Jupiter Green Investment Trust | ESG

The Jupiter Green Investment Trust (JGC) seeks capital growth by investing in a diversified portfolio of companies that are solving the world’s environmental challenges.  

The company takes a thematic approach, investing in companies where the core business is focused on developing and implementing solutions to environmental challenges across seven themes: Circular Economy, Clean Energy, Water, Mobility, Energy Efficiency, Sustainable Agriculture, Nutrition & Health and Environmental Services.

ESG is intrinsic to JGC’s investment objective and philosophy.  We believe that sustainability will play an increasingly pivotal role in global development which will generate multi-decade, structural growth opportunities for companies focussed on providing environmental solutions. JGC seeks to offer clients focused and specialist exposure to this powerful trend.

There are three complimentary layers to JGC’s longstanding approach to ESG, each playing a role in delivering on the Company’s aim to provide capital growth alongside beneficial outcomes for the planet and society.

Thematic focus

Established in 1988, the focus of the team responsible for managing JGC has remained unchanged: to identify long term investment opportunities in companies that provide solutions to environmental challenges.

The company invests in a defined universe of 1,200 sustainable companies which represents 6% of the market capitalisation of global listed equities. The company is in the process of formalising its categorisation as an Article 9 fund under the European Sustainable Finance Disclosure Regulation (SFDR).  

To put this into practice, JGC applies investment criteria to company’s products and services. On a case-by-case basis, we consider the impact of a company’s products, services and operations across its value chain in the context of climate change mitigation, transition to a circular economy, waste prevention and recycling, protection of healthy ecosystems, pollution prevention control and sustainable use and protection of water and marine resources.

ESG integration

Having established the thematic universe of companies by focusing on what it is that companies provide in their markets, an assessment of how they go about this is where materially significant environmental, social and governance (ESG) factors are considered and integrated into the investment case.

Our longstanding experience demonstrates that although companies within the environmental solution investment universe often present compelling positive impact opportunities, the quality of its leadership teams on all matters including wider ESG risk management is fundamentally important in determining whether this opportunity is achievable. Company management of material ESG risk factors, as directed by frameworks such as the SASB materiality map, is considered a marker of overall leadership quality.

All investments are monitored pre- and post-investment via ESG data provider RepRisk. This includes continued compliance with the ten principles of the UN Global Compact, which cover areas of human rights, labour, environment, and anti-corruption.

Engagement

Engagement not only monitors continued environmental solutions status but seeks to enhance it.  The investment team have in-depth expertise in this space and share this advice with investee companies. For example, the team review and provide feedback on company sustainability reporting, and engage collectively with other asset managers on environmental and social matters ranging from climate and biodiversity risk management to adopting appropriate metrics in sustainability target setting

Jupiter has a clear purpose and set of principles, underpinned by our belief in the value of active minds and the importance of keeping our clients at the heart of everything we do.

We are a specialist, high-conviction active asset manager. We target investment outperformance after fees for clients. We hold the companies in which we invest to account, not only to drive financial results but also for societal benefits and a sustainable future. We believe that a combination of experience and creativity, as well as a commitment to keep listening and learning across all of our business, enables us to make a positive difference in the world and deliver for our clients. We call this advantage “the value of active minds”.

Stewardship is at the heart of our active management approach. Our value to society lies in being responsible stewards of our clients’ assets, increasing the value of their savings and carefully deploying capital. We understand that active fund management is not only about financial results, but also about successfully identifying sustainable businesses that create value for both society and shareholders. We believe these companies have better long-term growth prospects, ultimately benefiting our clients.

Our fund manager-led approach to stewardship differs by strategy and asset class and is always centred on improving client outcomes. As long-term investors, our fund managers create sustained and effective relationships with company management, and this enables more meaningful and relevant engagement.

Collective engagement  

Jupiter collaborates with other institutions, policy bodies and third parties to address long-term sustainability issues and systemic risks. Our partner organisations include:

Investor Forum

IIGCC

Climate Action 100

Net Zero Asset Management Initiative

FAIRR Initiative

Good Work Coalition

Workforce Disclosure Initiative

The 30% Club (UK Chapter)

Green Bond Principles

Healthy Markets Coalition

All Jupiter Trusts comply with the AIC Corporate Governance Code, and the Board provides expertise and oversight, setting the stage for the positive impact delivered by the investment team both through their decision to allocate capital to environmental solutions companies and to take an active role in engagement.

The Board consists of four experienced individuals in the field of sustainable finance.  As part of its annual evaluation process and in accordance with good corporate governance practice, the board considers the length of tenure of all directors. As an expression of transparency, the Company acknowledges the tenure of the board related to UK best practice; however, it has proactively managed this as part of its governance process. In accordance with UK best practice, the Company has a clear succession plan in place with a search for suitable replacement directors underway. The target is for succession to take place around the 2022 AGM.

The Board’s diversity in terms of gender and ethnicity are 25%. The directors meet physically at least twice each year and maintain an open and constructive relationship with the investment adviser, with meetings taking place four times per annum with monthly updates and additional meetings as circumstances require.

Shareholder responsiveness is recognised as essential; accordingly the notice period for the Investment Management Agreement with the adviser is one year, the NEDs do not receive remuneration beyond basic fees, and a continuation vote is offered to investors every three years.