ESG in corporate credit: Change is active
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At Janus Henderson Investors, our focus is on growing and managing our clients’ capital and fulfilling our fiduciary responsibilities. In every market, client demand is increasing for us to invest with processes that incorporate environmental, social and governance (ESG) factors and sustainability.
ESG factors are integral to how we think about risk and are embedded within our fundamental analysis. As an active manager, by defining those companies that are genuinely in a process of an ESG transition, we aim to invest selectively and responsibly to help clients stay on the right side of change and capture sustainable returns.
In our view, this approach offers three benefits:
- The prospect of generating higher risk-adjusted returns from buying credit improvement that is not yet reflected in a security’s price.
- A greater positive impact on society and the environment by rewarding and encouraging positive ESG outcomes.
- Engaging with companies to influence positive change that supports more sustainable business models.
Here we detail our integrated ESG approach and framework, as well as our capabilities, in applying our core ESG principles to actively managing our credit strategies.
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These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.
Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
The information in this article does not qualify as an investment recommendation.
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