A global investment manager has been shortlisted for an ESG incorporation initiative of the year for systematically analysing the potential investment implications of climate change across portfolios.
Neuberger Berman has been shortlisted for the award at the upcoming United Nations-backed Principles for Responsible Investment awards after top scores across all categories in its latest report.
The PRI report measures ESG integration efforts among 1,100 investment firms worldwide with Neuberger Berman obtaining the highest score, A+ for its overarching approach to ESG strategy and governance, as well as an A+ for integration across all asset classes.
As part of Neuberger Berman’s integrated approach, portfolio managers analyse and review which securities are likely to financially benefit or suffer from changes in climate, regulation and technology.
Particularly in climate, Neuberger Berman runs a range of scenarios, including those aligned with a 2 degree Celsius and a 1.5 degree Celsius transition allowing analysts to focus on companies who are at risk.
Head of ESG investing at Neuberger Berman Jonathan Bailey said the shortlisting for the award reflected the firm’s approach to ESG in its investment practices.
“Both industry recognitions reflect the work of our analysts and portfolio managers in integrating our ESG philosophy and proprietary ESG ratings systems across asset classes,” said Mr Bailey.
Mr Bailey said by analysing the investment implications of climate change across portfolios the firm had developed resources to enhance long-term value creation for clients.
“As the world transitions to a lower carbon economy, it is important for us to understand how best to position our portfolios to serve our clients’ objectives,” said Mr Bailey.
Mr Bailey said no scenario could ever be perfectly accurate but by modelling climate-related risk and opportunity it helped managers to be better informed.
“They (portfolio managers) can then choose how best to apply all the tools of active management, whether that is to engage or ultimately to sell a security when it no longer offers an attractive risk-adjusted potential return.”
The winners of the PRI awards will be announced on 10 September.
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