How has Newton fared in the latest United Nations Principles for Responsible Investment (PRI) annual assessment ratings?
- Newton has been a signatory of the United Nations’ Principles for Responsible Investment (PRI) since 2007.
- We are required to report annually to the PRI, and assessed on our approach to, and implementation of, ESG integration throughout our investment process, and our role as responsible owners.
- For the fourth consecutive year, we have been awarded A+ overall.
At Newton, we have made a long-term commitment to responsible investment and stewardship, which is why we were early signatories to the United Nations’ Principles for Responsible Investment (PRI) back in 2007.
The PRI acts as an independent, global proponent of responsible investment, and works with its signatories to better understand and encourage the integration of environmental, social and governance (ESG) considerations into investment and stewardship decisions. Since the launch of the PRI in 2006, it has grown from 100 signatories to almost 2,500, and we are proud to have been a signatory for the last 13 years.
Just to recap, signatories to the PRI commit to adopt the following six principles for responsible investment:
- We will incorporate ESG issues into investment analysis and decision-making processes
- We will be active owners and incorporate ESG issues into our ownership policies and practices
- We will seek appropriate disclosure on ESG issues by the entities in which we invest
- We will promote acceptance and implementation of the principles within the investment industry
- We will work together to enhance our effectiveness in implementing the principles
- We will report on our activities and progress towards implementing the principles
Annual assessment
As part of our commitment to the PRI, we are required to report annually on both our approach to, and implementation of, ESG integration throughout our investment process, as well as our role as responsible owners. We are pleased to reveal that in the latest PRI annual assessment report for 2020, we have once again been awarded an A+ rating overall, for the fourth consecutive year. Only 29% of investment managers received an overall A+ rating in the latest report.
We have also been awarded the highest rating possible (A+) in all five areas assessed, with Newton’s A+ scores strongly outperforming the median score across all categories.
The percentage of investment managers who also received an A+ rating for the modules that we responded to were as follows:
- Listed Equity Active Ownership: 9%
- Listed Equity Incorporation (refers to integration of ESG): 23%
- Fixed Income SSA: 16%
- Fixed Income Corporate Financial: 11%
- Fixed Income Corporate Non-Financial: 11%
Our PRI summary scorecard 2020
We are pleased that the PRI has independently agreed that our responsible investment practices meet its highest standards. It is important to us that our credentials in responsible investment are independently verified, and confirmed in the consistently high ratings we have achieved across all categories. However, our long-time commitment to responsible investment is more than a box-ticking exercise, and we will continue to work hard to be responsible stewards of our clients’ capital.
Read the PRI’s 2020 assessment of Newton.
Authors
Rebecca White
Global ESG integration lead
This is a financial promotion. These opinions should not be construed as investment or other advice and are subject to change. This material is for information purposes only. This material is for professional investors only. Any reference to a specific security, country or sector should not be construed as a recommendation to buy or sell investments in those securities, countries or sectors. Please note that holdings and positioning are subject to change without notice.
Important information
This material is for Australian wholesale clients only and is not intended for distribution to, nor should it be relied upon by, retail clients. This information has not been prepared to take into account the investment objectives, financial objectives or particular needs of any particular person. Before making an investment decision you should carefully consider, with or without the assistance of a financial adviser, whether such an investment strategy is appropriate in light of your particular investment needs, objectives and financial circumstances.
Newton Investment Management Limited is exempt from the requirement to hold an Australian financial services licence in respect of the financial services it provides to wholesale clients in Australia and is authorised and regulated by the Financial Conduct Authority of the UK under UK laws, which differ from Australian laws.
Newton Investment Management Limited (Newton) is authorised and regulated in the UK by the Financial Conduct Authority (FCA), 12 Endeavour Square, London, E20 1JN. Newton is providing financial services to wholesale clients in Australia in reliance on ASIC Corporations (Repeal and Transitional) Instrument 2016/396, a copy of which is on the website of the Australian Securities and Investments Commission, www.asic.gov.au. The instrument exempts entities that are authorised and regulated in the UK by the FCA, such as Newton, from the need to hold an Australian financial services license under the Corporations Act 2001 for certain financial services provided to Australian wholesale clients on certain conditions. Financial services provided by Newton are regulated by the FCA under the laws and regulatory requirements of the United Kingdom, which are different to the laws applying in Australia.
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