Planetary Pulse: Sustainable investing
As the global economy accelerates its transition to a more sustainable model, are investors ready and able to adapt their portfolios to the new risks and opportunities?
We do this by building a better firm, by trying to invest in a better way and, by doing so contribute to a better world.
Investments involve risk; losses may be made.
Development, learning and ongoing improvement are the common elements in our sustainability evolution.
The first phase of our approach to sustainability and ESG integration within investments, which we termed ‘ESG 1.0’ and which ran to 2019, established a common understanding of ESG and stewardship at the firm.
We defined the next phase as Sustainability 2.0, a key feature of which was that the investment teams became fully responsible for addressing and embedding ESG analysis in their processes. Monitoring and support was provided by the Sustainability team and the Investment Risk function.
Common understanding of ESG
Investment teams take primary responsibility
Alignment and execution
We thought long and hard before committing to net zero. Why? Because there are some approaches to net-zero investing that would clean up our own portfolio emissions but leave the world a dirtier place. Such approaches could also starve the developing world of the capital it desperately needs for sustainable development.
So when we joined the Net Zero Asset Managers Initiative (“NZAMI”) in June 2021, we made two commitments:
We intend to seek the Science-based Targets initiative (“SBTi”) validation of Ninety One’s transition plan once SBTi has finalised the amendments to its financial services net-zero methodology.Read more about our commitment to net zero
Ninety One’s sustainability framework has three core components:
Sustainability analysis is integrated across our investment strategies. We also offer sustainable investment solutions.
We seek to lead the conversation where we can make a difference and offer expertise on important sustainability topics.
We believe change starts at home. We run our business responsibly and act sustainably
Through Invest, we integrate the assessment of ESG risks into our portfolios by deepening our understanding of externalities and improving our analysis and assessment of the risk they present; we engage with our companies to drive real-world change; and we seek to increase our allocation to sustainable strategies that invest in companies doing the most to increase their positive impact on the world.
Through Advocate, we seek to raise awareness of the need to fund the net-zero transition in a fair and inclusive way, particularly in emerging markets.
Through Inhabit, we work to improve the sustainability of our operations, and to support charities and community projects that are important to the team at Ninety One.
Across Invest, Advocate and Inhabit, we seek to align behind the purpose and culture of our business: to do the right thing. By doing the right thing, we believe we can deliver the best outcomes for our clients, our people and the planet.
Learn more about Invest, Advocate, Inhabit
Our purpose is to invest for a better tomorrow. Our Sustainability & Stewardship Report details Ninety One’s work – on behalf of our clients and all of our stakeholders – towards a more sustainable future, including with respect to our investments, advocacy and corporate footprint.
As the global economy accelerates its transition to a more sustainable model, are investors ready and able to adapt their portfolios to the new risks and opportunities? How well do they understand what it means to invest sustainably or to tackle net zero? And what do they expect from today’s investment managers?