BNY Mellon Investment Boutique Develops Investment Approach with Mercer, Imprint Capital
NEW YORK and LONDON, Oct. 20, 2014 /PRNewswire/ -- Mellon Capital, the San Francisco-based investment boutique of BNY Mellon, has launched its Carbon Efficiency Strategy with $100 million in funding from The McKnight Foundation. The strategy is designed to provide investors with lower carbon emissions exposure than the broad U.S. equity benchmark.
Mellon Capital developed the Carbon Efficiency Strategy in collaboration with Mercer, a global consulting leader in talent, health, retirement and investments. Imprint Capital, a registered investment advisor that works with foundations, families, and financial institutions, also contributed. The strategy invests in the broad U.S. stock market, underweighting inefficient carbon emitters, such as utilities over-exposed to coal generation, while overweighting companies with lower carbon intensities. Additionally, the strategy bars investments in coal mining and production companies.
Carbon intensity is defined as greenhouse gas emissions per unit of sales.
McKnight is a Minneapolis, MN-based family foundation working across multiple programs and geographies to improve the quality of life for present and future generations. The creation of the Mellon Capital Carbon Efficiency Strategy followed McKnight's June 2014 announcement of an impact investing commitment of $200 million to support transitions to a low-carbon economy and sustainable regional development in Minneapolis-St. Paul. McKnight's $100 million investment in the Carbon Efficiency Strategy is in addition to that previously announced commitment.
McKnight's President Kate Wolford said, "Innovative new approaches like the Carbon Efficiency Strategy give foundations leverage in choosing how to invest, and how we engage with businesses as shareholders. This supports McKnight's commitment to accelerating the transition to a low-carbon economy."
"The goal of our Carbon Efficiency Strategy is to provide broad U.S. equity exposure, while minimizing investment in companies with inefficient carbon emissions and emphasizing companies that are committed to more efficient operations," said Gabby Parcella, chief executive officer of Mellon Capital. "We are seeing growing numbers of foundations, universities and other institutional investors across the globe interested in impact investing where they can address environmental challenges through their investment portfolios."
"We overweight environmentally efficient companies because we believe they may realize a competitive advantage," Parcella said.
Mellon Capital, a signatory of the United Nations Principles for Responsible Investment, incorporates an engagement approach into the strategy through investor initiatives and shareholder resolutions. Mellon Capital is also a signatory to the CDP Climate Change, Water and Forestry programs, which works with market forces to motivate companies to disclose and reduce their impacts on the environmental and natural resources and is a respondent through BNY Mellon's program response, which earned a prefect disclosure and performance score for both 2013 and 2014.
Mellon Capital manages approximately $49 billion in strategies for companies pursuing sound environmental, social or corporate governance practices and has more than $370 billion in total assets under management.
About Mellon Capital
Founded in 1983 by innovators in the investment management field, Mellon Capital Management Corporation applies a disciplined and analytical approach to global investment management strategies. As of September 30, 2014, the firm had $370 billion in assets under management, including assets managed by dual officers of Mellon Capital Management Corporation, The Bank of New York Mellon and The Dreyfus Corporation, and $4 billion in overlay strategies. Additional information about Mellon Capital is available at www.mcm.com. It is a wholly owned subsidiary of The Bank of New York Mellon, one of the world's largest asset managers.
About BNY Mellon Investment Management
BNY Mellon Investment Management is one of the world's leading investment management organizations and one of the top U.S. wealth managers, with $1.6 trillion in assets under management. It encompasses BNY Mellon's affiliated investment management firms, wealth management services and global distribution companies. More information can be found at www.bnymellon.com.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of Sept. 30, 2014, BNY Mellon had $28.3 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com, or follow us on Twitter @BNYMellon.
All information source BNY Mellon as of September 30, 2014. This press release is qualified for issuance in the UK, Europe and US and is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. Any views and opinions contained in this document are those of the investment manager, unless otherwise noted. This press release is issued by BNY Mellon Investment Management (US) and BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA) to members of the financial press and media and the information contained herein should not be construed as investment advice. Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute. Registered office of BNYMIM EMEA: BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorized and regulated by the Financial Conduct Authority. A BNY Mellon Company.
About the McKnight Foundation
The McKnight Foundation seeks to improve the quality of life for present and future generations through grantmaking, collaboration, and encouragement of strategic policy reform. Founded in 1953 and independently endowed by William and Maude McKnight, the Minnesota-based family foundation had assets of approximately $2 billion and granted about $86 million in 2014. In addition to McKnight's $200 million impact investing initiative and $100 million commitment to the Carbon Efficiency Strategy, McKnight is committed to measuring the the social and environmental alignment and impact of its full asset base. With program goals as its guide, the foundation also uses ISS Riskmetrics to vote proxies on actively managed accounts, and employs eight investment firms who are signatories for the UN Principles for Responsible Investment. Learn more at mcknight.org, and follow us on Facebook and Twitter.
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SOURCE BNY Mellon