Neuberger Berman has received an A+ across the board for its United Nations Principles for Responsible Investment (PRI) assessment report.
The investment manager received the top score for its overall strategy and governance, private equity, listed equity – incorporation, listed equity – active ownership, fixed income – sovereign, supranationals and agencies, and fixed income – corporate non-financial.
Since 2018, the manager has improved their listed equity – active ownership score from an A.
In an announcement, the firm said it used an integrated environmental, social, and governance (ESG) approach where their portfolio mangers analysed and reviewed which securities were likely to financially benefit or suffer from changes in weather patterns, regulation, or technology shifts.
“By systematically analysing the potential investment implications of climate change across portfolios, the firm has developed a resource to enhance long-term value creation for clients,” the firm said.
Neuberger Berman head of ESG investing, Jonathan Bailey, said it was important to understand how to best position their portfolios to service clients’ objectives as the world transitioned to a lower carbon economy.
“No scenario will be perfectly accurate, but by systematically modelling climate-related risk and opportunity, our portfolio managers are better informed about how their portfolios are positioned,” Bailey said.
“They 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 firm has also been shortlisted as a finalist for the PRI awards to be announced on 10 September.