Goal: NN Investment Partners (NN IP) is committed to investing responsibly and meeting clients' growing demand for products that generate solid financial returns while minimising social and environmental risks. NN IP's goal is to have a deep understanding of the risks and opportunities that the companies and countries it invest in are facing. This requires comprehensive carbon emissions data, in addition to data on water and waste intensity of investments
Challenge: NN IP needed a tool that captures environmental risk indicators across different asset classes. It was paramount for NN IP to find a solution with enough flexibility for portfolio managers and the ability to accommodate a changing investment universe. Importantly, NN IP needed a solution that would allow it to provide on-demand reporting for institutional clients.
Solution: South Pole's in-house screening tool provides NN IP with the raw data to holistically understand environmental risks across its investments. The screening tool includes a raw data feed that incorporates numerous environmental risk indicators. These include the water & waste intensity of individual companies, the GHG footprint of holdings, as well as the breakdown of green-brown revenue sources for energy and utilities companies active in the sectors most at risk in the ongoing transition to a low-carbon economy. In addition, the solution includes a tool that allows for portfolio level aggregation of the data and enables easy reporting to clients.