What is ESG?


Issues relating to the quality and functioning of the natural environment and natural systems, such as carbon emissions, environmental regulations, water stress and waste.

Issues relating to the rights, wellbeing and interests of people and communities, such as labour management, health & safety and product safety.

Issues relating to the management and oversight of companies and other investee entities, such as board, ownership and pay.
 




     

Why invest sustainably?



ESG factors can impact corporate revenues, costs and operating cash flows. They can erode the value of assets and limit access to financing.


Companies that address these issues by adopting sustainable business practices can navigate the risks and take advantage of opportunities to create long-term value.


Investing sustainably can be achieved by avoiding companies with poor practices in this area, actively selecting leaders in each field, or focusing on specific themes such as renewable energy, clean water or low carbon emissions.


Positive ESG selection and exclusion does not need to cost investors returns.

   

Source: MSCI, Thomson Reuters Datastream, J.P. Morgan Asset Management. Both MSCI ACWI and MSCI ACWI ESG Leaders are in USD, rebased to 100 at the inception of the ESG Leaders index. MSCI ACWI ESG Leaders is a capitalisation-weighted price index that provides exposure to companies with high Environmental, Social and Governance (ESG) rankings relative to their sector peers and excludes companies with involvement in alcohol, gambling, tobacco, nuclear power and weapons. ESG rankings are given to companies based on the MSCI framework. The MSCI ESG Leaders index aims to target the sector weights of the underlying indices to limit systematic risk introduced by the ESG selection process.

Past performance is not a reliable indicator of current and future results.

Guide to the Markets - Europe.
Data as of 30 September 2018.




 

The asset classes displayed are those in which J.P. Morgan Asset Management currently provides sustainable investment solutions. As of 30 March 2018.

 

Our capabilities are aligned with client objectives



Through our engagement with clients and partner organisations, we continually expand our thinking on key ESG issues and best practices.


We have been a signatory to the United Nations-supported Principles for Responsible Investment initiative since 2007 and are committed to incorporating ESG factors into our investment practices, where material and relevant.


We offer solutions across the spectrum of sustainable investing, to meet diverse client needs.


     


Related documents


Sustainable Investing Statement

An overview of our ESG commitment and capabilities ►

Investment Perspectives on Climate Risk

Learn about climate change as an investment risk ►

ESG in Emerging Markets
 

Our approach to ESG in Emerging Markets ►

Quarterly Perspectives: Sustainable investing

What is it and how does it affect investment decisions? ►







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This is a marketing communication and as such the views contained herein are not to be taken as advice or a recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are, unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not a reliable indicator of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/jpmpdf/1320694304816.pdf. As the product may not be authorized or its offering may be restricted in your jurisdiction, it is the responsibility of every reader to satisfy himself as to the full observance of the laws and regulations of the relevant jurisdiction. Prior to any application investors are advised to take all necessary legal, regulatory and tax advice on the consequences of an investment in the products. Shares or other interests may not be offered to, or purchased, directly or indirectly by US persons. All transactions should be based on the latest available Prospectus, the Key Investor Information Document (KIID) and any applicable local offering document. These documents together with the annual report, semi-annual report and the articles of incorporation for the Luxembourg domiciled products are available free of charge upon request from JPMorgan Asset Management (Europe) S.à r.l., 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, your financial adviser or your J.P. Morgan Asset Management regional contact. In Switzerland, JPMorgan Asset Management (Switzerland) LLC, Dreikönigstrasse 21, 8002 Zurich, acts as Swiss representative of the funds and J.P. Morgan (Suisse) SA, 8 Rue de la Confédération, 1204 Geneva, as paying agent of the funds. This communication is issued in Europe (excluding UK) by JPMorgan Asset Management (Europe) S.à r.l., 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, R.C.S. Luxembourg B27900, corporate capital EUR 10.000.000. This communication is issued in the UK by JPMorgan Asset Management (UK) Limited which is authorised and regulated by the Financial Conduct Authority. Registered in England No. 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.


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