NEAM’s fundamental approach to ESG is an "integrated" approach whereby ESG considerations are used to complement the traditional quantitative and qualitative research completed by our corporate credit analysts. Third party ESG data together with traditional financial factors are identified and assessed to form investment opinions.
We have increasingly integrated ESG factors into our investment process and formalized our commitment to this investment approach in becoming a signatory to the Principles for Responsible Investment (“PRI”) in June 2019 and we have been guided by these principles in defining how ESG factors are integrated within our firm. As of September 2023, 23% of NEAM’s Investment Professionals have completed the PRI Academy’s Foundations in Responsible Investment course.
In 2021, NEAM became a "Supporter" of the Task Force on Climate Related Financial Disclosures (TCFD). We believe that a globally consistent, standardized framework for ESG related disclosures is essential in facilitating asset managers to fully integrate ESG factors into investment analysis and decision-making. We also acknowledge the importance of climate change and support the goal of the UNFCCC 2015 Paris Agreement of limiting the increase of global temperature to below 2° Celsius (preferably 1.5° Celsius) above pre-industrial levels. We commit to supporting those of our insurance clients who aim to play a role in achieving this goal.