TORONTO, Aug. 21,
2024 /PRNewswire/ - Manulife Investment Management
(Manulife IM), the world's largest manager of natural capital with
over $16 billion in assets under
management in timberland and agriculture1, has recently
released three reports detailing how it incorporates financially
material climate- and nature-related investment considerations into
its asset management and portfolio construction capabilities.
Interested market participants can use the insights from Manulife
IM's Natural Capital Sustainability report, Task Force on
Climate-Related Financial Disclosures (TCFD) report and Sustainable
and Responsible Investing (SRI) report, for deeper awareness about
sustainable investing and to assess various investment risks and
opportunities across public and private market asset classes.
The reports highlight Manulife IM's commitment in seeking to
deliver strong long-term investment performance, the importance of
natural capital to human health, and the opportunity for timberland
and agriculture assets to bring value to portfolios and to the
planet. As an example, within its climate and natural capital
investment solutions, Manulife IM has a strategy that provides
investors with an opportunity to invest in timberlands in a way
that creates high integrity carbon credits through enhanced
management practices which purposefully add to the stored carbon in
the forest.
"We are excited to share these reports with market participants
as we believe that climate-related risks and other sustainability
factors can have a material effect on long-term financial value
and, as a result, on our clients' investment objectives," said
Paul Lorentz, President & CEO of
Manulife IM. "Throughout all of our investment processes, we seek
to incorporate all financially material risks, including
sustainability factors, as our primary goal is to enhance the
returns of the capital we manage on behalf of our clients."
Manulife IM's most recent Natural Capital Sustainability report
highlights the importance of natural capital to institutional
investment portfolios, the dependency the world has on these
assets, and how these investments can create value beyond the
physical products they generate. Highlights include:
- Manulife IM's timberland investment properties planted over 50
million seedlings, produced lumber to build more than 100,000
houses, enough fiberwood to make approximately 2.2 million tons of
paper, and yielded enough biomass to produce electricity for the
equivalent of 1,500 American homes for a year;
- Manulife IM's integration of regenerative practices across its
agriculture portfolio continues to focus on producing more food
with a smaller footprint. During 2023, 100% of client properties
reported using at least one regenerative practice and 78% of
properties use four or more regenerative practices; and
- Progress reports on the firm's five nature targets, aligned
with the Finance for Biodiversity Pledge that are on track to be
fulfilled by 2025. The targets include improving collaboration and
knowledge sharing on assessment methodologies, incorporating
biodiversity into ESG policies, assessing the impact of investments
on biodiversity, using science-based targets to improve
biodiversity impact, and annual reporting to measure and assess
progress toward biodiversity goals.
"Natural capital is not just a concept; it's a measurable and
monetizable reality that has intrinsic value in supporting the
global economy," said Brian
Kernohan, Chief Sustainability Officer, Manulife Investment
Management. "We believe nature is a mispriced asset that provides
true economic and societal value for the benefit of all."
The latest TCFD report outlines how Manulife IM incorporates
climate-related risks and opportunities into investment decisions
through appropriate governance, strategy, risk management, and
metrics and targets.
Highlights from the TCFD report include:
- 90% of Manulife IM 's global real estate equity portfolio
earning certification of a green building standard, such as LEED,
ENERGY STAR, or BOMA
BEST;2
- Manulife IM removing an estimated 1.5 million tons of CO2e from
the atmosphere by its managed forests and farms on a five-year
rolling average; and
- Manulife IM seeks to increase access to the number and variety
of sustainable investing options available to its clients.
Manulife IM's latest SRI report provides insight into the firm's
approach to sustainable investing, including its governance,
stewardship information, its scorecard from the Principles for
Responsible Investment (PRI), and other sustainability milestones
and outcomes.
Highlights from the SRI report this year include the firm's:
- Publication of its inaugural nature report aligned with the
recommendations of the Taskforce on Nature-related Financial
Disclosures (TNFD), outlining the firm's approach to managing
nature-related risks and opportunities in its timberland and
agriculture businesses;
- Achievement of a GRESB 5 Star rating for the sixth consecutive
year;3
- Formalization of its sustainable investing strategy for its
private equity and credit platform, which included establishing
near-term priorities and longer-term commitments;
- Development of a firmwide client-directed exclusions framework;
and
- Publication of its water statement, which recognizes the
fundamental importance of water to human health, livelihoods,
ecosystems, the global economy, and the future of asset
management.
"As we navigate this dynamic space, our reporting looks to
provide comprehensive insights to help drive positive change and
foster long-term sustainability through our investment strategies.
We're committed to continue enhancing our reporting so that all our
stakeholders can get a clear picture of our efforts to manage
climate impact and risk exposures as well as enhance long-term
value creation," concluded Mr. Kernohan.
Please find more information about Manulife IM's approach to
sustainable investing online here:
https://www.manulifeim.com/institutional/global/en/sustainability.
About Manulife Investment Management
Manulife Investment Management is the brand for the global
wealth and asset management segment of Manulife Financial
Corporation (NYSE: MFC). Our mission is to make decisions easier
and lives better by empowering investors for a better tomorrow.
Serving more than 19 million individuals, institutions, and
retirement plan members, we believe our global reach, complementary
businesses, and the strength of our parent company position us to
help investors capitalize on today's emerging global trends. We
provide our clients access to public and private investment
solutions across equities, fixed income, multi-asset, alternative,
and sustainability-linked strategies, such as natural capital, to
help them make more informed financial decisions and achieve their
investment objectives. Not all offerings are available in all
jurisdictions. For additional information, please visit
manulifeim.com.
It should not be assumed that any ESG or sustainability
initiatives, standards, or metrics described herein will apply to
each asset in which Manulife Investment Management invests or that
any ESG or sustainability initiatives, standards, or metrics
described have applied to any individual prior investment of
Manulife Investment Management. There is no guarantee that any
initiatives or anticipated developments described herein will
ultimately be successful or achieve anticipated outcomes.
Environmental, social and governance (ESG) factors are only some of
many considerations that Manulife Investment Management takes into
account when making investment decisions, and other considerations
can be expected in certain circumstances to outweigh ESG
considerations. Any ESG or sustainability initiatives described
will be implemented with respect to a portfolio investment solely
to the extent Manulife Investment Management determines such
initiative is consistent with its broader investment goals.
Individual portfolio management teams may hold different views and
make different investment decisions for different clients, and
views may change over time. Investors should always read the
current investment services information or fund offering documents
before deciding to select an investment manager or to invest in a
fund.
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1.
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IPE research, as of
February 2024. Ranking is based on total natural capital assets
under management (AUM), which includes forestry/timberland and
agriculture/farmland AUM. Firms were asked to provide AUM and the
as of dates vary from 12/31/2022 to 12/31/2023.
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2.
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Based on square footage
of the gross floor area or building size, of properties in the
global portfolio. Totals from different certification standards do
not sum as properties with multiple certifications are only counted
once. Certifications are provided by LEED, ENERGY STAR
Certification, BOMA BEST, GBCA Green Star, BCA Green Mark, NABERS,
CASBEE, BOMA 360, and Fitwel.
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3.
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Based on GRESB results
released October 2023 that cover the 2022 time period. Manulife
Investment Management paid a per fund submission fee, per year. The
GRESB Rating is an overall measure of how well sustainability
issues are integrated into the management and practices of
companies and funds. For more information about the GRESB Real
Estate Assessment, please see
gresb.com/nl-en/real-estate-assessment.
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SOURCE Manulife Investment Management