Investment approach
Jupiter takes a materiality approach to integrating Environmental, Social and Governance (ESG) into our investment processes. ESG integration enables us to develop a view of the material risks and opportunities a company or asset is exposed to; many of which may evolve dynamically and seeks to understand how these may develop through time. These insights are then incorporated into valuation and investment decisions to the extent that investment restrictions permit.
We have identified material sustainability issues that underpin both Jupiter’s corporate and investment strategy and approach.Investment teams consider these issues* in their portfolio construction, asset allocation and investment approach.
Climate
Climate change represents a material systemic risk for business and for investments. We use our influence as an investor through stewardship and active ownership to encourage companies to identify, manage, and mitigate climate change risks or opportunities. Jupiter Fund Management plc (JFM plc) is a signatory to the Net Zero Asset Managers Initiative through the Institutional Investors Group on Climate Change (IIGCC).
Biodiversity
Biodiversity underpins healthy societies, resilient economies, and the ability of companies to operate. We signed the Finance for Biodiversity Pledge in 2021 which commits us to collaborating, engaging, and assessing our biodiversity impact.
Human rights
JFM plc is a signatory to the United Nations Global Compact (UNGC) and is committed to upholding UNGC’s Ten Principles in our business operations and supply chains.
At the investment level, the Responsible Investment Forum (‘RIF’) at Jupiter has been established to review and fully investigate UNGC matters related to target portfolio companies as well as existing investments. The RIF is authorised by the Investment Oversight Committee (‘IOC’) and forms part of the broader sustainability governance at Jupiter.
Human capital
Good human capital management supports both value creation and business resilience, and we believe that investing in human capital correlates with longer term business success. As such, the Jupiter group actively look for ways to bring diverse perspectives into decision-making and we support people with development opportunities and experiences.
Corporate governance
Corporate governance is the process by which companies are directed and controlled. Jupiter’s governance framework can be found in our Annual Report and Accounts.
*where the investment team deems the issue material to the investment case, or the products, services or operations of the investee company, has a material impact related to these themes
Please see our Resources & Reports section for more information.
Active Ownership & Stewardship
Our Responsible Investment Policy sets out our approach to stewardship and active ownership.
We aim to invest in companies where we support their strategies, management teams and business models. As active owners, our investment teams focus on helping our clients achieve their long-term investment objective through thoughtful portfolio construction. Where ESG opportunities arise, we actively engage and exercise stewardship to monitor and support progress, whilst being cognisant of our responsibilities to escalate concerns that may arise.
As stewards of our client’s capital, we have a duty to manage assets in a responsible manner with reference to the integration of sustainability risks, making informed voting decisions and conducting effective engagement. Stewardship is a central pillar of our active management proposition and is centred on our ability to utilise our influence and rights to help companies maximise long-term sustained value creation to the benefit of our clients.
This is a dynamic area of investment linked to the heart of Jupiter’s purpose It is a responsibility where demands have intensified as we contend with real-word complexities.
The exercise of rights and responsibilities through informed voting is fundamental to Jupiter’s active management and active ownership approach. Proxy voting is a representation of our clients’ interests and underpins both accountability and the alignment of interests between asset owners and beneficiaries. Voting serves as an intersection between companies and investors. Consequently, we have adopted an investment-led approach where voting plays an important role in effective stewardship, the promotion of good governance and our efforts to maximise investor value
For more details of our voting activity, see Principle 12 of our annual Stewardship Report.
Sustainable Investment Products
We are supportive of the accelerating shift to a sustainable global economy and offer a range of dedicated funds investing in the transition to a sustainable global economy and environmental solutions. Please refer to our Spotlight Funds page for further information.