Responsible Investment is the term Janus Henderson uses to cover its work on environmental, social and corporate governance (ESG) issues in the companies in which we invest on clients' behalf, across all our funds.
Responsible Investment Policy
Janus Henderson's Responsible Investment Policy sets out our approach to ESG issues, including proxy voting policy, for our Investment Management business, which includes all our equities and fixed income teams.
We believe that in order to achieve long-term success, companies need not only to conceive and execute appropriate business strategies, but also to maintain high standards of corporate governance and corporate responsibility. We therefore expect companies to operate according to recognised national and international standards in these areas.
The UK Stewardship Code
The UK Stewardship Code was published in July 2010. The Code sets out good practice for shareholders on engagement with investee companies, and is overseen by the Financial Reporting Council (FRC). Our statement of compliance with the Code can be found below.
Japan's Stewardship Code
Japans's Stewardship Code was published in February 2014. The Code sets out best practice principles for responsible institutional investors. It was produced by a Council of Experts appointed by the Financial Services Agency (FSA). Our statement of compliance with the Code can be found below.
Related Janus Henderson websites:
Sustainable & Responsible Investment Funds
For information about Janus Henderson's Sustainable & Responsible Investment Funds, please see your relevant website.
Corporate responsibility at Janus Henderson
To find out more about Janus Henderson’s own approach to CSR please see the corporate responsibility pages.
We implement our Responsible Investment Policy through active management, integration of ESG factors into investment decision making, voting and company engagement.
Responsible Investment Committee
Janus Henderson has a Responsible Investment Committee which oversees and reviews the implementation of the Responsible Investment Policy and any other related corporate governance and responsible investment matters within Janus Henderson that may arise. The Committee is chaired by our Head of Equities, and comprises representatives from all our fund management teams as well as the Governance and Responsible Investment team.
The Committee is responsible for evaluating the effectiveness of our corporate governance and corporate responsibility work in influencing companies and generating analysis of value to our investment decision-making.
Governance and Responsible Investment Team
The Governance and Responsible Investment team (GRI) works closely with our investment teams to assist in the implementation of our policy. The team provides support to fund managers on research and engagement and leads on our participation in various external ESG initiatives. The GRI team is also responsible for overseeing our proxy voting process on behalf of fund managers.
Fund managers are ultimately responsible for the integration of ESG issues into investment decision making and engagement as part of their investment processes. To help facilitate this we subscribe to a wide range of specialist external ESG research to complement in-house research and engagement. This research is made directly available to all investment teams, as well as being used by the GRI team to screen for ESG issues of concern. In addition, fund managers receive detailed ESG investment risk reports which are discussed at regular risk review meetings.
We take an active approach to communicating our views to companies and seeking improvements where we believe there are shortcomings in performance, or a company has failed to apply appropriate standards, or to provide adequate disclosure. We will continue our dialogue with the company over an extended period if necessary. Escalation of our engagement activities will depend upon the company's individual circumstances. Actions may include communications through the company's brokers, direct engagement with the chairman or non-executive directors or joint intervention with other shareholders, and where appropriate, voting against board proposals.
We believe that voting at general meetings is an important aspect of corporate stewardship and a means of signalling shareholder views on board policy, practices and performance. We exercise voting rights on behalf of clients at all UK and global meetings. Where voting impediments are in place, such as share blocking, we vote on a case-by-case basis.
The Janus Henderson view represents the house position. The views expressed are the opinion of Janus Henderson Investors and reflects the way Janus Henderson acted based on available information. It should not be relied upon for any other purpose.
UN Principles for Responsible Investment (PRI)
Janus Henderson is a founding signatory to the United Nations Principles for Responsible Investment. The Principles, developed under the auspices of the UN Secretary-General, are a voluntary and aspirational framework for incorporating environmental, social and corporate governance (ESG) issues into mainstream investment decision-making and ownership practices.
As part of our commitment to responsible investment, Janus Henderson is involved in a wide range of ESG related initiatives as a member, supporter or in an advisory capacity. These initiatives include:
Asian Corporate Governance Association (ACGA)
The Asian Corporate Governance Association (ACGA) is an independent, non-profit membership organisation dedicated to working with investors, companies and regulators in the implementation of effective corporate governance practices throughout Asia. ACGA was founded in 1999 from a belief that corporate governance is fundamental to the long-term development of Asian economies and capital markets.
Janus Henderson is a member of the ACGA.www.acga-asia.org
Business Benchmark on Farm Animal Welfare (BBFAW)
There is growing investor interest in the business risks and opportunities associated with farm animal welfare. However, investors’ ability to make robust comparisons between companies or to use farm animal welfare-related performance in their investment decisions is hampered by a lack of robust reporting by companies and a general absence of tools that enable investors to compare different companies on a consistent basis. The Business Benchmark on Farm Animal Welfare is designed to address these challenges.
Janus Henderson is a signatory to the BBFAW Global Investor Statement on Farm Animal Welfare.www.bbfaw.com
Carbon Disclosure Project (CDP)
CDP works to encourage companies to disclose their impacts on the environment and natural resources and take action to reduce them. It now holds the largest collection globally of primary climate change, water and forest-risk information.
Janus Henderson is a participant in Carbon Action; an investor-led initiative seeking acceleration on carbon reduction and energy efficient activities from the world’s highest emitting companies.www.cdp.net
Climate Action 100+ (CA100+)
Climate Action 100+ is a five-year initiative led by investors to engage systemically important greenhouse gas emitters and other companies across the global economy that have significant opportunities to drive the clean energy transition and help achieve the goals of the Paris Agreement. Investors are calling on companies to improve governance on climate change, curb emissions and strengthen climate-related financial disclosures.
Janus Henderson is a signatory of Climate Action 100+.www.climateaction100.org
European Sustainable Investment Forum (EUROSIF)
Eurosif is a pan-European network and think-tank whose mission is to Develop Sustainability through European Financial Markets.http://www.eurosif.org
Institutional Investors Group on Climate Change (IIGCC)
The Institutional Investors Group on Climate Change (IIGCC) is a forum for collaboration between pension funds and other institutional investors on issues related to climate change. IIGCC seeks to promote better understanding of the implications of climate change amongst institutional investors and to encourage companies and markets in which IIGCC members invest to address any material risks and opportunities to their businesses associated with climate change and a shift to a lower carbon economy.
Janus Henderson is a founder member.http://www.iigcc.org/
Pensions and Lifetime Savings Association (PLSA)
The PLSA is the representative organisation for workplace pensions in the UK. It has membership in excess of 1300, between them providing pensions to more than 10 million working people with combined assets in excess of £800 bn.
A Janus Henderson employee sits on the Stewardship Advisory Group.http://www.plsa.co.uk/
Taskforce on Climate-related Financial Disclosures (TCFD)
The FSB Task Force on Climate-related Financial Disclosures (TCFD) will develop voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders. The Task Force will consider the physical, liability and transition risks associated with climate change and what constitutes effective financial disclosures across industries.
The work and recommendations of the Task Force will help companies understand what financial markets want from disclosure in order to measure and respond to climate change risks, and encourage firms to align their disclosures with investors’ needs.
Janus Henderson is a TCFD Supporter.https://www.fsb-tcfd.org/
UN Principles for Responsible Investment (PRI)
Founded in early 2005 by UNEP FI and the UN Global Compact, the PRI is a set of voluntary and aspirational principles giving a framework for the integration of ESG issues into mainstream investment decision making and ownership practices. The PRI has become the pre-eminent reference point for evaluating the commitment of institutional investors to responsible investment.
Janus Henderson is a founding signatory, joining up in April 2006.http://www.unpri.org/
UK Sustainable Investment and Finance Association (UKSIF)
UKSIF is the UK's membership network for sustainable and responsible financial services. UKSIF promotes responsible investment and other forms of finance that support sustainable economic development, enhance quality of life and safeguard the environment. It also seeks to ensure that individual and institutional investors can reflect their values in their investments.
Janus Henderson is a member of UKSIF.http://www.uksif.org