We believe that climate change is a financially material issue affecting many industries and asset classes. Despite the urgency of climate change, we believe that this should be a time for optimism, driven by a convergence of technology and policy that could jumpstart efforts to address our climate challenges and present a timely opportunity to invest in a secular growth story. The resulting capex cycle could have significant benefits for key corporate players and investors while helping the world transition to a cleaner future.
At this early stage of net-zero adoption, we believe investors are better served taking a more nuanced and active approach to achieving their specific climate-investing goals. In partnership with our clients, we designed a proprietary Net-Zero Alignment Indicator, which seeks to capture an issuer’s current status and progress over time toward net-zero targets. It incorporates decarbonization targets and combines forward- and backward-looking inputs that were informed by the high-level expectations of the Institutional Investor Group on Climate Change (IIGCC). You can read more about the Indicator in our white paper, Net-Zero Alignment: Beyond the Numbers.
The Indicator is aligned with key industry climate transition risk frameworks including:
You can read more about the Indicator in a Harvard Business School case study, Investing in the Climate Transition at Neuberger Berman, written by Professor George Serafeim. The case study profiles Neuberger Berman and our client-focused approach to innovation. It explains our Net-Zero Alignment Indicator and how we have implemented it in climate transition fixed income and equity solutions.
We offer multiple net-zero aligned funds and strategies across our platform to meet differing client objectives.
Neuberger Berman Climate Transition Multi-Sector Credit Strategy
Solving for a given yield profile using an engagement-driven approach that targets net-zero alignment
Neuberger Berman Climate Transition Global Equity Strategy
Seeks to deliver the highest possible net-zero alignment and 50% carbon footprint reduction within a 1% tracking error
Neuberger Berman Climate Innovation Strategy
Targets long-term capital appreciation and exposure to the decarbonization theme through investing in climate innovation related technologies and activities
Neuberger Berman U.S. Equity Impact Strategy
Exposure to climate solutions with a quantified measure of avoided emissions in a concentrated portfolio
To learn more about how Neuberger Berman assesses climate-related issues and opportunities through our approach to governance, strategy, risk management, and metrics and targets, read our latest Task Force on Climate-related Financial Disclosures (TCFD) Report.
In November 2021, Neuberger Berman became a signatory to the Net Zero Asset Managers Initiative (NZAMI). We have set interim targets for assets where clients have directed us to manage accounts in line with net zero by 2050.
Though not enough to limit warming to 1.5°C, and weaker than some had hoped, the outcomes of the climate conference are better than many had feared.
In our second installment of The Fine Print of Indexation, we tackle the challenge of building net-zero-aligned portfolios.
Using today’s fossil-fuel profits to invest in the long-term growth and emissions reduction of clean and renewable power.
