US Institutional Responsible investment Responsible investment quarterly report

Any investment policies, processes or activities described in this report relate to investment strategies managed from the United Kingdom by Newton Investment Management Limited. This report does not apply to investment strategies managed from the United States by Newton Investment Management North America LLC.

Q2 2022 Spotlight on

ESG and Data: The Need for Consistency

VERTICAL FARMING: A GROWING OPPORTUNITY

We share our key learnings from a recent visit to a vertical farm.

Read more

Highlights from Q2 2022

  • We voted at
    1838
    Annual General Meetings
    +
    108
    Extraordinary General Meetings
    on behalf of our clients
  • We engaged with
    67
    issuers
    for the purpose of raising ESG concerns or seeking further information.

  • Examples of engagement with companies included matters such as:

    • climate change
    • human capital management
    • food and nutrition
    • compensation
    • diversity
    • board effectiveness
    • strategy
 

Voting Profile: Q2 2022

During the quarter, we exercised our clients’ voting rights at a total of 1946 shareholder meetings.

Across all regions, votes were instructed against management recommendations on 3918 separate resolutions, which equated to 64% of the 1946 meetings.

Read more

1 In favor of management on all resolutions.
2 Against management on one or more resolutions. Including abstentions and withhold votes where there was no option to vote against.
3 Took no action owing to share blocking.

13

took no action3

692

in favor of management1

0

abstained

1241

against management2

Key Issues of Concern

ESG quality reviews

We consider material and relevant ESG risks, issues and opportunities of all companies our global sector analysts are considering recommending for investment.

Insufficient independence on board or key committees.

Insufficient board diversity.

US executive compensation arrangements not being aligned sufficiently with performance.

US company auditors serving for multiple decades.

Article amendments which would limit or reduce shareholder rights.

Companies’ progress in managing climate risks.

Read more
Quality

Take a Closer Look

Keeping the lights switched on
Blog

Keeping the Lights Switched On

Energy security and decarbonization: are they mutually exclusive?
August 31, 2022
Defence stocks and ESG
Blog

Defense Stocks and ESG

We outline the key ESG issues related to defense and how we integrate these in our investment approach.
August 22, 2022
How is Newton aiming to achieve net-zero carbon emissions?
Audio

How is Newton Aiming to Reach Net-Zero Carbon Emissions?

Why Newton is focused on the Science Based Targets initiative in the drive to achieve net zero.
July 29, 2022

Important Information

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.

This is a financial promotion and has been issued by Newton Investment Management Ltd.

‘Newton’ and/or ‘Newton Investment Management’ is a corporate brand which refers to the following group of affiliated companies: Newton Investment Management Limited (NIM) and Newton Investment Management North America LLC (NIMNA). NIMNA was established in 2021 and is comprised of the equity and multi-asset teams from an affiliate, Mellon Investments Corporation. In the United Kingdom, NIM is authorised and regulated by the Financial Conduct Authority (‘FCA’), 12 Endeavour Square, London, E20 1JN, in the conduct of investment business. Registered in England no. 01371973. NIM and NIMNA are both registered as investment advisors with the Securities & Exchange Commission (‘SEC’) to offer investment advisory services in the United States. NIM’s investment business in the United States is described in Form ADV, Part 1 and 2, which can be obtained from the SEC.gov website or obtained upon request. Both firms are indirect subsidiaries of The Bank of New York Mellon Corporation (‘BNY Mellon’).

Newton provides discretionary and non-discretionary investment advice to institutional clients, including US and global pension funds, sovereign wealth funds, central banks, endowments, foundations, insurance companies, registered mutual funds, other pooled investment vehicles and other institutions. Its current office locations include London, Boston, New York and San Francisco.

This document may not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or not authorised. Certain information contained herein is based on outside sources believed to be reliable, but their accuracy is not guaranteed. The opinions expressed in this document are those of Newton and should not be construed as investment advice.

Personnel of certain of our BNY Mellon affiliates may act as: (i) registered representatives of BNY Mellon Securities Corporation (in its capacity as a registered broker-dealer) to offer securities, (ii) officers of the Bank of New York Mellon (a New York chartered bank) to offer bank-maintained collective investment funds and (iii) associated persons of BNYMSC (in its capacity as a registered investment adviser) to offer separately managed accounts managed by BNY Mellon Investment Management firms.

In Canada, Newton Investment Management Limited is availing itself of the International Adviser Exemption (IAE) in the following Provinces: Alberta, British Columbia, Ontario and Q and the foreign commodity trading advisor exemption in Ontario. The IAE is in compliance with National Instrument 31-103, Registration Requirements, Exemptions and Ongoing Registrant Obligations.

Any reference to a specific security, country or sector should not be construed as a recommendation to buy or sell investments in those securities, countries or sectors. Please note that portfolio holdings and positioning are subject to change without notice.

Newton manages a variety of investment strategies. Whether and how ESG considerations are assessed or integrated into Newton’s strategies depends on the asset classes and/or the particular strategy involved, as well as the research and investment approach of each Newton firm. ESG may not be considered for each individual investment and, where ESG is considered, other attributes of an investment may outweigh ESG considerations when making investment decisions.