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Janus Henderson Global Sustainable Equity Fund (OEIC/Unit Trust)

Logo for Janus Henderson Global Sustainable Equity Fund
SRI Style: Sustainability Themed
Fund Type: OEIC/Unit Trust
Region: Global
Asset Type: Equity
Launch Date: 01/08/1991

SRI / Ethical Overview

The Global Sustainable Equities strategy (‘the strategy’) seeks to invest in businesses that are strategically aligned with the powerful environmental and social trends changing the shape of the global economy. These businesses should exhibit sustainable revenue growth by virtue of having products or services that enable positive environmental or social change, and thereby have an impact on the development of a sustainable global economy. It is a low carbon strategy.

The investment team responsible for the strategy employs a fundamental bottom-up approach to stock selection with a style tilt towards growth and quality. The strategy has an integrated approach to Sustainable investing, combining positive and negative investment criteria as well as integrating ESG factors into the bottom-up, fundamental company analysis.

 

SRI Policies (Primary strategy in bold)

  • Environmental policy Funds that have policies which relate to environmental issues. These will typically set out the fund's stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary. See fund information for further information.
  • Ethical policies Find funds that have policies that set out their position on ethical or 'personal values' based issues. Strategies vary. See fund information for further detail.
  • Sustainability policy Funds that have policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See fund information for further information.
  • Social policy Find funds that have policies which set out their approach to social issues (e.g. human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such as the UN Global Compact). Funds with social policies typically avoid companies with low standards or work to encourage higher standards. See fund information for detail.
  • Governance policy Find fund options that have policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary. See fund literature for further information.
  • Animal welfare policy Find funds with policies that require specific animal welfare standards to be met. These may reference well-known welfare standards (3Rs - Replace, Reduce, Refine) or certification schemes. Strategies vary. See fund information for further detail.
  • Animal testing exclusion policy Find funds that avoid companies that are involved in testing their products on animals. Precise application may vary. See fund literature for further information.
  • Tobacco production avoided Find fund options that exclude manufacturers of tobacco (or related) products. Strategies vary and funds may or may not invest in retailers of such products (e.g. supermarkets or hotels). See fund information for further detail.
  • Armaments manufacturers avoided Find funds that avoid companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non-strategic military products. See fund literature for fund specific details.
  • Limits exposure to carbon intensive industries Funds that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change. Funds vary - some funds may be 'underweight' in this area which means they may have some investment in highly carbon intensive areas. Funds of this kind may choose companies they consider to be 'best in sector' and encourage ever higher standards. Strategies vary. See fund information for further details.
  • Health & wellbeing policies or theme Find funds with policies or themes that set out their approach to health and wellbeing issues. Funds of this kind typically aim to invest in companies with high standards - or encourage high standards. Themed funds are likely to have more of an emphasis on this area. Strategies vary. See fund information for further detail.
  • Nuclear exclusion policy Find funds that have policies which say they avoid or limit their investment in the nuclear industry. Strategies vary. See fund information for further detail.
  • Coal, oil &/or gas majors excluded Funds that avoid investing in major coal, oil and/or gas (extraction) companies. Funds vary: some may exclude all companies that extract oil. Others may have exposure to oil extraction via more diversified energy companies. See fund literature to confirm details.
  • Climate change / greenhouse gas emissions policy Funds that have policies (documented strategies that explain their position on) climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary. Read fund details for further information.
  • Invests in clean energy/renewables Funds that hold companies in the clean energy and renewable energy sectors (at the time research was supplied). Fund strategies vary, in particular the proportion of investment in these areas may vary significantly. Check fund literature for details.
  • Alcohol production excluded Find funds that avoid investment in companies involved in the production of alcohol. Strategies vary; some funds allow a small proportion of profits to come from this area. See fund literature for further information.
  • Fracking and tar sands excluded Funds that avoid companies involved in fracking and tar sands - which are widely regarded as controversial methods of oil and gas extraction. Strategies vary. See fund information for further information.
  • Gambling avoidance policy Find funds that avoid companies with significant involvement in the gambling industry. Some funds may allow a small proportion of profits to come from this area. See fund policy for further details.
  • Pornography avoidance policy Find funds that avoid companies that derive significant income from pornography and related areas. Strategies vary. See fund details for further information.
  • Human rights policy Find funds that have policies relating to human rights issues. Funds of this kind typically require companies to demonstrate higher standards, although some fund managers work to encourage improvements. Investee companies are often judged against internationally agreed norms or standards. Strategies vary. See fund information for further detail.
  • Child labour exclusion Find funds that have policies in place to ensure they do not invest in companies that employ children.
  • Deforestation / palm oil policy Find funds that have policies in place designed to ensure they do not invest in companies that are significantly involved in deforestation. This typically relates to palm oil plantations where biodiversity loss is a major concern (as well as other issues). Strategies vary. See fund information for further detail.
  • Water / sanitation policy or theme Find funds that have policies or themes that set out their position on investment in the water sector and/or sanitation. Strategies vary. See fund information for further detail.
  • Resource efficiency policy or theme Find funds that have a policy or theme that relates to managing natural resources more efficiently. Funds with this policy will be likely to favour companies that make (or enable the) more efficient use of resources - and either avoid or encourage change amongst companies with lower standards. Strategies vary. See fund information for further detail.
  • Sustainable transport policy or theme Find funds that have documented policies or thematic investment approaches relating to investment in more sustainable, greener transport methods. These will typically set out a preference for companies that run, enable or support more sustainable methods of transport. See fund information for further detail.
  • Responsible supply chain policy or theme Find funds that have policies or a theme that relates to the responsible management of supply chains. These may relate to employment issues, notably people employed by their suppliers, as well as the sourcing of materials and products. See fund literature for further information.
  • Plastics policy / reviewing plastics Funds that are reviewing or encouraging companies to manage down the overuse of plastics (particularly single use, non-recyclable plastics). These funds will typically aim to encourage the use of alternative materials, but are unlikely to exclude companies purely on the basis of their use of plastics. Strategies vary. See fund information for further detail.
  • Clean / renewable energy theme or focus Find funds where investment in clean / renewable energy companies an other assets is central to their investment selection strategy. The proportion of the fund that is directly or indirectly invested in renewable energy varies between funds and over time. See fund information for further details.
  • Sustainability theme or focus Find funds where there is a significant emphasis on (environmental and social) sustainability. Funds with a 'sustainability theme' typically place more emphasis on the area than funds with a 'sustainability policy' - meaning that it is more likely to drive investment selection. Strategies vary. See fund information for further detail.
  • Environmental damage and pollution policy Funds that have written policies explaining the approach they take when companies damage the environment or are significant polluters. Funds of this kind may work with companies to encourage higher standards, or exclude companies - sometimes dependent on the situation. Strategies vary. See fund information for further detail.
  • Anti-bribery and corruption policy Find funds that have policies explaining when managers will avoid investing in companies that do not comply with relevant anti-bribery and anti-corruption standards or laws. Strategies vary; the point at which investors may divest can vary. See fund literature for further information.
  • Avoids companies with poor governance Find funds that aim to avoid investing in companies with poor governance practices.(e.g. board structure, management practices etc.) Views may however vary on what counts as 'poor' practices - and funds may not immediately divest as they may prefer to work to encourage higher standards. See fund literature for further information.
  • Digital/cyber security policy Find funds that have policies explaining how the fund managers take into account digital/cyber security related risks. Funds with cyber policies will typically favour companies with higher standards or that are helping to solve problems - but strategies vary. See fund literature for further information.
  • Oppressive regimes exclusion policy Find funds that have policies that explain any exclusions that relate to companies based in, or with operations in, oppressive regimes. Strategies vary. See fund literature for further information.
  • ESG integration strategy Find funds that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. Strategies vary. See fund literature for further information.
  • Encourage board diversity e.g. gender Fund managers encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
  • Arctic drilling exclusion Funds that avoid companies that are involved in extracting oil from the Arctic regions. See fund literature for further details.
  • Unsustainable / illegal deforestation exclusion policy Find funds that have policies in place explaining that they avoid companies involved in illegal and/or unsustainable deforestation. This may relate to palm oil, cattle farming or other concerns. Strategies vary. See fund information for further detail.
  • Fossil fuel reserves exclusion Funds that avoid investing in companies with coal, oil and gas reserves. See fund information for further details.
  • Avoids genetically modified seeds/crop production Find funds that aim to avoid investing in companies that produce genetically modified seeds or crops. (This does not typically include avoiding companies such as supermarkets). See fund literature for further information.
  • Encourage TCFD alignment for banks & insurance companies Find fund managers that encourage the banks and insurance companies they invest in to publish climate change related financial information - as set out by the Task Force on Climate Related Financial Disclosures (with the aim of helping investors measure and respond to climate risk).
  • Demographic / ageing population theme Find funds with a thematic investment approach focusing on the ‘silver economy’ - in particular (typically) the issues and opportunities presented by changing demographics. This could include finance, healthcare and medicines and/ or longevity science to extend lifespans. Strategies vary. See fund literature for further information.
  • Favours cleaner, greener companies Funds that aim to invest in companies with strong or market leading environmental policies and practices. Strategies vary - in particular the balance between 'financial' aspects and environmental benefits. Some may invest substantially in solutions or 'positive impact' companies - others may invest in more conventional companies providing certain environmental criteria are met. See fund information for further detail.
  • Energy efficiency theme Fund funds that have an energy efficiency theme - typically meaning that a fund manager is focused on investing in organisations that manage - or help others to manage - energy use more carefully and less wastefully - and so reduce greenhouse gas emissions.
  • Labour standards policy Find funds that have a labour standards policy - which can be expected to mean that the fund will invest in / favour companies that have higher standards in this area - although fund strategies can vary significantly (as with all policy areas).
  • Fast fashion exclusion Find funds that exclude companies involved in the ‘fast fashion’ sector - these funds will typically be of the view that this area is unsustainable and prone to low environmental and social standards.
  • UN Global Compact linked exclusion policy Find funds that use the UN Global Compact to inform or help direct where they can or cannot invest and will typically not invest in companies with significant breaches (low standards) - although strategies vary. (The UNGC covers a wide range of issues - search 'UNGC').
  • Civilian firearms production exclusion Find funds with a written civilian firearms exclusion policy - meaning that they will not invest in companies that make (or perhaps also sell) handguns made for non-military users.
  • Paris aligned fund strategy This fund has a strategy that means it aims to invest in a way that means its holdings will gradually reduce their greenhouse gas emissions as set out at COP21 in Paris. The eventual aim is to achieve ‘net zero by 2050’ and a ‘maximum global temperature increase of +1.5 to +2 degrees above preindustrial levels’.
  • TCFD reporting requirement Will only invest in companies that report greenhouse gas emissions reduction strategies in line with the framework set out the by the Taskforce for Climate Related Financial Disclosure, which is increasingly becoming mandatory.
  • Predatory lending exclusion Fund excludes financial services companies with widely criticised, aggressive lending practices where interest rates are typically very high, includes ‘doorstep lending’)
  • UN sanctions exclusion Exclude companies that are subject to United Nations sanctions.

SRI Features

  • RSMR Rated (OEIC funds only) Find funds that are rated by research agency 'Rayner Spencer Mills Research' (awarded 'RSMR Rated' status). Read fund literature or contact RSMR for further information.
  • Norms focus Find funds that use internationally agreed standards, conventions and 'norms' to help direct where the fund can and cannot invest (e.g. the UN Global Compact, UN Sustainable Development Goals). Read fund literature for further information.
  • Positive selection bias Find funds that focus on finding and investing in companies with positive / beneficial attributes. This strategy can be applied in addition to exclusion criteria and engagement/stewardship activity.
  • Eurosif Transparency Find funds that meet the standards of the EUROSIF (European Sustainable and Responsible Investment association) Transparency Code. This means that they are a leading fund in terms of openness and transparency, publishing - for example - extensive information about where they invest and how they deal with companies.
  • Over 50% large cap companies Find funds that invests more than half of their money into what are commonly regarded as 'large companies'. This will typically mean that the market capitalisation (or value) of the companies they hold is in excess of £5 to £10 billion.
  • Favours companies with strong social policies Find funds that invest in line with positive strategies that relate to 'people' issues - such as having strong human rights, labour standards and equal opportunities practices. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices. Read fund literature for further information.
  • Strictly screened ethical fund Find funds where their main approach is to apply positive or negative ethical, social and / or environmental screens. Strictly screened funds are likely to exclude more companies than other related fund options. See fund literature for further information.
  • Aims to generate positive impacts (or 'outcomes') Funds that aim to help or support the delivery of positive social or environmental impacts (or societal/real world outcomes) by investing in companies they regard as beneficial to people and / or the planet. Strategies vary. See fund literature for further information.
  • Available via an ISA (OEIC only) Find funds that are available via a tax efficient ISA product wrapper.
  • Combines norms based exclusions with other SRI criteria Find funds that make significant use of internationally agreed 'norms' (e.g. United Nations Global Compact - UNGC - or the UN Sustainable Development Goals - SDGs) as part of their investment selection process alongside additional SRI criteria such as positive or negative stock selection policies and/or stewardship strategies.
  • Combines ESG strategy with other SRI criteria Find funds that have an ESG strategy (which is typically focused on avoiding companies that pose environmental, social or governance related risks) with additional criteria such as positive and/or negative screens, themes and stewardship strategies.
  • Employ external (fund) oversight or advisory committee Find funds that have an external committee that helps steer or advise fund managers on SRI policy or strategy related issues. These people may be paid for their time but are not employees of the fund manager.
  • External (fund) committee has veto powers Find funds that employ an external committee (i.e. not company employees) that has power to veto (i.e. overrule) fund managers stock selection decisions. (This would typically mean the committee can tell the manager of this particular fund not to buy / sell a specific investment when they consider it appropriate to do so.)
  • Measures positive impacts Funds that aim to measure the positive real world environmental and / or social benefits that are associated with their investment strategy. Funds that aim to deliver positive impacts and measure those impacts may be referred to as 'impact funds' - although impact measurement is not restricted to impact funds. Strategies vary. See fund information.
  • Positive environmental impact theme Find funds that specifically set out to help deliver positive environmental impacts, benefits or 'real world' outcomes.
  • Positive social impact theme Find funds that specifically state that they aim to deliver positive social (i.e. people related) impacts and/or outcomes.
  • Invests in small, mid and large cap companies Find a fund that invests in a combination of small, medium and larger (potentially multinational)companies.
  • SRI/ESG/Ethical policies explained on website Find funds that have published explanations of their ethical, social and/or environmental policies online (i.e. fund decision making strategies/ buy/sell &/or asset management strategies).
  • Assets mapped to SDGs Find funds that have 'mapped' (reviewed) their investment selection and management strategies to identify which of the UN Sustainable Development Goals (SDGs) the fund is helping to address.
  • Invests in environmental solutions companies Find funds that direct investment towards companies where a major part of their business is about solving environmental challenges. e.g. companies helping to address climate change.
  • Invests in social solutions companies Find funds that invest in companies where a major part of their business is specifically aimed at helping to address social challenges. e.g. companies helping to address poverty.
  • Invests in sustainability/ESG disruptors Find funds that specifically set out to invest in companies that are regarded as 'disrupting' existing business practices - typically through the development of innovative (sustainability aware) products and/or practices.
  • Invests >25% of fund in environmental/social solutions companies Find funds that invest >25% of their capital towards companies where a major part of their business is focused on helping to address environmental or social challenges.
  • Invests >50% of fund in environmental/social solutions companies Find funds that invest >50% of their capital in companies where a major part of their business is focused on helping to address environmental or social challenges.
  • Sustainability focus Find funds which substantially focus on sustainability issues
  • Encourage higher ESG standards through stewardship activity A core element of these funds will aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity
  • Encourage transition to low carbon through stewardship activity A core element of these funds will aim to encourage the transition to lower carbon activities through responsible ownership / stewardship / engagement / voting activity
  • Encourage more sustainable practices through stewardship A core element of these funds aim to encourage higher sustainability standards across business practices through responsible ownership / stewardship / engagement / voting activity
  • Focus on ESG risk mitigation A major focus of these funds is the careful management of environmental, social and governance (ESG) related risks - typically by avoiding or being underweight in companies seen as posing major risks in these areas (i.e. not necessarily by using themes, exclusions etc).
  • Intended for investors interested in ESG / sustainability Finds funds designed to meet the needs of individual investors with an interest in sustainability, ESG, ethical or related issues. (We would expect almost all funds on this database to tick this box - however can be useful to confirm this for regulatory reasons).
  • Significant Harm exclusion Aims to avoid companies that do significant harm. This originates from the EU’s sustainable finance ‘DNSH’ (do no significant harm) work, which is not necessarily used by UK investors.

Responsible Ownership

  • ESG/SRI engagement (AFM company wide) Find fund management companies that actively encourage higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
  • Responsible Ownership policy for non SRI funds (AFM co. wide) Find funds run by fund managers that apply Responsible Ownership or 'Stewardship' policies to all or most of their investment assets. This means active involvement (e.g. voting, dialogue) with the companies they invest in across funds (not normally limited to ethical or SRI options.) Read fund literature for further information.
  • Integrates ESG factors into all/most fund research Find fund management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.
  • Vote all* shares at AGMs/EGMs (AFM company wide) Find fund managers that vote all* the shares they own at Annual General Meetings and Extraordinary General Meetings. A commitment to voting shares is a key indicator of 'responsible share ownership' demonstrating their support for or disagreement with management policy. (*situations can legitimately, occasionally occur where voting proves impossible, but in principle all shares should be voted.)
  • In house responsible ownership/voting expertise Find fund management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.
  • Responsible Ownership/ESG a key differentiator (AFM co. wide) Find fund managers that consider responsible ownership and ESG to be a key differentiator for their business.
  • UK Stewardship Code signatory (AFM company wide) Find fund managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where fund managers are encouraged to behave like responsible, typically longer term 'company owners'.
  • Publish Responsible Ownership/Stewardship report (AFM co. wide) Find fund management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.
  • Review(ing)carbon/fossil fuel exposure for all funds-AFM co wide Find funds / fund managers that are reviewing, or have reviewed, their exposure to carbon intensive industries including (but not only) mining, oil and gas companies. (Typically with reference to climate change.)
  • PRI signatory Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
  • Boutique/specialist fund management company Find fund management companies that are smaller or specialise in particular areas - notably, ideally ESG related. Strategies vary.
  • UKSIF member Find fund management companies that are members of UKSIF - the UK Sustainable Investment and Finance association
  • Fund EcoMarket partner Find fund management companies that have partnered with Fund EcoMarket - meaning that they are helping to improve access to information on sustainable and responsible investment by paying an annual fee to us which enables us to publish information for free. Partner funds are listed ahead of other funds and have their logos displayed.
  • Climate Action 100+ or IIGCC member Find fund management companies that are members of these collaborative institutional investor led initiatives that aim to encourage companies to reduce carbon (and other greenhouse gas) emissions. This includes encouraging companies to transition to renewable energy, for example, by establishing 'net zero' plans.
  • Encourage carbon / greenhouse gas reduction (AFM company wide) Find fund management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.
  • Employ specialist ESG/SRI/sustainability researchers Find a fund management company that directly employs specialist ESG/SRI/sustainability researchers or analysts. This allows asset managers to discuss environmental, social and governance risks and opportunities directly with companies.
  • Use specialist ESG/SRI/sustainability research companies Find fund management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.
  • In house carbon/GHG reduction policy (AFM co. wide) Find fund management companies that are working to reduce their own (fund management company) carbon/greenhouse gas emissions.
  • Full SRI policy information on company website Find companies that publish information about their sustainable and responsible investment strategies on their company website.
  • Full SRI policy information available on request Find fund management companies that will supply information about their sustainable and responsible investment activity on request.
  • Controversial weapons avoidance policy (AFM company wide) Find fund management companies (not funds) that avoid investment in 'controversial weapons' across all of their funds and other investment vehicles.
  • Diversity & inclusion engagement policy eg. gender (AFM co. wide Find fund management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide).
  • Inhouse diversity improvement programme (AFM company wide) Finds organisations / fund managers that have an in house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
  • Carbon offsetting-as part of our net zero plan (AFM co. wide) This asset management company plans to achieve net zero greenhouse gas (CO2e) emissions with the help of a scheme that will lock away an amount of carbon that is equivalent to the company’s own emissions – so that the end result is ‘net zero’. Calculations and scope vary.
  • TNFD forum member (AFM company wide) A member of the Taskforce for Nature Related Financial Disclosures group which aims to aid risk management and shift money towards nature-positive outcomes.
  • Sustainability transition plan publicly available (AFM co. wide) This asset management company has published a plan that explains how they are to become a sustainable business - without significant negative environmental or social impacts.
  • Senior management KPIs include environmental goals (AFM co wide) The leadership team of this asset manager have performance targets linked to environmental goals.

SRI / Ethical Policy

Janus Henderson has been involved in managing Sustainability portfolios for almost 30 years and the Global Sustainable Equity strategy was launched in 1991. At the heart of the approach is the belief that the best investment returns will be generated by companies which are providing solutions to environmental and social challenges. These companies should have attractive financial attributes such as persistent revenue growth and durable cash flows.

The Global Sustainable Equities (GSE) Team (the ‘team’) aims to outperform the market over the long term through creating a differentiated global equity portfolio of the best sustainability ideas. The team’s investment approach is explicitly low carbon and by incorporating environmental, social, and governance factors into their analysis they seek to construct a portfolio with a favourable risk profile.


Key Distinctions

Investing with Positive Impact

Environmental and social considerations are integral to the investment philosophy and process, from universe definition and idea generation through to fundamental analysis, engagement and portfolio management. A dedicated sustainability professional within the team enables deep integration of sustainability issues into investment process and enhances our ability to analyse issues from multiple angles.


Deep Investment Resource

The dedicated GSE portfolio management team works in collaboration with Janus Henderson’s global equity research platform and draws upon the deep knowledge and domain expertise of the sector and regional teams.


30 Years of Sustainability Thought Leadership

We have a long and successful track record in the consistent application of our sustainability framework – the strategy was launched in 1991 and Hamish Chamberlayne has been managing the strategy since January 2012. We have been thought leaders on sustainability issues since the inception of the strategy and were founding signatories of the UNPRI in 2006.

 

Explicitly Low Carbon

We consider five levels in our approach to low carbon investing. We believe this approach will be a significant source of alpha as the transition to the low carbon economy continues over the next decade and beyond. Hamish Chamberlayne has had training in climate change and has written a paper on the investment implications. The team have many years of experience in analysing, understanding and managing both climate risk and transition risk within portfolios (the strategy has had this low carbon approach since inception in 1991).

 

Continuous Improvement

We have a philosophy of continuous improvement that applies both to ourselves and the companies we invest in. We are always looking to enhance our understanding of evolving sustainability issues and how to incorporate them into our investment process. Our portfolio management is driven by this philosophy.

The team manages the strategy to generate material outperformance against the MSCI World benchmark over the long term.

Ten sustainability themes provide a framework for idea generation. These are derived from the four mega trends of climate change, resource constraints, population growth, and ageing populations. The team believes that the defining investment issue of our time will be transitioning to a low-carbon and sustainable economy, while maintaining the levels of productivity necessary to deliver the goods and services that an ageing and growing population requires. Productivity is the common thread to all the themes.

The team maintains a large database of companies which is continuously refreshed using a variety of research and company engagement.


Five environmental themes:

Cleaner Energy, Sustainable Transport, Water Management, Environmental Services, Efficiency

Five social themes:

Health, Sustainable Property & Finance, Knowledge & Technology, Safety, Quality of Life


The environmental and social themes are used as a framework for ideas generation; however, for the purposes of portfolio construction, there is no forced distribution of themes.
There are qualitative aspects to thematic allocation. To ensure thematic integrity the GSE Team and the ESG Investment Team will debate whether a company should be included within the investable universe.

The Fund targets companies that are growing sustainably. Sustainability runs throughout the investment process, combining positive and negative (avoidance) criteria, and considering both the products of a business (what it does) and the operations (how it does it).

Our voting and engagement are structured around providing solutions to environmental and social challenges. Our approach is informed by the Quintuple Helix Innovation Model*. The model supports the formation of a mutually beneficial situation between ecology, knowledge and innovation, creating interactions between economy, society, and democracy. It is an approach that is geared towards innovation within the context of sustainable development.


*Carayannis, Elias G.; Barth, Thorsten D.; Campbell, David F.J. (2012). "The Quintuple Helix innovation model: global warming as a challenge and driver for innovation". Journal of Innovation and Entrepreneurship.

Please refer to the document titled “Positive Impact Report” for further details on our intended positive environmental or social impacts.

 

 

Resources, Affiliations & Corporate Strategies

The following investment individuals are dedicated to ESG at Janus Henderson:

  • Paul LaCoursiere, CFA - Head of ESG Investments
  • Adrienn Sarandi - Head of ESG Strategy and Development
  • Amarachi Seery, CEnv, MIEncSci, PIEMA - Sustainability Analyst
  • Antony Marsden - Head of Governance & Stewardship
  • Aaron Scully, CFA - Portfolio Manager
  • Artee Khiatani ^ - Credit Analyst – ESG
  • Bhaskar Sastry, CFA - ESG Content Manager
  • Blake Bennett, PhD - Analyst, Governance & Stewardship
  • Charles Devereux, CFA - ESG Corporate Research Analyst
  • Charlotte Nisbet - ESG Corporate Research Analyst
  • Dan Raghoonundon - ESG Corporate Research Analyst, Lead
  • Elizabeth Harrison ^ - Fixed Interest Analyst – ESG
  • Hamish Chamberlayne, CFA - Head of Global Sustainable Equities | Portfolio Manager? Harry Schmidt - Sustainability Analyst
  • Jesse Verheijen - ESG Data Analyst
  • Jigar Pipalia - Portfolio Analyst
  • Natasha Page - Director of Fixed Income ESG
  • Olivia Gull - Analyst, Governance & Stewardship
  • Olivia Jones - Junior ESG Research Analyst
  • Olivia Vernall - Associate Analyst Research & ESG
  • Kimberley Pavier ^ - Sustainability Analyst
  • Ruchi Biyani - Analyst, Governance & Stewardship
  • Xiaoyi Luo Tedjani, FRM - ESG Corporate Research Analyst

Note: This is an evolving group and will be built out with additional professionals.^Some investment professionals listed above manage and have ESG coverage on specific investment desks, but ESG is not their sole focus

The ESG Investment Team, headed by Head of ESG Investments Paul LaCoursiere, is an in-house specialised group focused on ESG data analysis and research, governance, ESG company and thematic engagement, proxy voting and advisory services that serves as a resource for all our investment desks. The team’s mission is to promote ESG integration across the business. They play a leading role internally in working with investment desks to enhance their ESG integration processes and externally leading our active participation in numerous ESG initiatives. The three areas of this group are described below.

Governance & Stewardship

The Governance & Stewardship Team focuses on supporting investment teams on governance, proxy voting advisory, and ESG company and thematic engagement. The team’s mission is to promote ESG integration across the business. They play a leading role internally in working with investment teams to enhance their ESG integration processes and externally leading our active participation in numerous ESG initiatives.

ESG Investment Research

This is a new and developing team whose primary purpose will be to support a consistent methodology for evaluating ESG performance of issues across sectors and industries, with a focus on financial materiality. The team will be structured by relevant ESG risk differentiation (super-sector on the corporate side and a specialist focused on sovereign) with a natural overlay of ESG theme accountability. The team will collaborate with investment desks to produce a deep dive analysis of a company, industry or theme. The primary accountability for the team will be to publish a methodology for the portion of the opportunity set for which they are responsible and to periodically present thematic / industry / region level pieces, articulating how ESG issues impact a group of issuers and their relative ESG performance.

ESG Strategy & Development

As another new, specialist team, the ESG Strategy & Development group will consist of specialists focusing on data, content, product design and investment desk support with advisory services on ESG investing across all asset classes.

In addition to the above specialist investment teams, we also have dedicated ESG resources embedded on some investment desks.

We believe that strong governance is foundational to good business and all aspects of ESG. In 2021, we refined our ESG governance structure, forming a new ESG Oversight Committee that will be accountable for key strategic decisions with respect to ESG investment processes, implementation of regulatory changes, ESG data and product design. The group is led by the Global Head of ESG Investments and complements the ESG Program Steering Committee, that consists of the firm’s senior leadership, led by the Global Chief Investment Officer.

ESG considerations are a key component of the active investment processes employed by our investment teams. These teams operate and are structured in ways most suited to their respective asset classes. Aside from expectations outlined under our ESG Investment Principles, the precise approach to and depth of ESG integration is down to the discretion and judgement of our investment teams, who apply their differentiated perspectives, insight and experience to identify sustainable business practices that can generate long-term value for investors.

Janus Henderson’s investment teams manage portfolios that reflect different ESG factors. We also have strategies that have a unilateral focus on sustainability. On a corporate level, we support the investment teams in embedding ESG considerations in their work. This support includes centralised functions, such as data management, research, investment platforms, and risk management tools:

Internal Research Platform

Investment teams share relevant ESG research produced in-house by our analysts across a centralised research platform.

ESG Investment Team

The ESG Investment Team is an in-house specialised group focused on ESG data analysis and research, governance, ESG company and thematic engagement, proxy voting and advisory services that serves as a resource for all our investment desks. The team’s mission is to promote ESG integration across the business. They play a leading role internally in working with investment desks to enhance their ESG integration processes and externally leading our active participation in numerous ESG initiatives.

ESG Risk Reporting

ESG data is incorporated into our risk reporting tools, covering issues such as exposure to companies with low ESG ratings, controversies, weak corporate governance, and climate risk.

ESG Research, Data and Ratings

We subscribe to a broad range of external ESG information providers and make this information available directly to the investment teams.

Janus Henderson subscribes to a wide range of specialist ESG research providers and makes this information available directly to the investment teams. However, we do not base our investment decisions solely on third-party ESG data. Rather, we augment our proprietary ESG analysis and ESG ratings with data from third parties.

We use a wide range of specialist ESG research, data and tools from providers, including:

  • Sustainalytics
  • MSCI
  • Vigeo EIRIS
  • ISS Climate Impact
  • Institutional Voting Information Service (IVIS)
  • RepRisk
  • ISS Quality Score
  • ISS Proxy Voting Research
  • FTSE Russell Beyond Ratings
  • TPI, CDP, SASB, CBI, SBTi
  • GRESB
  • Other specialist broker research

Investment teams share relevant ESG research produced in-house by our analysts across a centralised research platform, eQuantum.

ESG Affiliations, Memberships, Initiatives and Certifications

In addition to being a founding signatory of the UNPRI, as part of our commitment to responsible investment, Janus Henderson is involved in a wide range of ESG related initiatives and working groups as a member, supporter or in an advisory capacity.

Our participation in industry working groups along with our sharing of insights and knowledge of ESG through our published materials reflects our firm as active proponents of sustainable finance. In 2021, we generated approximately 50 thought leadership and educational pieces on ESG topics. As part of our Knowledge Shared approach, we share the views of our investment teams as articles, videos and white papers on our website. We publicly support standard setters and industry groups listed above who work with governments to support greater sustainability within investments. Where possible, we contribute to ESG policy and regulatory discussions through our response to consultations.

For the full list of our ESG Affiliations, Memberships and Certification details please refer to the Affiliations section in our website (Impact report).

 

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Janus Henderson Investors
201 Bishopsgate, London EC2M 3AE
Tel: 020 7818 1818 Fax: 020 7818 1819


Important information

This document is intended solely for the use of professionals, defined as Eligible Counterparties or Professional Clients, and is not for general public distribution. Marketing Communication. Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Tax assumptions and reliefs depend upon an investor’s particular circumstances and may change if those circumstances or the law change. If you invest through a third party provider you are advised to consult them directly as charges, performance and terms and conditions may differ materially. Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. Any investment application will be made solely on the basis of the information contained in the Prospectus (including all relevant covering documents), which will contain investment restrictions. This document is intended as a summary only and potential investors must read the prospectus, and where relevant, the key investor information document before investing. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes.

Issued in Europe by Janus Henderson Investors. Janus Henderson Investors is the name under which investment products and services are provided by Janus Henderson Investors International Limited (reg no. 3594615), Janus Henderson Investors UK Limited (reg. no. 906355), Janus Henderson Fund Management UK Limited (reg. no. 2678531), Henderson Equity Partners Limited (reg. no.2606646), (each registered in England and Wales at 201 Bishopsgate, London EC2M 3AE and regulated by the Financial Conduct Authority) and Henderson Management S.A. (reg no. B22848 at 2 Rue de Bitbourg, L-1273, Luxembourg and regulated by the Commission de Surveillance du Secteur Financier).
Janus Henderson, Knowledge Shared and Knowledge Labs are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc.

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