Sustainability analysis is integrated across our investment strategies. We also offer sustainable investment solutions.
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.
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.
We organise our activities through the lenses of:
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.
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.
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.
The oddly named Inflation Reduction Act introduces a raft of far-reaching measures that will support the energy industry in the US for at least a decade to come. This has positive implications for investors.