What is ESG?

   

Environmental


Issues relating to the quality and functioning of the natural environment and natural systems, such as carbon emissions, environmental regulations, water stress and waste.

   

Social


Issues relating to the rights, wellbeing and interests of people and communities, such as labour management, health & safety and product safety.

   

Governance


Issues relating to the management and oversight of companies and other investee entities, such as board, ownership and pay.

     


     

Why invest sustainably?



ESG factors can impact corporate revenues, costs and operating cash flows. They can erode the value of assets and limit access to financing.


Companies that address these issues by adopting sustainable business practices can navigate the risks and take advantage of opportunities to create long-term value.


Investing sustainably can be achieved by avoiding companies with poor practices in this area, actively selecting leaders in each field, or focusing on specific themes such as renewable energy, clean water or low carbon emissions.


Positive ESG selection and exclusion does not need to cost investors returns.

   

Source: MSCI, Thomson Reuters Datastream, J.P. Morgan Asset Management. Both MSCI ACWI and MSCI ACWI ESG Leaders are in USD, rebased to 100 at the inception of the ESG Leaders index. MSCI ACWI ESG Leaders is a capitalisation-weighted price index that provides exposure to companies with high Environmental, Social and Governance (ESG) rankings relative to their sector peers and excludes companies with involvement in alcohol, gambling, tobacco, nuclear power and weapons. ESG rankings are given to companies based on the MSCI framework. The MSCI ESG Leaders index aims to target the sector weights of the underlying indices to limit systematic risk introduced by the ESG selection process.

Past performance is not a reliable indicator of current and future results.

Guide to the Markets - Europe.
Data as of 30 September 2018.




 

The asset classes displayed are those in which J.P. Morgan Asset Management currently provides sustainable investment solutions. As of 30 March 2018.

 

Our capabilities are aligned with client objectives



Through our engagement with clients and partner organisations, we continually expand our thinking on key ESG issues and best practices.


We have been a signatory to the United Nations-supported Principles for Responsible Investment initiative since 2007 and are committed to incorporating ESG factors into our investment practices, where material and relevant.


We offer solutions across the spectrum of sustainable investing, to meet diverse client needs.


     

Sustainable Investment Leadership Team (SILT)




Our Sustainable Investment Leadership Team (SILT), made up of more than 40 senior members across the organisation, is focused broadly on two priorities:


  • Externally, our focus is on engaging with our clients around sustainable investing, including active dialogue on products or considerations implementing ESG approaches or assessing data
  • Internally, we’re dedicated to building up our investment capabilities.


Related documents


Sustainable Investing Statement

An overview of our ESG commitment and capabilities ►

Environmental, Social & Governance Report 2018

Our approach to ESG management ►

ESG in Emerging Markets

Our approach to ESG in Emerging Markets ►







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