Jonathan Bailey assumed oversight of ESG and impact investing in 2017. Since then, he has more than quadrupled the team to 25 dedicated professionals spread globally, ranging from ESG generalists and subject-matter experts to engagement specialists. He also spearheaded a move to merge both investment and stewardship professionals into one team. This connection, along with strong support from an ESG advisory council made up of external experts, helps maintain strong alignment when it comes to investment decisions, to the firm’s dedication to net zero, and more.
Using its increased resources, the firm provides strong disclosures for impact funds, as well as published case studies detailing engagements with portfolio companies. For funds like Neuberger Berman Municipal Impact NMIIX, investors can gain access to an impact analysis profile that outlines the themes addressed by fund proceeds and detailed reviews of select holdings. While transparency is strong for impact mandates, it would be useful if such metrics were more widely available. Neuberger Berman divides its funds into four categories according to the intensity of ESG integration. However, portfolio managers retain autonomy over their own processes, which—while common among competitors — can lead to inconsistency in application. More detailed fund metrics would improve transparency for investors seeking to understand the effect of ESG considerations on portfolio decisions.
The firm’s stewardship practices approach best practice. Engagement and proxy-voting professionals have been positioned to work more closely with investment professionals, which helps guide engagement activity with portfolio companies and oversee client-directed ESG priorities. The firm’s NB Votes program, which discloses proxy votes and rationales ahead of the voting process itself, stands out among peers and signals to both investors and other asset managers the firm’s stance on ESG issues.