Our Responsible Investment Approach

When we talk about ‘responsible investment’, we are primarily focused on corporate investments (i.e. our activities when we buy company shares on behalf of our clients). This is because there are more opportunities for Newton to have a voice and support change in relation to these types of investments than in relation to other securities and asset classes.

Newton’s approach to responsible investment is focused on multidimensional proprietary research, thought leadership and evidence. Where appropriate and as applicable, our investment managers assess sustainability as a fundamental part of the mosaic of issues required to fully understand the material risks and opportunities influencing the securities and instruments in which we invest on behalf of our clients.

We believe that companies that are well governed and can mitigate and manage the environmental and social factors that affect their enduring value are likely to be better managed businesses.

Integrated ESG Analysis and Dedicated Sustainable Strategies*

Our investment managers are responsible for understanding and evaluating material environmental, social and governance (ESG)-related risks and opportunities (where appropriate and as applicable) in the context of their role to create durable value for clients. We also run dedicated sustainable strategies with a variety of different sustainability focal points.

In-House Expertise

Our investment managers are supported by a well-resourced, global responsible investment team, comprising subject-matter experts. The responsible investment team guides our overall sustainability ecosystem and drives our internal frameworks, policies, standards, and specialized insights.

Active Stewards

We are active stewards – engaging and voting to influence social and environmental outcomes. We do that to try to enhance sustainable shareholder value, and with the conviction that over the long term the interests of all stakeholders are generally aligned. We also work with the wider financial services industry in a variety of advocacy areas.

Supporting Real-World Change

We are prepared to divest from securities where appropriate (and of course to exclude them where client or strategy mandates require). However, we also embrace the theory of investing for real-world change, and to that end we are prepared to engage with issuers and others to promote responsible investment.

Newton is a signatory to the Net Zero Asset Managers initiative, demonstrating our commitment to work with our clients to help fulfil their net-zero ambitions and to navigate portfolios through the complex energy transitions that are unfolding.**

* ESG analysis may vary depending on the type of security, investment rationale and investment strategy. Newton does not currently view certain types of investments as presenting ESG risks, opportunities and/or issues, and believes it is not practicable to evaluate such risks, opportunities and/or issues for certain other investments. In addition, Newton will make investment decisions that are not based solely on ESG considerations. Newton may conclude that other attributes of an investment outweigh ESG considerations when making investment decisions. ESG considerations do not form part of the investment process for Newton’s small cap or multi-asset solutions strategies.

** This applies to Newton Investment Management Limited and Newton Investment Management North America LLC. Newton Investment Management Japan is not in the NZAM scope for Newton.

What We Offer



  • Core Strategies*

    Our core strategy approach has available a number of research inputs, including, where appropriate and as applicable, our ESG-focused research. In our core strategies, we may invest in securities with ESG risks if we believe such risks are reflected adequately in their valuations, but we will look for opportunities to improve ESG issues affecting companies through voting and engagement.


  • Sustainable Strategies

    Our suite of sustainable strategies seek a balance between the current and future requirements of stakeholders. They aim to encourage a better allocation of capital that leads to the generation of sustainable risk-adjusted returns for clients alongside improved long-term global outcomes for the society and the environment.


  • Exclusions and Screening

    We also offer exclusions and screening to clients such as charity investors.

* ESG analysis may vary depending on the type of security, investment rationale and investment strategy. Newton does not currently view certain types of investments as presenting ESG risks, opportunities and/or issues, and believes it is not practicable to evaluate such risks, opportunities and/or issues for certain other investments. In addition, Newton will make investment decisions that are not based solely on ESG considerations. Newton may conclude that other attributes of an investment outweigh ESG considerations when making investment decisions. ESG considerations do not form part of the investment process for Newton’s small cap and multi-asset solutions strategies.

Sustainable Investment Strategies

Our range of sustainable investment strategies builds on our long heritage of active stewardship and ESG-focused research.

These responsible investment strategies are managed by Newton Investment Management Ltd (‘NIM’). NIM is part of the Newton Investment Management Group.

Principles for Responsible Investment (PRI) Reports:

2023 PRI Assessment Report – Newton Investment Management
2023 PRI Public Transparency Report – Newton Investment Management

The ratings were given by UN PRI to Newton Investment Management Limited and Newton Investment Management North America LLC on December 15, 2023 and were based upon responsible investment activities during the period January 1-December 31, 2022. We have provided compensation to UN PRI to obtain and/or use these ratings in our marketing materials.

Insights

Expert comment and analysis from our investment team and industry specialists on topics related to responsible and sustainable investment.

Meet the Team

*BNY Mellon India – outsourced service provider to Newton Investment Management.

Contact us

We are here to help with any questions you may have about our investment solutions.

Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.

ESG analysis may vary depending on the type of security, investment rationale and investment strategy. Newton does not currently view certain types of investments as presenting ESG risks, opportunities and/or issues, and believes it is not practicable to evaluate such risks, opportunities and/or issues for certain other investments. In addition, Newton will make investment decisions that are not based solely on ESG considerations. Newton may conclude that other attributes of an investment outweigh ESG considerations when making investment decisions. ESG considerations do not form part of the investment process for Newton’s small cap and multi-asset solutions strategies.

Newton manages a variety of investment strategies. How ESG considerations are assessed or integrated into Newton’s strategies depends on the asset classes and/or the particular strategy involved. ESG may not be considered for each individual investment and, where ESG is considered, other attributes of an investment may outweigh ESG considerations when making investment decisions. ESG considerations do not form part of the research process for Newton’s small cap and multi-asset solutions strategies.