NFU Mutual is committed to practicing a responsible approach to investment that both supports positive environmental and social outcomes and delivers on investment performance targets.
Considering Environmental, Social and Governance principles
It’s our responsibility to invest our customers’ money carefully. Environmental, Social and Governance (ESG) principles are included in all investment decision-making and our fund managers consider factors such as the impact upon society or the climate, alongside traditional financial measures.
We are proud to be signatories to two of the industry’s fundamental bodies: the Principles for Responsible Investment (PRI) and the Stewardship Code. The PRI is supported by the United Nations and is an independent international network of investors working together to achieve six aspirations designed to develop a more sustainable global financial system. The Stewardship Code was introduced by the Financial Reporting Council to set high standards for those investing on behalf of UK savers and pensioners.
We are working to reduce the emissions of our investment portfolios, as part of our Net Zero Roadmap. To ensure we are able to monitor progress against this we have onboarded a market leading ESG data provider.
Our responsibilities when investing extend into our shareholder engagement and voting decisions. We believe that strong stewardship and engagement can lead to improved corporate behaviours and help accelerate change. Throughout 2022, our Fund Managers voted at 6,625 meetings on 66,884 resolutions, of which there were 11,141 votes against management.
All of our Fund Managers are qualified Chartered Financial Analysts or Members of the Royal Institute of Chartered Surveyors, depending on their area. Since it’s launch in 2019, we have also had several members of the Investment Management department achieve the CFA Certificate in ESG Investing.
To learn more about our approach to responsible investment:
Responsible property investment
NFU Mutual is committed to practicing a responsible approach to property investment that both supports positive environmental and social outcomes and delivers on investment performance targets.
Managing carbon is a key principle across our property portfolios, where our estimated carbon emissions have reduced by over 30% since 2019.
Our property investment assets under management account for £1.8bn (Dec 22) with 53% of the portfolio exposed to the most energy efficient properties (A or B rated).
In 2022, over £300m of property investment transactions were committed to assist in improving exposure to energy efficient investments.
Where NFU Mutual is responsible for electricity procurement, we only acquire green energy across our investment property portfolio.