In 2021, Jupiter signed the Finance for Biodiversity (FfB) Pledge. This commits us to collaborate and share knowledge, engage with companies, assess impacts, set targets, and report publicly.
Jupiter has a long history of engaging with companies and playing a collaborative part in the financial ecosystem. Extending this approach to biodiversity presents a new set of demands, which we are committed to addressing. Setting targets has been identified as the most challenging element of the Pledge as it requires us to set and disclose targets based on the best available science to enhance positive impacts and reduce negative impacts on biodiversity. This, in a field with technical complexity, data availability issues, and the need to balance ambition with feasibility, will not be straightforward.
To help investors such as Jupiter, the FfB produced a Nature Target Setting Framework for Asset Managers and Asset Owners (“The Framework”) in June 2024. It encourages signatories to the FfB Pledge to set ‘Initiation Targets’ by December 31, 2024, and these have been disclosed in our 2024 Sustainability Report.
Jupiter’s Initiation Targets on nature
Governance & Strategy
Target: By the end of 2025, Jupiter will integrate and disclose board oversight of the management of nature-related dependencies, impacts, risks and opportunities within the existing governance structure for broader sustainability matters.
Jupiter has embedded sustainability considerations across the Group’s activities, with biodiversity now addressed through existing governance and management committees in line with their respective remits. In particular, the Investment Oversight Committee and the Senior Management Committee have both considered the FfB Pledge as part of their oversight responsibilities.
Impact and Dependency
Target: By the end of 2025, Jupiter will assess our portfolio for nature-related impacts and dependencies, risks and opportunities and disclose our insights for our in-scope investments (listed equities and corporate bonds).
We have measured which of our investments at an aggregated level are determined to have a high impact on nature, as well as those with the greatest dependencies on ecosystem services. We have continued engaging with our third-party data providers to explore their evolving data offerings to help us build upon our portfolio analysis using the latest available information, with the view to enhancing the granularity of the impact and dependency assessment that we have completed. We intend to continue reporting on nature-related topics at an aggregated level, rather than on an individual fund-by-fund basis. Details of our impact assessment is available in the “Sector materiality and reporting on progress” section below.
Training
Target: By the end of 2025, all relevant employees will have received training on the relationship between nature loss and investment.
Building on the mandatory ESG & Sustainability training launched in March 2024 for the Investments, Client Group, Legal, Product, Risk and Compliance teams, which covered topics such as TCFD reporting, greenwashing, climate and nature related issues, further sessions in 2025 have deepened this focus. In April 2025, the Sustainability and Stewardship teams participated in a biodiversity risk training delivered with a third-party provider, and in June 2025 the Board also undertook training on nature loss and investment.
A progress map
Sector materiality and reporting on progress
Despite the scarcity of technical data in managing biodiversity risk, some excellent tools exist, and we began using one in 2023 to measure our clients’ investments.
This is the Exploring Natural Capital Opportunities, Risks, and Exposure (ENCORE) tool. It shows how our portfolio holdings, at a sector level, might contribute to pressures that cause environmental degradation and nature loss and this will help to guide more targeted engagement and risk assessment. It should be noted that this assessment predominantly concerns Jupiter’s exposure to the impact drivers of nature-loss, but the same analysis has been completed for understanding our portfolio’s dependency on ecosystem services and this work has contributed to defining our approach on a forward-looking basis.
As a starting point, we mapped the 13 impact drivers within ENCORE to the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) drivers of biodiversity loss. Following this and guided by FfB recommendations to focus on the most material sectors, we analysed ENCORE’s assessment of ten priority sectors considered the most impactful on nature1. For each sector, we translated ENCORE’s materiality assessment (Very Low to Very High) into a scoring system to enable the aggregation of materiality assessments for the different production processes within each priority sector (Figure 1). This enabled us to see which of the 13 impact drivers are most impactful to the priority sectors and we have outlined the 4 most significant below.
Figure 1: Heatmap of Jupiter’s exposure to nature-related impacts across our assets, covering listed equities and corporate bonds
Source: Jupiter and ENCORE. AUM data as of October 2025.
Of the 4 impact drivers, we have opted to initially prioritise ‘Volumes of Water use’ and ‘Emissions of toxic soil and water pollutants’ for several reasons:
- Data availability
- Materiality and potential to achieve outcomes through engagement
- Avoid duplicating work occurring as part of Jupiter’s approach to The Net Zero Asset Managers initiative
- Our dependencies assessment highlighted the ecosystem services that the priority sectors were most dependent on were water related (water supply, water purification, water flow regulation, storm mitigation).
Given that Metals & Mining is the priority sector with the largest percentage in our assets across listed equities and corporate bonds, and that toxic soil and water pollutants are considered highly material to mining operations, we have identified this as an initial focus area for us.
Further, while the Food Product sector does not feature as one of the largest within our in-scope asset sector allocation, we intend to initially focus some effort into researching and engaging on water use as impact driver. This decision was particularly informed by the results of the dependencies assessment, highlighting that this sector is highly dependent on water supply and water purification as ecosystem services.
While our current focus areas help to guide our research and engagement, they do not limit our scope or preclude activity in other sectors. As our understanding of these complex topics evolves and we look ahead to potentially developing portfolio-level targets in the future, we will remain guided by materiality and open to addressing biodiversity issues wherever they are most relevant across our asset base.
Limitations of ENCORE
While ENCORE is recommended by the FfB and features within TNFD guidance, it is not without limitations. For example, ENCORE only considers direct impacts and dependencies. These include a company’s operations and suppliers. It does not provide insight into indirect impacts and dependencies across supply chains, which is especially relevant for certain sectors like consumer staples where there is a significant dependency on high impact sectors for their products, such as Agriculture and Paper & Forest Production for example. Additionally, the tool is not location specific, which is critical to understanding exposure risk.
Progress in other areas of The Pledge
Since signing the FfB Pledge in 2021, Jupiter has been working towards delivering five actions and examples of our recent activity is detailed below.
Commitment | Progress made to date |
|---|---|
Collaboration and knowledge sharing |
- Forest Carbon (2020) - FAIRR (2020) - Nature Action 100 (2023) - FABRIC (2025)
|
Engaging with companies |
|
Assessing impact |
|
Setting targets |
|
Reporting publicly |
|
Future Plans
Looking ahead, we will continue deepening our analysis of biodiversity impacts and dependencies as new datasets and tools emerge. We are exploring biodiversity footprinting methods and expanding engagement with investee companies in the identified sectors so that we can better understand nature-related risks and opportunities at a company level.
Our research and engagement will focus not only on priority sectors such as Metals & Mining and Food Products but also on broader issues such as plastics, palm oil, rubber, deforestation, and regulatory developments including the EU Deforestation Regulation. By maintaining an open and evolving approach, we aim to enhance transparency, promote responsible business practices that support long-term value creation for our clients and nature, and contribute to the protection and restoration of nature.
Footnotes
1FFBI_Guidance_on_nature_target_setting_FinalVersion(1).pdf. The list of ten priority sectors on P22 of the report covers 30% market cap of the MSCI ACWI and 70% of the biodiversity impact on the MSCI World Index. The FfB Guidance advise asset managers to select material sectors determined by the sectoral compositions of their portfolios.
The value of active minds: independent thinking
A key feature of Jupiter’s investment approach is that we eschew the adoption of a house view, instead preferring to allow our specialist fund managers to formulate their own opinions on their asset class. As a result, it should be noted that any views expressed – including on matters relating to environmental, social and governance considerations – are those of the author(s), and may differ from views held by other Jupiter investment professionals.
Important Information
This commentary is for informational purposes only and is not investment advice. Every effort is made to ensure the accuracy of the information provided but no assurance or warranties are given.
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