In focusing on sustainability in our investments, we seek to position portfolios to benefit from a deep understanding of externalities that, over the long term, we believe the market will price into the value of securities. This is central to our core goal of achieving long-term excellence for our clients.
We have a firmwide controversial-weapons exclusion policy and will not invest in companies that are directly involved in the manufacture and production of cluster munitions, antipersonnel landmines, and biological and chemical weapons. At the request of clients with segregated portfolios, we can exclude specific securities, sections or countries from our ESG-integration portfolios.
Investments involve risk; losses may be made.
We seek high-quality ESG-integration standards firmwide for all strategies. Our aim is to ensure that robust ESG-integration processes highlight material sustainability risks and opportunities. Our approach is based on the belief that, over time, the market will increasingly price negative externalities into the value of securities, and that investment outcomes can be improved by a deep understanding of material ESG-related risks and opportunities.
Ninety One’s investment teams have ultimate responsibility for managing sustainability risks and opportunities, and their own integration frameworks. In this, they are supported by several global functions:
Our engagement approach is driven by our goal to preserve and grow the real value of the assets entrusted to us by our clients over the long term. We take a targeted approach, prioritising engagements where we can exert influence. Where we believe engagement is ineffective or companies are not committed to change, we may use the ultimate lever we have as an investor, which is to reallocate our capital. Ninety One votes at shareholder meetings throughout the world as a matter of principle.
During the financial year 2022, we carried out 337 engagements and cast 15,007 votes.
We offer a range of dedicated sustainability focused investment solutions..
While ESG considerations are integrated into all of our mainstream investment strategies, our sustainability and impact strategies focus on positive inclusion and they all have a defined impact objective. This involves assessment of the externalities associated with a country or industry in the context of best practice for managing or minimising negative externalities, as well as promoting positive externalities..
We also engage actively on these issues with our stakeholder communities through knowledge exchange and advocacy. We define sustainability and impact strategies using three axes that can be applied to all investments:
Over the past year, Ninety One and Imperial College collaborated on a second bespoke climate risk programme for Ninety One’s investment professionals. The Ninety One Board also took part. The programme focused on understanding climate change and climate risk, and how they are impacting the investment landscape. It covered: