How we advocate
Through advocacy, we seek to engage our clients and stakeholders on sustainability and encourage them on their journeys towards more sustainable long-term investing.
Our advocacy strategy is driven by a belief that asset managers have a role to play in transforming how business connects with society.
Today, business has evolved to operate almost independently of society and the environment. A sustainable future depends on recognising that business is part of society, and that both depend on the natural world.
Through engaging with companies as an integral part of our investment processes (see Invest), as well as through our broader advocacy initiatives including our work with industry bodies, thought leadership, education and policy contribution, we seek to play our part in accelerating the transition to a more sustainable way of thinking and acting.
Investments involve risk; losses may be made.
Our approach to advocacy is anchored in our principle of investing for positive change, rather than avoiding and divesting.
We organise our activities through the lenses of:
Input into investment thinking
Case study: launch of Net Zero Sovereign Index
Building on the Climate & Nature Sovereign Index that Ninety One and WWF launched in 2020, Ninety One developed the Net Zero Sovereign Index in 2021. The index addresses the growing need for asset owners and managers to show that their sovereign bond portfolios are Paris-aligned and on a credible path to net zero.
Policy advocacy
Case study: FCA SDR consultation
In January 2022, we responded to the FCA’s discussion paper on Sustainability Disclosure Requirements (“SDR”), regarding which companies will be required to report on their sustainability risks, opportunities, and impacts. In our opinion, policies should be underpinned by principles. We proposed to the FCA a focus on a principled ‘what a manager does’ rather than a data-driven ‘how much a manager does’. Although we support the intent of the disclosure requirements, we raised a number of issues and, as a general point, asked that regulatory intervention on sustainable finance improves standardisation across jurisdictions.
Industry collaboration
Case study: Carbon Disclosure Campaign
We are active supporters of CDP (formerly the Carbon Disclosure Project) and believe that advocating for better carbon reporting is critical. It was a successful year for CDP disclosures in general, despite the pandemic, with over 3,200 companies submitting disclosures, an increase of c.14% compared with 2020.
Ninety One supported engagements with 94 companies, with 35 companies submitting their first reports. We were a lead signatory on 24 of these engagements, with seven companies submitting their first reports. We will continue contributing to this campaign in 2022.
Recent highlights:
- Advocacy focused on raising awareness of the need to fund the emerging-market transition, through these initiatives:
- Participated in relevant workstreams within the Glasgow Financial Alliance for Net Zero (“GFANZ”); Sustainable Markets Initiative (“SMI”); and Climate Bonds Initiative (“CBI”).
- Joined the ASCOR project to help develop an assessment framework for sovereigns’ performance and governance as they transition.
- Contributed to the UK Impact Investing Institute’s ‘Just Transition’ report.
- Published the white paper ‘No one left behind: Building an inclusive transition for emerging markets’, and launched the Net Zero Sovereign Index.
- Our Chief Sustainability Officer became co-chair of the IIGCC’s Investor Practices working group, which provides advice to asset owners and asset managers on how to operationalise their net-zero commitments.
- Hosted the ‘Investing for a world of change’ forum, which focused on placing net zero at the core of the agenda.
- Published the second edition of our ‘Planetary Pulse’ survey of investor attitudes to sustainability.
- Signed the Investor Position Statement: A call for Corporate Net Zero Transition Plans.
- Contributed to the ASISA consultation regarding the Draft Green Finance Taxonomy.
- Became a founding member of the Sustainable Trading Initiative.