NN Investment Partners has integrated environmental, social and governance (ESG) criteria throughout the large majority of its assets under management (AuM).
According to the Amsterdam-based firm, 66% of its strategies now follow a “stringent” definition of ESG integration. This amounts to €176 billion of its total AuM.
Each investment analysis is required to integrate all three ESG factors, the Dutch asset manager said. This must then be demonstrable and documented in a consistent way, operating within its own responsible investing framework.
“Focusing on ESG factors enables our analysts to unlock potential value by identifying the associated opportunities and/or risk,” said chief investment officer Valentijn van Nieuwenhuijzen.
Its assets with ESG criteria already integrated also include those in the firm’s sustainable and impact strategies.
NN Investment Partners' sustainable strategies focus on “sustainability leaders” whilst its impact strategies target companies whose products or solutions make a “clear, positive” contribution to the United Nation’s Sustainable Development Goals.
Strategies that do not yet integrate the firm’s ESG criteria include asset-backed securities, derivative portfolios, and some multi-asset strategies. According to NN Investment Partners, this is mainly due to the nature of the asset class or portfolio construction.
The fund manager said, however, that it aims to further increase its AuM in which ESG criteria are integrated.
NN Investment Partners recently published a report stating that the majority of investors are content with their responsible impact.
In total, the company manages around €268 billion of assets.
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