22nd November 2018

Nutmeg to provide scores for ESG investments

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Nutmeg is to provide environmental, social and governance scores for its entire investment range while launching its socially responsible ESG portfolios, the company has announced.

The online investment management firm’s ten portfolios will now show a range of scores, calculated using independent data points from MSCI, a provider of ESG data and analytics.

Each portfolio will be scored by the investment team at Nutmeg to ensure customers understand the impact their investments are having and how well their portfolio aligns with their values.

The data will provide investors with information of how each portfolio ranks for environmental, social, and governance principles. It will look at what’s being done to limit the carbon footprint, payment of corporate tax and the measures implemented to guard against supply chain corruptions.

Nutmeg is currently one of a handful of UK wealth managers that have signed up to the Principles of Responsible Investment (PRI).

The PRI is an independent organisation, supported by the United Nations, that works to understand the investment implications of ESG factors.

Shaun Port, chief investment officer at Nutmeg, said: “Whether it’s ethical, green, sustainable, ESG, or socially responsible, it isn’t always clear what these labels mean for investments, or investors.

“For too long many investments have hidden behind these terms without defining the purpose they are serving. There’s very little information for people who want to know if their investments are in line with their values; be they reducing carbon emissions, gender equality on boards or a business’ management of their data. We’re changing that.

“Hard as we may try, no investment portfolio can be designed to dodge every controversy, but we’re committed to improving choice in the investment world, being transparent about how sustainable our portfolios are and empowering investors to decide what’s right for them.”

Eric Moen, managing director of MSCI ESG research, said: “We are happy to be working with Nutmeg, to respond to growing demand from retail investors for more transparency and reporting on ESG metrics.

“Nutmeg’s efforts align with trends we are seeing more broadly from investors who want to understand what they own, such as their portfolio’s carbon risk, overall ESG quality, sustainable impact exposure and how it compares to a benchmark.”


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