During the past year our established relationships with issuers in developed and emerging markets enabled us to have meaningful engagements with a number of management teams. We engaged on key ESG issues such as climate change, community relations, and human capital management.

In recent years, event-driven market disruptions have underscored the importance of active ownership and the analysis of material environmental, social, and governance (ESG) factors in fundamental credit research as well as investment decision-making. Asset managers who leverage their relationships with issuers are best positioned to manage these ESG risks and take advantage of ESG opportunities. Neuberger Berman views direct issuer engagement as a critical tool to mitigate portfolio risks while generating long term sustainable returns.