Scottish Widows (Zurich) Henderson Global Sustainable Equity ZP (Pension)
SRI / Ethical Overview
This Pension product is linked to the "Janus Henderson Global Sustainable Equity” fund. The following information refers to the primary (OIEC) fund.
The investment team believe that the best investment returns will be generated by companies providing solutions to environmental and social challenges. The team aims to outperform the market and global equity peers over the long-term through creating a differentiated global equity portfolio of the best sustainability ideas. The Fund employs an integrated approach to sustainable and responsible investment (SRI), combining positive and negative investment criteria as well as integrating environmental, social and governance factors into the bottom-up, fundamental company analysis.
The Fund 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.
SRI Policies (Primary strategy in bold)
- Environmental policy Find 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.
- 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.
- Limits exposure to carbon intensive industries Find 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.
- Sustainability policy Find 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.
- 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.
- 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.
- 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.
- 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.
- Biodiversity Policy Find funds that have a written biodiversity policy or theme aimed at encouraging and improving environmental protection and safeguarding the natural world (sometimes referred to as the preservation or enhancement of 'natural capital').
- 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.
- Coal, oil &/or gas majors excluded Find 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 Find 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 Find funds that invest in companies in the clean energy and renewable energy sectors. 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 Find 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.
- Single resource theme Single resource themed funds focus their investment strategy on a single natural 'resource' eg water. 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.
- Clean / renewable energy themed Find funds that invest in clean / renewable energy companies. The proportion of the fund that is directly or indirectly invested in renewable energy varies between funds. See fund information for further details.
- Plastics policy / reviewing plastics Find 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.
- Sustainability themed 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 Find 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 Find 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.
- Avoids companies with fossil fuel reserves Find 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 Find 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.
- Diversity policy (fund level) Find individual funds that have a written diversity policy – where the fund manager will aim to select companies with a carefully considered, sound approach to diversity. This should ideally cover a range of issues including gender, ethnicity, disability, beliefs, sexual orientation, etc.
- 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.
- EU Sustainable Finance Taxonomy holdings >25% of assets Find funds that have calculated the proportion of fund asset that meet the new EU Taxonomy requirements and that they total over 25% of fund assets. This will typically require adding up the proportion of each individual company's activity that is regarded as 'green' so that the fund manager can produce an overall total for the whole fund / portfolio.
- 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.
- Negative selection bias Find funds where their main 'ethical approach' is to avoid companies by using negative screening criteria. Read fund literature for further information.
- Balances company 'pros and cons'/best in sector Find funds that consider both the 'positive' and 'negative' aspects of company behaviour and make balanced, considered decisions as part of their investment approach. May apply to a range of different issues and policy areas.
- 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.
- Limited/few ethical exclusions* Find funds with few exclusions - typically for example exclude tobacco or companies that breach commonly adopted standards or norms such as the UN Global Compact.
- Aims to generate positive impacts (or 'outcomes') Find 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 see as beneficial to people 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.
- Invests mostly in large cap companies Find funds that have SRI strategies and focus their investment stock selection on larger companies. (e.g. over circa £5-£10bn)
- 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 Find funds that aim to measure the positive effect of their investment strategy for society and/or the environment. Funds that aim to deliver positive impacts and measure those impacts are often referred to as 'impact funds', particularly where this is stated within fund objectives. 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.
- Data led strategy Find funds that make stock selection (and ongoing fund management) decisions based on ESG data or company ratings (normally supplied by third parties) rather than focusing on what individual companies do, how they operate or their plans for the future
- 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).
- Report against sustainability objectives Find funds that publicly report their performance against specifically named sustainability objectives (in addition to reporting their financial performance)
- Portfolio SRI / ESG options available (DFMs) Only applicable for DFM’s & portfolio providers. Finds those that offer an SRI / ESG portfolio option
- Multiple SRI / ESG portfolio options available (DFMs) Only applicable for DFM’s & portfolio providers. Find service providers who offer multiple SRI / ESG portfolio options
- Bespoke SRI/ ESG portfolios available (DFMs) Only applicable for DFM’s & portfolio providers. Find service providers who offer bespoke ('personalised') SRI / ESG portfolio options
- 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).
- ESG/SRI engagement (AM 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 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 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 Find fund managers that consider responsible ownership and ESG to be a key differentiator for their business.
- UK Stewardship Code signatory 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 Find fund management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.
- Publish full voting record Find fund management companies that publishes a full record of how they vote at AGMs (annual general meetings) and EGMs (extraordinary general meetings). This information helps show their approach to ESG issues - although other activity is also relevant.
- Review(ing) carbon/fossil fuel exposure for all funds 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'.
- 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 responsible corporate taxation Find fund management companies that are working with the companies they invest in to encourage more responsible corporate taxation.
- Encourage carbon / greenhouse gas reduction 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 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.
- Responsible ownership / stewardship policy (company wide) Finds fund management companies that have 'responsible investment ownership' - also known as 'stewardship' policy - that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.
- Sustainable property strategy (company wide) Find fund management companies that take sustainability criteria into account when selecting and/or managing all of their property / real estate investments.
- Inhouse diversity improvement programme 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.
SRI / Ethical Policy
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 Global Sustainable Equity (GSE) Team and the Governance & Responsible Investment (GRI) Team will debate whether a company should be included within the investable universe.
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 Equity (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.
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.
Almost 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 5 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).
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.
Resources, Affiliations & Corporate Strategies
ESG Governance structure
As an organisation dedicated to the management of risk, we embrace all relevant aspects of governance and overall risk management. Our commitment to good corporate governance is evident in our policies and practices and held to the highest standards by our Board of Directors and our stakeholders.
In 2020, we created an ESG-specific governance structure, which reports up to our Chief Executive Officer. This governance structure is designed to monitor key trends, evaluate appropriate solution opportunities, refine ESG investment frameworks and methodologies, and ensure we are in tune with the appropriate partnerships, alliances, and regulatory requirements associated with ESG
Beyond our Corporate commitment to ESG (where more information can be referenced at www.janushenderson.com/esg), Janus Henderson has two new appointments in 2020 as well:
- Paul LaCoursiere, Global Head of ESG Investments
- Kelly Hagg, Global Head of Product Strategy & ESG Distribution
These recent appointments underscore Janus Henderson’s deep commitment both on the Investment and Corporate/Distribution/Product side of ESG for our clients and stakeholders at large.
ESG Factors within the Investment Process
In keeping with our belief that our investment teams should structure their processes in ways that can best deliver expected client outcomes, we do not apply top-down rules or an exclusionary approach to ESG integration. Rather, each team defines the ESG considerations they believe are material to their investment approach and the long-term, sustainable growth of the companies in which they invest. Within the overall corporate framework and guidelines that have been established by the firm, we believe strongly that commitments and accountability for the execution of ESG considerations must rest within the hands of portfolio managers and their teams. Rather than pursue a one-size-fits-all approach, teams are responsible for articulating their specific objectives as part of their Investment Policy Statement. This means that the evaluation of our implementation of ESG criteria is carried out at the strategy level and we encourage and support each team to stand on its own ESG vision.
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.
Governance & Responsible Investment Team
Our GRI Team is specialised and focused on ESG analysis, company engagement and voting and serves as a resource for all our investment teams. 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.
Governance and Responsible Investment Team Biographies
Antony Marsden- Head of Governance & Responsible Investment
Antony Marsden is Head of Governance & Responsible Investment at Janus Henderson Investors, a position he has held since 2014. In this role, he leads the implementation of Janus Henderson’s responsible investment policies and supports the integration of environmental, social, and corporate governance (ESG) issues across Janus Henderson’s investment teams. Antony joined Henderson in 2005 as corporate governance manager. Prior to Henderson, he spent over six years at Pensions & Investment Research Consultants Ltd (PIRC), a corporate governance consultancy, in a variety of roles.
Antony has a degree in politics and international studies from the University of Warwick and an MSc with distinction in corporate governance and ethics from Birkbeck College, University of London. He holds the Investment Management Certificate (IMC) and has 22 years financial industry experience.
Olivia Gull - Analyst, Governance and Responsible Investment
Olivia Gull is a Governance and Responsible Investment Analyst at Janus Henderson Investors, a position she has held since 2018. Olivia joined Henderson in 2015 and has worked on the broker relations and the front office governance and risk teams. Prior to Henderson, she was with the Centre for Chinese studies in South Africa while completing the Chinese Proficiency Exam (HSK 3).
Oliva has a degree in international studies from Stellenbosch University, majoring in politics and Mandarin. She sits on the Janus Henderson Diversity and Inclusion EMEA council. She holds the Investment Management Certificate (IMC) and has 6 years of financial industry experience.
Charlotte Nisbet - Analyst, Governance and Responsible Investment
Charlotte Nisbet is a Governance and Responsible Investment Analyst at Janus Henderson Investors, a position she has held since 2020. Prior to this, she was a senior investment manager at Sarasin & Partners from 2015. Earlier, she was an account executive at Smithfield Consultants from 2013.
Charlotte received her Bachelor of Arts degree (Hons) in history from Newcastle University in the UK. She sits on the Janus Henderson Gender Diversity EMEA council. Charlotte holds the Investment Management Certificate (IMC) and the CISI Level 7 Diploma in Wealth Management and has 6 years of financial industry experience.
David Ray - Analyst, Governance and Responsible Investment
David Ray is a Governance and Responsible Investment Analyst at Janus Henderson Investors, a position he has held since joining the firm in 2018. Prior to this, David was employed in a research role at the Center for Environmental Policy, Imperial College London and as a sustainability consultant on several large projects. Before working in sustainability, he was a scientist in a technical services and consultancy division of Cobham plc for three years.
David received a BSc degree (Hons) in physics from the University of Sheffield and an MSc with distinction in environmental technology (environmental economics and policy specialisation) from Imperial College London. He holds the Investment Management Certificate (IMC) and has 3 years of financial industry experience.
The Global Sustainable Equity (GSE) team
The Firm also has a dedicated GSE team that solely focuses on managing sustainability-themed strategies. The GSE team is led by Hamish Chamberlayne along with Aaron Scully, CFA, portfolio manager and dedicated Sustainability Analyst, Ama Seery, CEnv.
In addition to our firm wide resources, we also have strategy specific ESG resources who work closely with Investment Team members within their asset class, for example our dedicated Fixed Income ESG working group, led by Adrienn Sarandi, Director of Fixed Income ESG.
GSE Team Biographies:
Hamish Chamberlayne - CFA Head of Global Sustainable Equities | Portfolio Manager
Hamish Chamberlayne is Head of Global Sustainable Equities at Janus Henderson Investors. He is also Portfolio Manager of the Janus Henderson Global Sustainable Equity and Institutional Global Responsible Managed strategies, a role he has had since 2013. He was an investment manager with the firm from 2012. Hamish joined Henderson as an investment analyst in 2011 from Gartmore, where he was an equity analyst with the global equity team. Prior to this, from 2004 to 2007 he worked as a senior auditor at PricewaterhouseCoopers, where he covered a variety of sectors, including energy, technology, and communications. He began his career at Burlington Consultants in 2003 performing commercial due diligence on businesses identified as acquisition targets by private equity houses.
Hamish graduated with a master’s degree in chemistry from New College, Oxford University. He holds the Chartered Financial Analyst designation and is a qualified accountant. He has 18 years of financial industry experience.
Aaron Scully - CFA Portfolio Manager
Aaron Scully is a Portfolio Manager on the Global Sustainable Equity Team at Janus Henderson Investors, a position he has held since 2019. From 2017, he was an assistant portfolio manager and was a research analyst from 2009 to 2019 focused on the real estate, infrastructure, and financial sectors. Aaron joined Janus in 2001 as a corporate financial analyst, became a research associate in 2004 and was promoted to junior equity analyst in 2007. Prior to that, he worked as a financial analyst in the financial development program at Cardinal Health.
Aaron received his Bachelor of Science degree in finance from Indiana University. He holds the Chartered Financial Analyst designation and has 23 years of financial industry experience.
Ama Seery - CEnv Sustainability Analyst
Ama Seery is a Sustainability Analyst at Janus Henderson Investors, a position she has held since 2018. Prior to joining the firm, Ama worked as a sustainability professional in the property sector, first as a scheme manager for BREEAM (green building certification) and later teaching others how to certify green buildings before moving into constructing them.
Ama graduated with a master’s degree in interdisciplinary design for the built environment from Cambridge University, Wolfson College. She holds the Chartered Environmentalist designation and has 13 years of sustainability experience.
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.
Third party ESG providers
Janus Henderson subscribes to a wide range of specialist ESG research providers, including:
- Vigeo EIRIS
- ISS Climate Impact
- Institutional Voting Information Service (IVIS)
- ISS Quality Score
- ISS Proxy Voting Research
- Other specialist broker research
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.
The analysis of ESG factors is an integral component across Janus Henderson’s investment capabilities that utilise a fundamental research process to evaluate corporate equity and debt securities. It is our goal as a steward of client assets to understand all aspects of what can impact a security’s investment returns. Blending quantitative financial analysis with a qualitative evaluation, including any potential impact from ESG factors, helps our investment teams make a more informed assessment of the intrinsic value of a security.
ESG Affiliations, Memberships 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 as a member, supporter or in an advisory capacity.
For the full list of our ESG Affiliations, Memberships and Certification details please refer to the Affiliations section in our website.