At Newton, responsible investment has been integral to our investment process since our inception in 1978, when we began actively voting our clients’ shares. In 1998, we started to run exclusions-based portfolios, and since then our responsible investment approach has grown to include environmental, social and governance (ESG) integration across all our strategies, alongside active engagement with the management of the companies that we invest in. Over the last two years, we have taken our responsible approach further, by launching focused sustainable investment products.

This long heritage, combined with our long-term investment outlook, means that climate change has naturally been an area of focus for some time, as we seek to help curb and mitigate the impact of global warming on the world around us as well as trying to identify the associated opportunities and risks.

This article will address the topic in the following ways:

  • Present the stark realities of climate change by examining the scientific evidence that man-made emissions are contributing to the accelerated change in the Earth’s temperature.
  • Look at the international policies put in place that seek to combat global rising temperatures and avoid irreversible change to the global environment.
  • Examine initiatives developed at Newton, both internally and within our wider peer group, that seek to mitigate the impact of climate change.
  • Look at how we engage with companies to understand the risks posed by climate change to the successful delivery of their business strategies, and to push for better disclosure on their management of carbon risks and opportunities and the reduction of greenhouse-gas emissions.
  • Showcase how our sustainable and thematic investment approaches can be a useful tool for investors seeking to address climate-related investment risks and opportunities.

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.