Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Increased diversity within Neuberger Berman Private Markets: 1 in every 4 Senior Investment Team Members (SVPs & MDs) are Female; 32% of New Hires are Female; 32% of Global Business Heads (MDs) are Female.

Governance Achievements

• Established an ESG Committee to review ESG integration claims and processes; Awarded Top Score in the most recent UN-supported Principles for Responsible Investment (PRI) assessment report for overarching approach to ESG strategy and governance.

Climate Goals & Targets

Environmental Challenges

• Difficulty of isolating and quantifying improvements in company value from better stakeholder management, business continuity or enhanced brand recognition tied to ESG initiatives; Assessing ESG factors in private companies where there isn’t the same standardization of third-party ESG ratings and daily stock price movements as in public markets.

Mitigation Strategies

• Focus on assessing ESG factors likely to be financially material; Engagement with GP partners to share ESG best practices and play an active leadership role in ESG-related industry collaborations; Leveraging data analytics to track publicly available information to flag significant ESG-related issues.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (e.g., tornadoes, floods)

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Investing in instruments that help manage the risk of catastrophic climate events (NB ILS); Investing in energy efficiency and demand response programs.

Reporting Standards

Frameworks Used: TCFD, UN PRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Neuberger Berman Private Markets Impact strategy seeks social and environmental solutions that are aligned with the UN SDGs and relevant social and environmental themes.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Private Equity Manager of the Year – Asset Management Awards 2020

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• 99% of NBPE’s portfolio does not have significant adverse sustainability potential and 26% of the portfolio is deemed to have an overall positive sustainability potential or have an overall positive benefit to people or the environment
• 100% of global travel greenhouse gas emissions offset

Social Achievements

• Focus on Improving Gender Diversity: 32% Female – Private Markets Global Business Heads; 48% Female – Private Markets New Hires in 2019

Governance Achievements

• Upholds Strong Governance Principles; Complies with the AIC code of Corporate Governance

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN-supported Principles for Responsible Investment (PRI), Taskforce for Climate-related Financial Disclosures (TCFD)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• A+ Top Score in the most recent UN-supported Principles for Responsible Investment (PRI) assessment
• Private Equity Manager of the Year

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity
• Governance
• Responsible Investing

Environmental Achievements

• Launched a project to analyze the carbon footprint of the NBPE investment portfolio in 2021. Additional information will be shared at the 2022 Capital Markets Day.

Social Achievements

• Approximately 98% of NBPE’s portfolio has positive or neutral sustainability potential.
• Neuberger Berman has been integrating ESG into its investment process since 2007.

Governance Achievements

• Implemented a Sustainable and Responsible Investment Policy in 2020.
• Neuberger Berman has an A+ rating by PRI for private equity ESG integration.

Climate Goals & Targets

Environmental Challenges

• Decline in value of quoted holdings due to market volatility.
• Negative foreign exchange movements on non-US$ investments.
• More difficult operating environment for some private companies.
• Widening of the Company’s discount to NAV due to heightened economic uncertainty.

Mitigation Strategies

• Focus on investing in long-term secular growth and businesses with lower cyclicality.
• Active ownership and ability to drive improvements and react quickly to change.
• Highly selective in picking new investment opportunities.
• Monitoring and evaluating the discount to NAV in conjunction with brokers and advisors.
• Expanding investor relations initiatives.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNGC, OECD Guidelines for Multinational Enterprises

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor
• Environment
• Anti-Corruption
• Climate-Related Risks
• UN Sustainable Development Goals

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact (UNGC), OECD Guidelines for Multinational Enterprises, United Nations Guiding Principles on Business and Human Rights, Taskforce for Climate-related Financial Disclosure (TCFD)