How we think about Environmental, Social and Governance (ESG)
Being a global asset management organisation comes with important responsibilities. As an active manager, this means that integrating Environmental, Social and Governance (ESG) factors into our investment decision-making and ownership practices is fundamental to delivering the results clients seek. An issue as pressing as ESG investing demands active and ongoing engagement and we are committed to maintaining a focus on ESG as a foundation for long-term returns. We also recognise that the ESG investment world is evolving and we seek to partner with clients and act as a guide on that journey.
Our approach in summary
- At a corporate level, ESG principles influence our people, our culture and our choices, helping to make us a better company.
- At an investment level, we have integrated ESG factors into our analysis and processes as appropriate, helping us identify opportunities and risks, and influence positive change as we engage with companies.
- Recognising that there is a lack of consistency in ESG implementation and articulation across the industry, we seek to be clear in our communication as well as providing insight and education for our clients.
“ESG investing and considerations are evolving quickly; so is our thinking. Our heritage and expertise allow us to partner with clients on this journey and contribute to a sustainable future for generations to come.”
“ESG investing and considerations are evolving quickly; so is our thinking. Our heritage and expertise allow us to partner with clients on this journey and contribute to a sustainable future for generations to come.”
Corporate ESG
We value and engage with our employees, communities and the wider world.
Both the ethical and practical values of ESG have always been at the heart of what Janus Henderson stands for. The biggest change we have seen, and welcome, is the increased appetite of clients, and the industry in general, to talk about ESG. The drive to assess more than just financial returns reflects a broad, cultural change within the industry, and perhaps a generational shift within society. We welcome this change and support the increased demand for corporate commitment to ESG standards.
Our corporate commitment extends to our people, the environment, climate risk, the communities we are part of and our governance structure.
“As an active asset manager, it has always been our responsibility to identify and quantify risk. ESG factors play an important role in our decision making and influence positive change when engaging with companies.”
“As an active asset manager, it has always been our responsibility to identify and quantify risk. ESG factors play an important role in our decision making and influence positive change when engaging with companies.”
Investment ESG
Representing our clients, defending their interests and sharing our thinking.
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 ESG and sustainability.
Where ESG meets risk
ESG factors are integral to how we think about risk. In the broadest sense, this ranges from an opening up of traditional governance issues, right through to the biggest existential questions. 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 strive to manage an investment platform with the tools and flexibility to apply exclusions to meet the spectrum of requirements of our clients. We believe our ability to have the greatest impact as active managers is through active engagement with the firms in which we invest.
“As part of our Knowledge Shared approach, we are committed to sharing our insight and analysis on the ESG themes impacting our world and our clients' portfolios.”
“As part of our Knowledge Shared approach, we are committed to sharing our insight and analysis on the ESG themes impacting our world and our clients' portfolios.”
Additional Resources
Access the latest ESG thinking from our experts and find further detail on our approach in the Document and Resources Library.
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Environmental, Social and Governance (ESG) 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.