Responsible
Investment (RI) facts

1 January 2020 -31 December 2020

Responsible investment

Investing in the
well-being of the world

Our vision

Responsible investing is no longer a question of why, but why not? ”

Hanneke Smits CEO,
BNY Mellon Investment Management

Responsible investing is no longer a question of why, but why not? ”

Hanneke Smits CEO,
BNY Mellon Investment Management

We are trusted stewards of our clients’ assets

Creating prosperity for our clients while supporting companies we believe offer a sustainable future is a shared objective across BNY Mellon Investment Management. Using ESG data alongside conventional financial factors, our specialist investment firms analyse multiple perspectives to identify the opportunities they believe can deliver long-term value.

As one of the largest asset managers in the world we are a significant part of the financial system. We strive to respond to the most pressing global issues – social as well as financial. We are invested in the well-being of the world. To do so we engage with companies to create more effective risk management, responsible capital allocation and more sustainable business practices to generate greater benefits for our societies, economies and the environment.

Because we believe in being responsible. Because it is investing as it should be.

Our credentials

We’re ready

Our history in responsible investing dates back more than 40 years. Our investment firms are industry leaders. For decades they have been concerned with, and interested in, the repercussions diversity, the environment and labour practices can have on the profitability and longevity of the companies in which they invest. Despite the wealth of experience we possess, we recognise Responsible Investment is still in its infancy – a nascent trend consuming our industry. Here’s why we’re prepared.

Our investment firms

Our specialist investment firms have their own individual investment processes and culture. Yet we all have a core belief in common – that investing responsibly on behalf of our clients will help us to create the world and the future we all wish to see.

20+ factors
Alcentra assess and score companies on 20+ different ESG related risk factors.

Alcentra’s ESG policy was developed in 2016 and the group was an early adopter in its use analysing sub-IG credit.

Alcentra became a signatory of the PRI in June 2018 and are subject to its reporting standards and requirements.

Developed the proprietary Prime corporate ESG ratings, which covers 6,800 different entities in total; compromising 2,800 distinct issuers of debt, and 700,000 subsidiaries of the latter.

Awarded A+ ratings across fixed income categories in the PRI survey including corporate and sovereign debt.

RESPONSIBLE INVESTMENT FUNDS

Responsible Horizons Euro Corporate Bond Fund

BNY Mellon Fallen Angels Beta Plus Strategy

Source: Insight as at 31st March 2021.
Assets under management (AUM) are represented by the value of cash securities and other economic exposure managed for clients

Mellon leverages its “Quantamental” framework and proprietary rating system to embed ESG considerations in its investment process for its fundamentally driven equity strategies7. Using the framework enables Mellon to assess what its managers view as a company’s intrinsic value.

Mellon’s ESG rating framework bridges the gap between raw ESG data and fundamental analysis to create a nuanced picture of potentially investable companies (based on standard ESG weightings).

Source: Mellon as at 31st December 2020.

£6.2bn 

A+

rating in all areas of the 2020 PRI assessment.

Proxy voters in the UK since 1978.

Newton Investment Management (Newton) has its own responsible investment team dedicated to carrying out ESG research.

RESPONSIBLE INVESTMENT FUNDS

BNY Mellon Sustainable Global Dynamic Bond Fund

BNY Mellon Sustainable Global Real Return Fund (EUR)

BNY Mellon Sustainable Global Dynamic Bond Fund

BNY Mellon Sustainable Global Real Return Fund (EUR)

Source: Newton as at 31st March 2021.
1983
Sustainability has been at the heart of Walter Scott’s investment process since 1983.

Unique team structure means every investment manager has responsibility for ESG analysis.

A PRI signatory since 2017 with a 2020 rating of A+, A, A.

Source: Walter Scott as at 31st March 2021.

 

Our corporate credentials

While a period of uncertainty lies ahead for all of us, our clients, communities and society at large can continue to rely on BNY Mellon to be their trusted steward – with the ambition to have a more profound impact on the world around us.”

Todd Gibbons,

Chairman and Chief Executive Officer

Environmental

Maintained carbon neutral emissions for the sixth consecutive year9.

GENDER PAY GAP

Pay women more than 99% of what men are paid, globally.

Workplace equality

100% Perfect score on the Human Rights Campaign Foundation Corporate Equality Index.

Learning culture

690,000 hours of learning modules for employees given annually.

ENVIRONMENTAL

58% reduction in greenhouse gas emissions from 2008 Baseline10.

Resilient communities

Contributed US$33.4 m11 in annual support to communities around the world.

Environmental

Maintained carbon neutral emissions for the sixth consecutive year9.

GENDER PAY GAP

Pay women more. Promote women higher.

Workplace equality

100% Perfect score on the Human Rights Campaign Foundation Corporate Equality Index.

Learning culture

690,000 hours of learning modules for employees given annually.

ENVIRONMENTAL

58% reduction in green house gas emissions from 2008 Baseline10.

Resilient communities

Contributed US$33.4 m11 in annual support to communities around the world.

GENDER PAY GAP

Pay women more. Promote women higher.

Workplace equality

100% Perfect score on the Human Rights Campaign Foundation Corporate Equality Index.

Learning culture

690,000 hours of learning modules for employees given annually.

Enviromental

58% reduction in green house gas emissions from 2008 Baseline10

Resilient communities

Contributed US$33.4 m11 in annual support to communities around the world

Environmental

Maintained carbon neutral emissions for the sixth consecutive year9.

GENDER PAY GAP

Pay women more than 99% of what men are paid, globally.

Workplace equality

100% Perfect score on the Human Rights Campaign Foundation Corporate Equality Index.

Learning culture

690,000 hours of learning modules for employees given annually.

ENVIRONMENTAL

58% reduction in greenhouse gas emissions from 2008 Baseline10.

Resilient communities

Contributed US$33.4 m11 in annual support to communities around the world.

This Overview supplements information published in the BNY Mellon Corporate Social Responsibility Report. All data is at 31st December 2019 unless stated otherwise.

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Products and solutions

Sustainable Funds from Newton

Newton’s sustainable strategies aim to invest in sustainable sovereign bonds, and attractive companies with what managers believe to be sustainable business practices and no material, unresolvable ESG issues.

Responsible Horizons funds from Insight

Many investors are looking to achieve a positive environmental or social impact – to invest in sustainable businesses that will stand the test of time. Insight’s Responsible Horizons strategies looks to reflect long-term themes such as climate change and social inequality. They harness research powered by Insight’s proprietary Prime tool, which emphasises the best and avoids the worst performers on ESG issues.

policy statment

Responsible Investment Policy Statement

Our Responsible Investment Policy Statement, incorporating the investment policies and practices of our underlying investment firms, seeks to summarise and contextualise our stance. It focuses on the key elements of responsible investment: stewardship, the integration of longer-term material environmental, social and governance factors into investment research and decision-making and an understanding of the impact our investment decisions can and do have on the entities in which we invest.

1Source: BNY Mellon Investment Management, incorporating engagement figures from Newton, Walter Scott and Insight as at 31 December 2020.

2UN PRI = UN Principles of Responsible Investment. Source; BNY Mellon Investment Management, Alcentra, Insight, Mellon, Newton, Siguler Guff, and Walter Scott—are PRI signatories, with Insight signing as a founder member from 2006, followed shortly thereafter by Newton. Between them, these firms oversee over 80% of BNY Mellon’s total assets under management.

3Source: BNY Mellon, For Scope 1 and Scope 2 greenhouse gas emissions, including our data centers, as well as Scope 3 business travel emissions.

4As at the 31st March 2021.

5Impact bond: A bond that specifies its proceeds will be used to have a positive environmental or social impact.

6As at 31st December 2020. Source Mellon; Proxy Voting report 2020 as at 31st December 2020.

7With the exception of stable value and cash.

8Source: Newton as at 31st March 2021.

9For Scope 1 and Scope 2 greenhouse gas emissions including our data centers, as well as Scope 3 business travel emissions. As at 31 December 2020.

10Since 2008, excluding data centers. For source data, please see: www.bnymellon.com/globalimpact.

11Includes value of pro bono volunteerism, in kind donations, grants and charitable sponsorships made by BNY Mellon and employee donations to charities that qualify for our matching program.

The value of investments can fall. Investors may not get back the amount invested. Income from investments may vary and is not guaranteed.

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.
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