Neuberger Berman
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds—on behalf of institutions, advisors and individual investors globally. Neuberger Berman joined the Net Zero Asset Managers Initiative in November 2021 and made their Initial Target Disclosure in November 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
1.9% of total AUM (USD $7.9 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio coverage baseline
We are going through the firmwide calculation for our baseline performance and will disclose at the appropriate time, expected Q2 2023
Portfolio decarbonisation reference baseline
We are going through the firmwide calculation for our baseline performance and will disclose at the appropriate time, expected Q2 2023
Target(s):
Portfolio coverage target
Achieve >90% of portfolio (by value) with science-based (SBTi) validated targets (or equivalent as assessed by NB’s net-zero alignment methodology which conforms with the IIGCC target setting guidance) by 2030. Where regulatory considerations may impede pursuit of the targets as outlined above for certain accounts to initially be managed in line with net zero, an engagement strategy with issuers will be utilized.
Portfolio decarbonisation reference target
50% reduction in carbon footprint across Scope 1, 2, and material Scope 3 emissions by 2030 relative to a 2019 baseline and a subsequent decline to net zero by 2050 OR 30% reduction in carbon footprint across Scope 1,2, and material Scope 3 emissions by 2030 relative to a 2019 baseline and a subsequent decline to net zero by 2050 if the portfolio manager has also set a portfolio coverage target. Where regulatory considerations may impede pursuit of the targets as outlined above for certain accounts to initially be managed
in line with net zero, an engagement strategy with issuers will be utilized.
GHG scopes included:
The Carbon Footprint Reduction targets cover Scope 1, 2 and material Scope 3 emissions to the extent made possible by data coverage. Neuberger Berman recognizes that data availability is limited for some asset classes, particularly for Scope 3 emissions. On an individual portfolio basis, we determine whether data quality and coverage is sufficient to underpin robust target-setting.
Methodology:
Net Zero Investment Framework
Scenario(s):
The IPCC special report on global warming of 1.5°C, which implies linear 50% reduction by 2030.
Additional information
Proportion of AUM committed:
Neuberger Berman is taking a conservative bottom-up approach to building our net-zero AUM. Through our firmwide initiative we continue to engage with clients on setting net-zero targets for individual accounts that have expressed net-zero ambition but not yet set targets. Our interim AUM target, which is modestly above our actual committed AUM, includes a) accounts where we have received client approval to implement a decarbonization target and b) where the portfolio management team, through engagement strategies, commits to support investing aligned with net-zero emissions to maximize client outcomes. Our interim AUM also includes specific sustainable and impact funds that have affirmed their intent, consistent with their stated objectives and strategies, to invest with the goal of net-zero alignment.
Policy on coal and other fossil fuel investments:
Neuberger Berman’s Thermal Coal Involvement Policy states that we are committed across all of our co-mingled U.S. registered mutual, exchange traded and closed-end funds and international UCITS range, to subject investments in companies that have more than 25% of revenue derived from thermal coal mining or are expanding new thermal coal power generation to formal review and approval by Neuberger Berman’s ESG Committee before the initiation of any new investment positions in the securities of those companies. Some of our funds apply a Sustainable Exclusions or Enhanced Sustainable Exclusions Policy. These policies specify specific thresholds for the exclusion of fossil fuels, including thermal coal, unconventional oil and gas supply, conventional oil and gas supply, and electricity generation.
Thermal Coal Involvement Policy
Sustainable Exclusions Policy
Enhanced Sustainable Exclusions Policy