The United Nations Responsible Investment Principles (PRI) revealed 20 investment management firms that they believe excel in climate reporting and made the cut as part of their leadership group in 2020.
The initiative is part of the PRI’s effort to put signatories at the forefront of responsible investing and highlight the work of leading signatories.
To be considered for the Leaders’ Group in 2020, the signatories had to demonstrate their organisation’s strategic approach to aligning with the Task Force on Climate-related Financial Disclosures (TCFD) in their responses to the PRI reporting framework.
The PRI evaluated more than 2,000 signatories to select 36 investment firms and wealth holders with leading practices.
The following asset managers belong to the management group this year, grouped according to their asset size:
- Neuberger Berman
- Legal and general investment group
- State Street global advisor
- Axa investment manager
- Manulife investment management
- APG asset management
- Payden & Rygel
- AMP capital investments
- Charter hall group
- Federated Hermes’ international business
- Australian ethical investment
- Bridges Fund Management
- ESG portfolio management
On joining the leadership group, Jonathan Bailey, Head of ESG Investments at Neuberger Berman said, ‘Physical and transitional climate risks have been a focus of our engagement efforts with portfolio companies, including our innovative NB25 + proxy voting initiative.
‘And at the insistence of our portfolio managers, we have formalized and are in the process of implementing an exclusion policy for the expansion of steam and coal-fired power plants as our investment professionals believe there is no economic reason to create new direct investments in these assets, “added Bailey .
PRI said all 20 companies demonstrated leading climate reporting practices. In evaluating the signatories, the organization focused on governance, saying that the leadership group members have a well-developed process for reporting climate-related practices.
Another important aspect was strategy, with leading companies reporting on a range of climate-related risks and opportunities identified using scenario analysis and / or transition and physical risk models in portfolios and companies.
After all, selected companies are ahead of the times when it comes to integrating climate-related risks into risk management and set themselves both long-term and short-term goals, for example using climate indicators, in order to compare their portfolios and track performance over time.