Hamish Chamberlayne, Portfolio Manager with Janus Henderson’s Global Sustainable and Responsible Investment (SRI) Team, details the ten sustainability themes – five environmental and five social – that guide the generation of the team's investment ideas.
The development of the world economy has reached a critical juncture. Over the last century it has depended on the availability of cheap resources to drive economic growth. However, the supply and use of many natural resources are approaching their limits. Climate change is the most subtle, yet arguably the most important, constraining factor. We believe the defining investment issue of our time will be transitioning to a low carbon and sustainable economy while maintaining the levels of productivity required to deliver the goods and services that growing and ageing populations require.
We invest in companies that are rising to the challenges posed by global megatrends and those seeking to transform the industries in which they operate. In building our portfolios we are also aiming to balance environmental and social sustainability. The ten themes that guide the generation of our investment ideas are split into five environmental and five social themes, and the concept of ‘sustainability’ runs throughout our investment process. We believe that well-managed companies that have a competitive advantage will generate sustainable cash flows and returns on invested capital.
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