Dutch asset manager NN Investment Partners (NN IP) has partnered with data provider South Pole Group to strengthen the integration of ESG criteria in its investment decisions.
South Pole Group provides information on companies’ carbon emissions, waste and water use.
NN IP said this partnership will enable it to gain accurate insights across all asset classes into the emissions intensity of companies and to meet the most detailed information requirements posed by clients.
It is the manager’s belief that companies that are able to use resources efficiently are less likely to experience negative shocks due to resource scarcity, and are more likely to outperform inefficient peers in the event of new government legislation.
Jeroen Bos, head of Equity Specialties at NN IP, commented: “We have a fiduciary duty towards our clients to invest in our client’s best interests. Sound investment decisions start with having the right information.
“The solution provided by South Pole Group provides an important add-on to the other ESG information on companies and countries that we have from other partners, brokers and proprietary internal research.
“Moreover, this tool allows us to further enhance the quality of our investment decisions as it provides wide-spread coverage of companies on Scope 1, 2 and 3* emissions as well as other environmental data such as water and waste.”
Alex Zuiderwijk, senior portfolio manager, Sustainable Investments, at NN IP said: “By adding this environmental screening tool to our investment process, we are able to gain a complete overview of our investments’ carbon emissions across Scopes 1, 2 and 3 – beyond the current market standard scope of 1 and 2.
“The availability of reliable data on water and waste allows us to enrich our environmental risk framework to account for additional natural capital indicators. Also, we are better able to provide on-demand ESG-reporting to our clients and to meet current and future information needs.”
“Understanding the carbon and climate exposure of portfolios is slowly becoming a housekeeping item within the financial industry, but the true leaders will be the ones who build their actions on the most reliable, comprehensive carbon and environmental data”, underlined Maximilian Horster, partner, Financial Industry, at South Pole Group.
NN IP had €195bn in assets under management as of 31 December 2016.