Identifies carbon removal investments as 2021
priority
TSX/NYSE/PSE: MFC SEHK: 945
BOSTON, Dec. 22, 2020 /PRNewswire/ - Hancock Natural
Resource Group (HNRG), a Manulife Investment Management Company,
recently released its inaugural climate disclosure report. The new
report highlights the risks and opportunities climate change
presents to timber and agriculture investments and how the firm is
assessing and managing climate-related impacts. This focused report
is structured following the recommendations of the Task Force on
Climate-related Financial Disclosures.
"We believe the biggest climate-related opportunity within
timber and agriculture is carbon removal," said William E. Peressini, CEO, HNRG. "Traditionally
we have managed timberland and farmland for our investors in order
to achieve market-rate returns, while also generating positive
environmental and social outcomes. We are now scaling up our
capabilities for "impact-first investments" - investments that
optimize and prioritize carbon sequestration - which may also
provide the best climate change mitigation option for clients."
As longtime managers of timber and agriculture, HNRG is aware of
the impact climate change has on biological assets and is in a
position to mitigate its effects.
The new report focuses on climate analysis and expands on what
is contained in the Manulife Investment Management sustainable and
responsible investing report for the timber and agriculture
business. It provides a much deeper understanding of its
approach to climate-related governance, strategy, risk management,
and metrics and targets for these asset classes.
- As a thematic investment manager, HNRG identifies areas where
social or environmental objectives can offer commercial investment
opportunities across timber and agricultural assets. Sustainably
managed forests and farms are carbon sinks and are two of the most
significant types of natural climate solutions for removing carbon
dioxide from the atmosphere. Leveraging this function is a
strategic priority for the firm and informs business planning
across multiple time horizons. HNRG incorporates the anticipated
impacts of climate-related risks and opportunities into its
business strategy in five key ways: Economic research,
Diversification, High-quality asset management, Value-added
services, and Impact-first investments.
- HNRG's risk management process for identifying and assessing
climate-related risks is grounded in its acquisition due diligence
and integrated investment and property management businesses. HNRG
conducts comprehensive environmental, biological and social reviews
of all targets and requires all reviews to highlight variance from
U.S. standards, even when the relevant local standards are less
stringent. In addition to investment due diligence, risk is managed
though portfolio diversification and property management by HNRG's
forest and farm management teams. HNRG also manages risk through
implementation of a uniform set of Stewardship Principles which are
developed, reviewed and adhered to on both a regional and global
level.
- The primary metric used by HNRG to measure the success of its
climate-related efforts is clients' risk-adjusted returns. HNRG
believes risk-adjusted return provides the most comprehensive
measure of success in managing client assets. HNRG also prioritizes
and incentivizes climate stewardship. Stewardship performance
comprises 20% of annual employee incentive plan compensation, and
is based on third-party sustainability certification audits, as
well as the integration of ESG considerations into acquisition due
diligence.
"The HNRG 2020 Climate Report showcases why it is a business
imperative to adapt to and address climate-related impacts," added
Brian J. Kernohan, Head of
Sustainability, Private Markets, Manulife Investment Management and
Hancock Natural Resource Group. "We look forward to continuing the
work necessary to obtain or develop information tailored to achieve
fuller results in future iterations of climate-related scenario
analysis on behalf of our clients to better understand the journey
ahead to a lower carbon and more sustainable world."
Please click here to download a copy of the 2020 Climate
Report.
About Hancock Natural Resource Group
Hancock Natural
Resource Group (HNRG) is part of Manulife Investment Management's
comprehensive Private Markets platform, which includes Private
Equity and Credit, Infrastructure, Real Estate, Timber and
Agriculture. HNRG's timber division manages approximately 5.4
million acres of timberland across the
United States and in Canada, New
Zealand, Australia, and
Chile. HNRG's agricultural
investment group oversees approximately 470,000 acres of prime
farmland in major agricultural regions of the United States and in Canada and Australia.
About Manulife Investment Management
Manulife
Investment Management is the global wealth and asset management
segment of Manulife Financial Corporation. We draw on more than a
century of financial stewardship and the full resources of our
parent company to serve individuals, institutions, and retirement
plan members worldwide. Headquartered in Toronto, our leading capabilities in public
and private markets are strengthened by an investment footprint
that spans 17 countries and territories. We complement these
capabilities by providing access to a network of unaffiliated asset
managers from around the world. We're committed to investing
responsibly across our businesses. We develop innovative global
frameworks for sustainable investing, collaboratively engage with
companies in our securities portfolios, and maintain a high
standard of stewardship where we own and operate assets, and we
believe in supporting financial well-being through our workplace
retirement plans. Today, plan sponsors around the world rely on our
retirement plan administration and investment expertise to
help their employees plan for, save for, and live a better
retirement.
As of September 30, 2020, Manulife
Investment Management had CAD$923
billion (US$692 billion) in
assets under management and administration. Not all offerings
are available in all jurisdictions. For additional information,
please visit manulifeim.com.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/manulife-investment-management-issues-inaugural-climate-report-for-timber-and-agriculture-aligned-with-recommendations-from-the-task-force-on-climate-related-financial-disclosures-301197813.html
SOURCE Manulife Investment Management