At Janus Henderson, ESG integration is thoughtful, practical, research-based, and forward-looking.
Investment ESG
As investment professionals, our first responsibility is, and always has been, to our clients' interests and goals – growing and smartly managing their capital and fulfilling our fiduciary responsibilities. In every market, client demand is also increasing for us to invest with processes that incorporate financially material ESG considerations.
Where ESG meets risk
Financially material ESG factors are integral to how we think about risk. Among our clients, attitudes towards ESG and sustainability vary as much as risk profiles. We are respectful of this diversity of values and offer strategies and products accordingly.
We believe our ability to have the greatest impact as active managers is through active engagement with the firms in which we invest. Above and beyond the expectation that investment teams incorporate financially material ESG considerations in company engagement as appropriate to individual circumstances, teams are also asked to pro-actively engage on the following core sustainability themes:
- Climate Change
- Diversity & Inclusion
- Good Corporate Governance
We strive to manage an investment platform with the tools and flexibility to apply exclusions to meet the spectrum of requirements of our clients.
Climate change
Climate change is a global crisis, and addressing it requires the collaboration of many stakeholders, including government, business, academia and society as a whole. The Paris Agreement goal of reaching ‘net zero’ emissions by 2050 is hugely important and a positive step forward as a tangible target to address climate change. While we share concerns about climate risk and have the expertise to support climate commitments, we appreciate that different clients have different priorities. Even those that want to make climate-related commitments do not all have the same approach – some will opt for exclusions, some for scenario analysis and others will evaluate portfolio emissions versus the benchmark. As such, our current focus is on developing the tools and reporting that will help clients partner with us accordingly to realise their own climate goals.
In 2022, we recorded in excess of 1,000 company engagements where ESG topics formed a part of the interaction. Key ESG issues addressed included climate change strategy, diversity, equity & inclusion, and ESG reporting & disclosure.
In 2022, we recorded in excess of 1,000 company engagements where ESG topics formed a part of the interaction. Key ESG issues addressed included climate change strategy, diversity, equity & inclusion, and ESG reporting & disclosure.
Engagement
Our investment teams actively engage with the companies in which they invest for both insight and to drive better outcomes. The core of our Responsible Investment and Governance Team has been in existence since 2010, and provides centralised support to investment teams on voting, company engagement and ESG research.
Sustainable investing
Our Global Sustainable Equities Team has been established for more than 30 years, making it one of the pioneers of sustainable investing. Their approach focuses on companies that have a positive impact on the environment and society, employing a low-carbon approach. The team was a founding member of the Net Zero Carbon 10 initiative in 2020.
We believe that a sustainable and responsible investment approach should not compromise the potential for long-term performance. When assessing opportunities we ask the question ‘Is the world a better place because of this company?'
Hamish Chamberlayne, CFA, Portfolio Manager, Global Sustainable Equities
Sustainable investing
Our Global Sustainable Equities team has been established for more than 30 years, making it one of the pioneers of sustainable investing. Their approach focuses on companies that have a positive impact on the environment and society, employing a low-carbon approach. The team was a founding member of the Net Zero Carbon 10 initiative in 2020.
We believe that a sustainable and responsible investment approach should not compromise the potential for long-term performance. When assessing opportunities we ask the question ‘Is the world a better place because of this company?'
Hamish Chamberlayne, CFA, Portfolio Manager, Global Sustainable Equities
Expanding our offering
For clients who want to invest for a purpose beyond solely financial outcomes, we also offer ESG-focused strategies. These vary per region and as appropriate to client needs. We are committed to building upon this range to allow clients to access strategies from across asset classes.
Dedicated resources
Our current infrastructure includes a central Responsibility team of ESG-focused experts that partners closely with our investment teams. Under our Chief Responsibility Officer, Michelle Dunstan, we continue to strengthen the framework.
Our centralised Responsibility Team continues to operate along three pillars – ESG Strategy & Operations, Responsible Investment & Governance, and Client Solutions. The team’s mission is to promote ESG integration across Janus Henderson and serve as a resource for all investment teams for ESG matters.
Our approach is to research, engage, and educate – internally with our investment teams, with our portfolio companies, and with our clients.
Transparency of thinking
It is critical that our clients fully understand our approach and objectives. Sharing our investment thinking is an integral aspect of our commitment to maintaining an open dialogue with clients throughout the investment journey.
Transparency of thinking
It is critical that our clients fully understand our approach and objectives. Sharing our investment thinking is an integral aspect of our commitment to maintaining an open dialogue with clients throughout the investment journey.
Our approach is to research, engage, and educate – internally with our investment teams, with our portfolio companies, and with our clients.
Related insights
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Environmental, Social and Governance (ESG)Â or sustainable investing considers factors beyond traditional financial analysis. This may limit available investments and cause performance and exposures to differ from, and potentially be more concentrated in certain areas than, the broader market.