Sustainability in Action

Actions lead louder than words

100 %

ESG Integration

Every Intech strategy integrates ESG considerations

As of 2022-12-31

+ 60 %

Reduction in portfolio carbon intensity

Weighted average carbon intensity (WACI) scope 1+2 vs. year-end 2019

As of 2022-12-31

2012

PRI Signatory

Over 10-year commitment to Principles for Responsible Investment

As of 2022-12-31

Intech believes sustainability is about positively influencing everything we do, from investments we make as fiduciaries to our corporate citizenship. Today, we systematically integrate environmental, social, and governance (ESG) considerations into 100% of our strategies. But Intech’s commitment to sustainability extends well beyond ESG investments.

We leverage our whole business to advance global sustainable development. While Intech has been a signatory of the Principles for Responsible Investment since 2012, we also embrace a broader commitment to UN Sustainable Development Goals (SDGs), and use this framework as a blueprint for our actions. So, our approach to sustainability involves every area of influence at Intech: ESG Investments, Active Stewardship, Corporate Responsibility, and Global Cooperation.

ESG Investments

Integrate ESG factors into our investment process without compromising risk or return objectives.

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Active Stewardship

Encourage sustainability practices from companies in which we invest.

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Corporate Responsibility

Support diversity, equity and inclusion, and our communities’ well-being.

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Global Cooperation

Advance industry and global cooperation to promote sustainable development.

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ESG Investments without Compromises

Integrating environmental, social, and governance (ESG) factors into our investment process without compromising risk or return objectives is a pillar of our holistic sustainability approach. Every Intech strategy incorporates ESG factors for risk management purposes, regardless of whether a strategy has an explicit sustainable mandate.

Why Integrate? Our clients expect us to understand the trade-off between generating returns, and the sources of risk associated with those returns. We’ve found that ESG characteristics can introduce material systematic risks to portfolios, so we integrated ESG exposures into our investment process and developed proprietary ESG factors and constraints that help us manage the risks induced by ESG-related issues.
What Do We Integrate? We evaluate ESG risk across five dimensions: environmental, social, governance, carbon, and in aggregate. These factors are part of our risk estimation model, which includes other factor-specific risks, such as momentum, size, beta, etc. Combined with country, sector, and stock-specific risks, our optimization process establishes portfolio-level risk exposures and adapts them to balance their contributions to return, diversification, and risk.
How Do We Integrate? Access to high-quality data with a long time-series is essential for any quant manager. We fulfill this prerequisite for ESG data by combining widely-accepted, third-party ESG stock ratings with proprietary statistical analysis that reveals related attributes that are broad, stable, and historically persistent. This allows us to back-test results beyond the availability of third-party ESG data and integrate them like other portfolio risk constraints.

Active Stewardship

Intech is an advocate for sound corporate governance and sustainable business models that help drive the long-term economic interests of our clients. We do this through corporate engagement and proxy voting on our clients’ behalf. To amplify our stewardship impact as a boutique investment manager, Intech collaborates with organizations to pool our advocacy with like-minded investors globally and provide greater potential impact than we might achieve on our own.

Engagement

ISS ESG Collaborative Engagement strengthens our voice on human rights, labor rights, environmental risks and corruption issues by jointly engaging companies alongside other investors. ISS facilitates dialogue with companies who fail to meet responsible business conduct standards, face credible allegations, or lack transparency in their ESG risk mitigation efforts. They also facilitate the management process with real-time reporting that implements global stewardship codes and reporting frameworks, including the PRI.

We also amplify our influence on environmental issues as a signatory of Climate Action 100+. Members of this investor-led climate change initiative engage with corporations strategically critical to the net-zero emissions transition: improve governance framework on climate change, act to cut emissions across the value chain, and strengthen climate-related financial disclosures.

Proxy Voting

Voting on our clients’ behalf is an essential aspect of our fiduciary responsibility and one of our core stewardship responsibilities. Thus, we vote to achieve outcomes aligned with our clients’ long-term economic interests.

For clients who delegate proxy-voting authority to us, Intech uses ISS Sustainability Proxy Voting Guidelines unless otherwise directed. These guidelines seek to support global governing bodies promoting sustainable business practices that advocate for stewardship of the environment, fair labor practices, non-discrimination, and the protection of human rights.

Corporate Responsibility

Intech’s role in supporting global sustainable development extends beyond the investment cycle. One of the core principles underlying our approach to sustainable development is to integrate sustainable business practices and values into our company. We believe that embedded sustainability efforts have a positive impact on business performance.

Starts with Our People

Intech puts our people first by fostering a values-driven culture we’ve shaped and nurtured for over 30 years. We also ensure our professional development activities align with our sustainability objectives by promoting professional and personal environmental awareness, embracing a diverse, equitable, and inclusive workplace, advancing professional development, and encouraging volunteerism.

Manifests in Our Practices

Intech seeks and promotes internal business practices that advance sustainable development, from our physical offices to our everyday work processes. Our company headquarters is LEED® Gold certified, a recognized symbol of sustainability achievement and leadership in the construction industry. And, the WELL Building Institute recognizes our office with a WELL Health-Safety certification rating. We also conserve resources and reduce pollution across our operations, including the adoption of more web-based meetings, defaulting to paperless presentations and reports, requiring suppliers to detail their sustainability efforts, and promoting our corporate recycling program.

Extends to Our Communities

Intech Impact is an employee-driven effort to strengthen our local communities and advance UN Sustainable Development Goals (SDGs). We’ve made multi-year commitments to several innovative organizations impacting our communities, seeking to provide people with the financial resources, educational opportunities, and skills they need to improve their lives. From volunteer service days and donation drives to awareness campaigns and sponsorships, Intech provides various options for employees to get involved and give back to the community.

OrganizationDescriptionUN SDG Goal

Feeding South Florida’s mission is to end hunger in South Florida by providing immediate access to nutritious food, leading hunger and poverty advocacy efforts and transforming lives through innovative programming and education.

Florida Food Banks is a community-based organization of volunteers who collect and transport surplus food to non-profit distribution centers throughout Florida.

Rise is a social support center in central New Jersey, helping people to recover from setbacks and achieve their full potential by offering services and facilitating community partnerships.

Ocean Conservancy seeks to protect the ocean from today’s global challenges, creating science-based solutions for a healthy ocean and the wildlife and communities that depend on it.

Johnny Mac Soldiers Fund honors U.S. military service and sacrifice by providing scholarships to veterans and military family members, especially to children of American’s fallen or disabled.

The Big Heart Brigade supports First Responders and our U.S. military in our communities through “Big-Hearted” individuals, families, companies, and faith-based organizations.

The mission of Camp Boggy Creek is to foster a spirit of joy by creating a free, safe, and medically-sound camp environment that enriches the lives of children with serious illnesses and their families.

The mission of Friends of Foster Children is to foster happy childhoods by enriching lives impacted by foster care. They provide services, support and education to overcome the effects of child abuse and neglect.

The purpose of the Mercedes-Benz Corporate Run is to promote running and walking as a means to a fit, healthy lifestyle for people from all walks of corporate life.

The mission of the Urban League of Palm Beach County is to assist African Americans and other minorities in the achievement of social and economic equality.

The mission of Quantum House is to provide a caring and supportive home that lessens the burden for families whose children are receiving treatment in Palm Beach County for a serious medical condition.

Global Cooperation

Cooperating with organizations to advance sustainable development is a pillar of Intech’s holistic sustainability approach. Partnering within the asset management community and across industries is critical because no single organization can independently solve any of these problems. We believe collaboration may be the most important factor in achieving the UN Sustainable Development Goals (SDGs).

Intech identifies opportunities for collaboration to target SDGs, scale our efforts, and share responsibilities. The most essential of these memberships is the Principles for Responsible Investing (PRI). Intech signed the internationally-recognized Principles in 2012, and we actively promote acceptance and implementation of the Principles in the industry.

In supporting the other sustainability organizations, Intech not only seeks to follow each organization’s vision and standards, but we also help shape industry best practices aligned with the PRI: ESG integration, corporate engagement, investor disclosures and policy advocacy.

TCFD The Task Force on Climate-Related Financial Disclosures recommends climate-related disclosures that enable stakeholders to understand better the concentrations of carbon-related assets in the financial sector and the financial system’s exposures to climate-related risks.
ISS ESG ISS ESG is a leading provider of corporate governance and responsible investment solutions for institutional investors. ISS ESG solutions integrate ESG policies and practices while amplifying investor influence on ESG issues by pooling corporate engagement.
Net Zero Asset Managers Initiative Net Zero Asset Managers Initiative is an international group of asset managers that supports net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius, and supports investing aligned with net zero emissions by 2050 or sooner.
PRI The PRI is the world’s leading proponent of responsible investment. It works to understand the investment implications of ESG factors and support its network of investor signatories in incorporating these factors. Intech has been a signatory since 2012.

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