Investment & Stewardship

Jupiter takes a materiality approach to integrating ESG into our investment processes. ESG integration enables us to develop a view of the material risks and opportunities a company or asset is exposed to. Many ESG factors will evolve dynamically and our investment managers seek to understand how these may develop through time. These insights are then incorporated into valuation and investment decisions to the extent that investment restrictions permit.

We take a pragmatic approach towards the integration of ESG drivers within our investment decisions. ESG factors are complex, often overlap and can be interdependent. Furthermore, good quality data may not be available or may be inherently subjective. In order to integrate these drivers into investment decisions, we have an experienced ESG Research & Integration team that work alongside our fund managers.

We have identified material sustainability issues that underpin both Jupiter’s corporate and investment strategy approach. Consideration of material ESG issues is integrated into investment analysis and decision making. The form this integration takes is tailored according to each team’s asset class, management style, investment process, and the information available to us.

Climate change represents a material systemic risk for business and for investments. We use our influence as an investor through stewardship and active ownership to encourage companies to identify, manage and mitigate climate change risks, navigate the transition to a lower carbon economy, and capture opportunities that support long-term value creation. Jupiter Fund Management plc is a signatory to the Net Zero Asset Managers initiative through the Institutional Investors Group on Climate Change (IIGCC).

Biodiversity underpins healthy societies, resilient economies, and companies’ ability to operate. To learn more about biodiversity and its relevance to the investors, click here. More details on Jupiter's approach to biodiversity and our commitment to the Finance for Biodiversity Pledge can be found by clicking here.

Human rights are basic rights or freedoms to which all human beings are inherently entitled. We recognise the importance of companies respecting and protecting human rights. Companies with poor management of human rights can face a range of issues including fines, workforce issues and supply chain challenges, which may affect their licence to operate. We monitor potential human rights issues affecting our investee companies using third-party data providers.

The Responsible Investment Forum (‘RIF’) at Jupiter has been established to review and fully investigate UNGC matters related to target portfolio companies as well as existing investments and methodologies. The RIF is authorised by the Investment Oversight Committee (‘IOC’) and forms part of the broader sustainability governance at Jupiter.

Good human capital management supports both value creation and business resilience, and we believe that investing in human capital correlates with longer-term business success. Human capital management can both upskill and educate a workforce, increase productivity and retain and motivate employees which has a direct impact both on an individual company and on wider society. As active owners, Jupiter seeks to invest in companies that value and invest in their human capital but recognise that good practice will differ depending on a company’s size and business profile.

Corporate governance is the process by which companies are directed and controlled. Boards of directors are responsible for the governance of companies whilst investors are responsible for determining whether the board and management teams are appropriately skilled and resourced to run the company. 

As active owners, we assess company governance on a range of issues. Good corporate governance is key to the success of a company’s strategy and culture. Governance also intersects with sustainability issues and we seek to understand how a company’s governance is connected to the oversight, transparency and effectiveness of its sustainability goals. As active owners, we recognise that good practice will differ depending on a company’s jurisdiction, size, and ownership structure.