustainability initiatives in investment markets and are active in the following industry-wide initiatives: