Durability with substance, not durability in numbers


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Proposed by Ninety-one

Oct. 20, 2021 / CSRwire / – Ninety One, an active global investment manager, has released its third annual Global Environmental Impact Report, which provides detailed analysis of what we call “the sustainability ”for every asset within the global environment portfolio: an assessment of each company’s contribution to a greener and cleaner future, evidence of their positive environmental impact and assessment of other ESG considerations.

The green shoots of political action on climate change are starting to take place in several regions, as evidenced by 73% global emissions now covered by national net zero commitments. In addition, two important initiatives – the European Sustainable Finance Disclosure Regulation (SFDR) and the Net Zero Asset Owners and Asset Managers alliances – have changed the landscape for the better for investors. However, despite some political and political progress, only six countries have in fact turned their commitments into binding law and investments in decarbonization remain well below what is required, as the annual amount of decarbonization required to reach net zero continues to rise.

Deirdre Cooper, Portfolio Manager at Ninety One

Deirdre Cooper, Co-Portfolio Manager, Global Environment: “We wholeheartedly support initiatives that promote greater transparency in the area of ​​sustainable development; however, we are concerned about over-reliance on ‘sustainability in figures ” and the tendency of third-party data sources to oversimplify problems. In our opinion, no single data point can describe whether a business is leading the transition to net zero, or whether it is truly sustainable. Portfolio-level metrics will not always be indicative of the underlying sustainability performance of our investments, which is why we are committed to providing detailed position-level reports, revealing not only the data but the stories behind them. underlying. We believe this detailed job level report contributes to the concept of ‘sustainability with substance’.

Carbon reporting

There have been improvements in the reporting of portfolio companies on carbon risk (carbon emissions from scopes 1, 2 and 3) and impact (carbon avoided[1]), but as expected, the rate of improvement slowed. Almost 80% of companies now report Scope 1 & 2 emissions, with 40% of companies now provide comprehensive carbon risk reports and disclosures. In fact, three Chinese holdings (Xinyi Solar, Wuxi Lead Intelligent and Sanhua Intelligent Controls) and NextEra Energy, the world’s largest renewable energy supplier, reported for the first time.

These reporting improvements are welcome, but they should not remove the need for fundamental analysis of carbon data, which continues to be a vital overlay.

Carbon risk and impact

Over the past year, more than two thirds of portfolio companies have reduced the intensity of Scope 1 and 2 emissions, and two-thirds increased their absolute “avoided carbon”. Besides, a third of companies have reduced the intensity of their Scope 3 emissions. Proactive engagement with companies remains essential to help them understand their Scope 3 emissions, and then target reductions. Now, 14 of 25 the holdings of portfolio companies have explicit carbon emission reduction targets, and 35% of the securities in the portfolio have targets approved by the Science Based Targets (SBTi) initiative.

photo of Graeme Baker, portfolio manager at Ninety One
Graeme Baker, Portfolio Manager at Ninety One

Graeme Baker, Co-Portfolio Manager, Global Environment: “As we strive to allocate capital to companies that we believe are developing products and services that will help the world get as close to 1.5 degrees as possible, we don’t yet think we are living in a world of 1.5 degrees. All businesses rely on the communities in which they operate to achieve their climate goals. However, we remain hopeful that we will start to see more regulatory measures that will allow us to make this statement in the future. This would not only be great news for the planet, but we also believe in the growth and performance prospects of our businesses. “

[1] Carbon emissions avoided by using a product that has less carbon emissions than the status quo

About ninety-one
Ninety One is an independent and active global investment manager dedicated to delivering compelling results to its clients, managing $ 190 billion in assets as of June 30, 2021.

Founded in South Africa in 1991 under the name Investec Asset Management, the company began offering domestic investments in an emerging market. In 2020, almost three decades of organic growth later, the company separated from the Investec Group and became Ninety One. Today, the company offers distinctive active strategies in equities, fixed income, multi-assets and alternatives to institutions, advisers and individual investors around the world.

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All investments carry a risk of loss of capital. The information in this press release is intended primarily for journalists and should not be relied on by private investors or any other person to make financial decisions. Further, the material contained in this document is for informational purposes only and should not be construed as an offer or a solicitation of an offer to buy or sell securities, either generally or in any jurisdiction where offer or sale is not permitted. Offers are made only by means of a prospectus or other offering documents and on condition that an investor meets certain suitability standards and any other applicable requirements required by law. Any opinions expressed about the markets, securities or companies in this press review accurately reflect the personal views of the individual fund manager (or team) appointed. Although the opinions expressed are honest, they do not constitute guarantees and should not be relied on. Ninety One in the normal course of its business as a global asset manager may already own or intend to buy or sell the mentioned stocks on behalf of its clients. The information or opinions provided should not be taken as specific advice on the merits of an investment decision.

This press release may contain statements about expected or anticipated future events and financial results which are forward-looking in nature and, therefore, are subject to certain risks and uncertainties, such as general economic, market and business, new laws and regulations. general and competitive economic actions, factors and conditions and the occurrence of unforeseen events. Actual results may differ materially from those shown here. Telephone calls may be recorded for training, supervisory and regulatory purposes and to confirm investor instructions. Ninety One’s privacy notice is available at www.ninetyone.com/privacynotice.

Kimberly Weinrick, ninety-one
[email protected]

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Ninety One is an independent and active global asset manager dedicated to delivering compelling results to its clients, managing more than $ 190 billion in assets as of June 30, 2021. In the Americas, Ninety One offers a comprehensive portfolio of investment strategies and solutions covering equities, fixed income, multi-asset, sustainable and alternatives led by teams of specialists who invest in global, emerging and frontier markets. For over a decade, the firm has engaged with clients in the United States, Canada and Latin America, developing trusted partnerships by providing local expertise with a global platform. Founded in South Africa in 1991, under the name Investec Asset Management, it started with domestic investments in an emerging market. In 2020, almost three decades of organic growth later, the company separated from the Investec Group and became Ninety One. Today, Ninety One offers distinctive active strategies to institutions, advisors and individual investors around the world. # # #

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