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Ninety One

PRI reporting framework 2020

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Innovation

SG 18. Innovative features of approach to RI

18.1. Indicate whether any specific features of your approach to responsible investment are particularly innovative.

18.2. Describe any specific features of your approach to responsible investment that you believe are particularly innovative.

Responsible investing is in our investment DNA. Launched in South Africa in 1991, we have seen and experienced the difference ESG issues has on societies and particularly the companies we invest in. Our home market has shown us how economic growth, social inclusion and environment sustainability collide and how important our role is. In particular, we our long history of private markets investing in Africa has taught us the meaningful impact we can have on companies.

Over the last year/towards the end of 2018 we have launched two dedicated sustainability strategies. We believe that our strategies are highly differentiated, and we summarise them below:

Global Environment

The Strategy looks to invest in companies likely to benefit from the process of sustainable decarbonisation based on proprietary screening models. It looks to allocate capital efficiently towards those companies that could be the long-term beneficiaries of the energy transition.

  • Universe screen

Screen on environmental revenues and quantified carbon avoided to identify those companies that will benefit from a structural growth tailwind as we start to decarbonize our economy.

  • Idea generation

Screen for companies on key financial, ESG and competitive advantage metrics.

  • Fundamental analysis

We build a detailed investment case for each idea and focus on:

  • Technology, cost and market analysis
  • Company analysis
  • Valuation
  • Portfolio construction

The best ideas are used to construct concentrated long-term portfolios in line with risk constraints.

  • Engagement and monitoring

We meet management and engage with portfolio companies on a regular basis.  We publish a detailed annual impact report with key environmental and carbon footprinting data for every company in the portfolio.

 

UK Sustainable Equity

The Strategy intentionally allocates capital towards those companies that have a positive impact towards key societal or environmental themes and make a significant contribution towards the transition to a more sustainable future. The strategy sets out to understand three pillars of sustainability:

  • Financial sustainability: through our tried and tested quality research framework
  • Internal sustainability: assessing ESG risks and operational sustainability such as carbon intensity, supply chain policies, training and health and safety records
  • External sustainability: analysing the products and services against the Ninety One thematic framework.

Through detailed proprietary fundamental research to assets of measure these three pillars of sustainability, the strategy is well placed to deliver a sustainable investment return and positively contribute to a better future.


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