Discover responsible investing

Sustainable
investing at Newton Investment Management

What does Sustainable investing mean for Newton Investment Management?

Newton understands the investments it makes can have far-reaching influence – not just on its clients’ financial prospects, but on environmental and social factors shaping those prospects, such as:

  • Climate change
  • Human rights in supply chains
  • Diversity and fairness across workforces.

Newton believes the interests of investors, and of society more widely, can be mutually supportive. Reflecting this belief, Newton is an active and engaged owner of financial assets, investing in a manner it believes meets its responsibilities to clients and society as a whole.

Across the portfolios it manages, Newton uses a thematic framework, helping it to achieve long-term perspective and navigate a world in flux. Newton’s investment themes alert the members of the investment team to the new opportunities that change creates and help identify the emerging risks that will impair the value of investments.

Key areas of focus for Newton’s sustainable strategies include net zero (achieving a balance between the amount of greenhouse gas emissions produced and the amount removed from the atmosphere), electrification and the circular economy.

Environmental, Social and Governance (ESG) Investment Approach Risk: This Fund can be considered to follow an ESG investment approach or incorporate elements of an ESG investment approach, which may cause it to perform differently than other funds that have a similar objective but which do not integrate an ESG investment approach (or elements thereof) when selecting securities. In addition, in following an ESG investment approach, the Fund is dependent upon information and data from third parties (which may include providers for research reports, screenings, ratings and/or analysis such as index providers and consultants). Such information or data may be incomplete, inaccurate or inconsistent.

According to Newton, the impact of structural change will manifest across traditional economic sectors and will be significant in magnitude and long-term in duration.

Active engagement at Newton Investment Management

Newton may engage with selected companies to understand better a company’s approach to managing emerging environmental, social and governance (ESG) issues. Newton may also specifically engage with companies which meets its ESG and sustainability criteria but have also been identified as transitioning away from environmentally or socially harmful activities, to help determine the progress being made in achieving their objectives, supporting the changes being made or encouraging further enhancements.

In addition, engagement may be undertaken in an effort to influence and to support change in the business practices or activities of a company and to obtain information that helps Newton achieve a better understanding of the company’s circumstances. Newton typically exercises voting rights at shareholder meetings of portfolio company holdings.

Newton's engagement in action - highlights from Q2 2022:

  • Voted at 1,838 Annual General Meetings and 108 Extraordinary General Meetings on behalf of clients.

  • Engaged with 67 issuers for the purpose of raising ESG concerns or seeking further information.

Newton's approach to net zero

The sixth and latest report by the United Nations’ Intergovernmental Panel on Climate Change (IPCC) in August 2021 warned that the world would reach 1.5 degrees Celsius of warming by 2030 under all scenarios examined. At the COP26 climate summit last November, there was much talk but still a relative dearth of concrete detail over how net-zero carbon emissions would be achieved. What is clear though is that if we are to collectively hit the pledged net-zero targets, there will need to be an extraordinary and global effort, and asset managers will have a crucial role to play in the transition.

Find out more on Newton’s approach to cutting carbon emissions. In a recent paper, the following issues are addressed:

  • The stark realities of climate change today…and tomorrow
  • Why present-day pledges may not be sufficient for limiting emissions
  • Why Newton chooses real-world decarbonisation over portfolio decarbonisation
  • The need to support emerging markets in the energy transition
  • Why a holistic approach including government and genuine cross-company support is needed

Newton net-zero pledge

50%

of Newton financed emissions to be covered by credible transition plans by 2030

100%

of Newton financed emissions to be covered by credible transition plans by 2040 1, 2

What's Newton Investment Management's sustainable investment process?

Newton’s focus is on companies run for the long term, which effectively balance the interests of stakeholders while also actively managing material risks for their industry (or economy). Newton believes such companies can deliver resilient returns for investors.

Thematic heritage

An investment approach which has used themes to understand economic, political, social, environmental and technological backdrops, and bring investment opportunities to the fore, since 1978.

Deep insights

Rigorous investment research capability that includes sector analysts, responsible investment team, data scientists, thematic analysts and forensic accounting.

Collaborative approach

Building partnerships with clients, Newton recognises the power of external alliances to leverage change on scale.

Bold decisions

A Conviction-led approach to investing, stepping away from indices and ensuring engagement is done for the benefit of the portfolio.

Active ownership

Consideration of material and relevant environmental, social and governance risks, issues and considerations into investment research reinforced by active engagement and voting to deliver better outcomes.

Newton aims to optimise performance for its clients by investing in what it believes to be well-managed, sustainable companies and governments.  Its sustainable strategies seek to support – invest in – entities that are:

Solutions providers

Companies that are tackling the most pressing social and environmental needs as identified in Newton’s sustainable taxonomy.

Balance stakeholders

Companies integrating the highest standards of sustainability into their business models to minimise any negative impacts on society or the environment.

Transition

Companies that are explicitly committed to transforming their business models for defined social or environmental benefits.

Avoiding market failures

Actively omitting companies involved in areas of high social cost, environmental degradation, exploitative monopolies or violators of the UN Global Compact.

Sustainable ‘red lines’

Sustainable ‘red lines’, with responsible investment team validation, seek to ensure there is no investment in security issuers that:

  • Breach the UN Global Compact
  • Are incompatible with a 2˚C world
  • Are deemed to have material ESG risks which are likely to negatively affect future performance and are associated with significant social or environmental harm

The strategies seek to avoid investing in companies that participate in specific areas of activity that Newton deems to be harmful from an environmental and/or social perspective.

Why Newton Investment Management?

Brought to you by Newton Investment Management

    Scale
    Expertise recognised
    Commitment
    in practice
    Experience
    Solution
    focus
    Logo icon
    1circle-filled-01

* Source: Newton Investment Management as at 30.06.2022
i Source: UN PRI, 2020

Solution focus

Newton's sustainable strategies seek a balance between the current and future needs 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 society and the environment.

Solution focus
Scale*
Expertise recognised
Commitment in practice
Experience

* Source: Newton Investment Management as at 30.06.2022
i Source: UN PRI, 2020

Associations and Partnerships

Part of the 100 Black Interns programme, an industry-led initiative to offer a range of investment internships to black students and recent graduates.

In March 2021, Newton joined the Net Zero Asset Managers initiative, demonstrating its commitment to work with clients to help fulfil their net-zero ambitions and to navigate portfolios through the complex energy transitions that are unfolding.

Newton's Sustainable Fund range

The value of investments can fall. Investors may not get back the amount invested.

BNY Mellon Sustainable Global Real Return Fund (EUR)

Fund Managers: Philip Shucksmith, Matthew Brown

BNY Mellon Sustainable Global Dynamic Bond Fund

Fund Managers: Team approach

BNY Mellon Future Earth Fund

 

Fund Managers: Philip Shucksmith, Paul Byrne

Meet the team

Newton’s dedicated responsible investment team is fully integrated across its investment process, working alongside the group’s conventional financial analysts to help inform investment decisions.

Headshot
Therese Niklasson

Global Head of Sustainable Investment

Sakshi Bahl Image
Sakshi Bahl


Responsible Investment Analyst

brennen-niall
Niall Brennan

Co-Head of Responsible Investment Data Integration

tanushree-chandhok
Tanushree Chandhok

Stewardship analyst

ragi-khimasia
Ragi Khimasia

Responsible investment analyst

law-jennifer
Jennifer Law

Head of Stewardship

McAllister-Lloyd
Lloyd McAllister

Head of ESG Research

Alexander Parkinson image
Alexander Parkinson

Co-Head of Responsible Investment Data Integration

parag-saxena
Parag Saxena

Responsible investment analyst

White-Rebecca
Rebecca White
Responsible Investment Analyst
onkar-jagtap
Onkar Jagtap
Responsible Investment Analyst
amit-khandelwal
Amit Khandelwal
Responsible Investment Analyst
antoine-najm
Antoine Najm

Stewardship analyst

 

anchit-sharma
Anchit Sharma

Stewardship analyst

 

 

diya-choudhury
Diya Choudhary

Stewardship analyst

harish-venkatachalam
Rebecca White

Responsible investment data analyst

 

shalin-vora
Shalin Vora

Responsible investment data analyst

 

Resources

Achieving real-world outcomes

Newton’s global head of sustainable investment Therese Niklasson explains why it is vital for investments to make a real-world impact.

Investments,Newton,Sustainable Investment

For a full list of risks applicable to this fund, please refer to the Prospectus or other offering documents. Please refer to the prospectus, and the KIID before making any investment decisions. Documents are available in English and an official language of the jurisdictions in which the Fund is registered for public sale. Go to fund-centre.

1 While Newton’s final target of having 100% of its financed emissions covered by credible transition plans by 2040 necessarily implies that all of its global assets under management (AUM) will be committed to net zero emissions by that point, currently 67% of its AUM (as distinct from financed emissions) are subject to the initiative.

2 ‘Financed emissions’, global assets under management’ or ‘AUM’ refers to the combined assets under management of Newton Investment Management Ltd and Newton Investment Management North America LLC.

Important information

Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA), BNY Mellon Fund Managers Limited (BNYMFM), BNY Mellon Fund Management (Luxembourg) S.A. (BNY MFML) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA, BNY MFML or the BNY Mellon funds.

Assets under management (AUM) relates to the combined assets managed by the Newton Investment Management group. From 1 September 2021, Newton group of companies includes Newton Investment Management Limited (NIM) and Newton Investment Management North America LLC (NIMNA).

1084198