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 are assessed on our approach to, and implementation of, ESG integration throughout our investment process, and on 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 our approach to, and implementation of, ESG integration throughout our investment process, as well as on 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 analysis): 23%
  • Fixed Income – SSA (sovereign, supranational and agency bonds): 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.

Any reference to a specific security, country or sector should not be construed as a recommendation to buy or sell this security, country or sector. Please note that strategy holdings and positioning are subject to change without notice.

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