Neuberger Berman, a private, independent, employee-owned investment manager has joined the Net Zero Asset Managers Initiative, which has the goal of achieving net zero emissions in line with the Paris Agreement. As of 1 November, 2021, the initiative included 220 signatories representing USD57 trillion in assets under management.
The firm will initially partner with select clients that share an ambition to achieve net zero emissions by 2050 or sooner. As part of this commitment, the firm’s portfolio managers across the sustainable investing strategies of its public equities and public taxable fixed income funds have affirmed their intent, consistent with their stated objectives and strategies and pursuant to their own targets, to invest with the goal of attaining net zero alignment.
In conjunction with joining the Net Zero Asset Managers Initiative, Neuberger Berman is pleased to announce that it has formed an ESG Advisory Council to provide expert external advice on key sustainability topics, including net zero.
George Walker, Chairman and CEO, Neuberger Berman, says: “We believe that joining the Net Zero Asset Managers Initiative as well as the formation of the Neuberger Berman ESG Advisory Council is a natural extension of our leadership in the ESG investing landscape. Neuberger Berman already manages net zero mandates for climate-focused clients, including a EUR1.3 billion multi-asset credit mandate from the Brunel Pension Partnership, an institution dedicated to responsible investing. We look forward to designing leading climate-related investment solutions in partnership with our clients globally.”
Jonathan Bailey, Head of ESG Investing, Neuberger Berman, adds: “We believe financial institutions have a key role to play in mitigating climate change and the risks it presents to businesses and the global economy. Incorporating material climate risks and opportunities into our investment process aligns with our fiduciary responsibility and long-term investment philosophy of seeking to maximise risk-adjusted returns for our clients. Furthermore, we believe we have a clear responsibility to actively engage with companies that have not yet aligned their business model with the transition to net zero in order to mitigate the risk of issuers being burdened with stranded assets.”
The Neuberger Berman ESG advisory council consists of respected thought leaders across the ESG landscape including:
George Serafeim – Charles M Williams Professor of Business Administration and Chair of the Impact-Weighted Accounts Project at Harvard Business School
Ben Caldecott – Director, Oxford Sustainable Finance Program & Founding Director of the UK Centre for Greening Finance & Investment
Mindy Lubber – President and CEO of Ceres, a sustainability focused non-profit organization based in Boston, MA
Vijay Advani – Former executive chairman of Nuveen, the investment management arm of TIAA, and current Chairman of the US-India Business Council Global Board of Directors
The ESG Advisory Council’s initial focus will be to review and provide feedback on Neuberger Berman’s approach to pursuing portfolio alignment with a net zero emissions objective. In addition, the ESG Advisory Council will focus on enhancing the methodologies used to measure sustainable outcomes.
As a global leader in the asset management industry, Neuberger Berman is committed to staying at the forefront of ESG investing to achieve a more inclusive and sustainable future. In its most recent assessment, the UN-supported Principles for Responsible Investment designated Neuberger Berman as a “PRI Leader”, an award achieved by only 20 of its over 2,100 PRI signatories.
