Skip to main content
logo
  • Funds

    Fund Explorer

    • SICAVs
    • Exchange-Traded Funds
    • Liquidity Funds

    Fund Information

    • Regulatory Documents
    • Regulatory Updates
  • Investment Strategies

    Investment Options

    • Alternatives
    • Beta Strategies
    • Equities
    • Fixed Income
    • Global Liquidity
    • Multi-Asset Solutions

    Capabilities & Solutions

    • ETFs
    • Global Insurance Solutions
    • Outsourced CIO
    • Sustainable investing
    • Investing in China
    • Market Volatility
    • Fixed income revival
  • Insights

    Market Insights

    • Market Insights Overview
    • Eye on the Market
    • Guide to the Markets
    • Guide to Alternatives
    • Investment Outlook

    Portfolio Insights

    • Portfolio Insights Overview
    • Alternatives
    • Asset Class Views
    • Currency
    • Equity
    • ETF Perspectives
    • Fixed Income
    • Long-Term Capital Market Assumptions
    • Sustainable Investing Insights
    • Strategic Investment Advisory Group
  • Resources
    • Center for Investment Excellence Podcasts
    • Library
    • Insights App
    • Webcasts
    • Morgan Institutional
    • Investment Academy
  • About us
    • Diversity, Equity and Inclusion
    • Corporate and Social Responsibility
  • Contact Us
  • English
  • Role
  • Country
  • Morgan Institutional
    Search
    Search
    Menu
    You are about to leave the site Close
    J.P. Morgan Asset Management’s website and/or mobile terms, privacy and security policies don't apply to the site or app you're about to visit. Please review its terms, privacy and security policies to see how they apply to you. J.P. Morgan Asset Management isn’t responsible for (and doesn't provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the J.P. Morgan Asset Management name.
    CONTINUE Go Back
    You are about to leave the site Close
    J.P. Morgan Asset Management’s website and/or mobile terms, privacy and security policies don't apply to the site or app you're about to visit. Please review its terms, privacy and security policies to see how they apply to you. J.P. Morgan Asset Management isn’t responsible for (and doesn't provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the J.P. Morgan Asset Management name.
    CONTINUE Go Back
    1. Home | Institutional Investors
    2. Investment Strategies
    3. Sustainable investing

    Global regulators and other stakeholders are working to improve the quality and availability of climate-related financial information. The Financial Stability Board1 (FSB)’s Task Force on Climate-related Financial Disclosures (TCFD), created in 2015, has led to one of the most significant efforts to enhance climate-related information in financial disclosures.

    The TCFD has issued several climate-related disclosure recommendations that are designed to help public companies and other organisations disclose more effectively climate-related risks and opportunities through their existing reporting processes. These guidelines were first released in June 20172 and were updated and re-issued in October 20213.

    The TCFD guidance suggests that all financial and non-financial organisations with public debt or equity implement its recommended disclosures; it also encourages asset managers and asset owners, including public- and private-sector pension plans, endowments and foundations, to implement the disclosure recommendations.


    What are the TCFD recommendations?

     

    The FSB created the TCFD to develop consistent climate-related financial risk disclosures. The TCFD recommendations are climate-related financial disclosures structured across four key areas that represent foundational elements of how organisations operate: governance, strategy, risk management, and metrics and targets (“TCFD Recommendations”).


    Source: Recommendations of the Task Force on Climate-related Financial Disclosures Final Report, June 2017.
    https://assets.bbhub.io/company/sites/60/2021/10/FINAL-2017-TCFD-Report.pdf


    How will the TCFD recommendations be implemented?

     

    The TCFD suggests that all financial and non-financial organizations with public debt or equity implement its recommended disclosures in their public annual financial filings.

    The TCFD also encourages asset managers and asset owners, including public- and private-sector pension plans, endowments, and foundations, to implement the disclosure recommendations, report them to their beneficiaries and clients through existing means of financial reporting, when possible, and disclose publicly via their websites or other public avenues of disclosure.

    In 2022, certain regulators in Asia-Pacific (APAC) such as those in Hong Kong and Singapore made disclosures on how climate-related risks are managed mandatory for asset managers.

    In addition, in 2022 the United Kingdom (“UK”) became the first G20 country to make it mandatory for large companies and certain financial institutions to disclose their climate-related risks and opportunities, in line with TCFD recommendations.

    In the UK, FCA-regulated asset managers and asset owners – including life insurers and pension providers – are also in-scope of these obligations and have to disclose how they take climate-related risks and opportunities into account in managing investments. They will also have to make disclosures about the climate-related attributes of their products.

    Asset managers and asset owners will have a phased implementation, with the rules initially applying to the largest firms (with over £50 billion in AUM) and coming into effect for smaller firms (above the £5 billion threshold) one year later.


    How is J.P. Morgan Asset Management implementing the TCFD recommendations?

     

    J.P. Morgan Asset Management (“JPMAM”) has decided the best way to report on climate-related topics, including, where relevant, to meet climate-related disclosure requirements applicable to different legal entities of JPMAM, is to adopt a globally consistent approach, and to address any specific local requirements via local addendums.

    In 2019, JPMorgan Chase & Co. (“JPMC”) published its first TCFD report. Since 2022, we have produced a TCFD report specific to J.P. Morgan Asset Management, on an annual basis, to continue in our journey towards providing more transparency and disclosure on climate-related matters.


    What is the impact to our clients, our portfolios and the financial services ecosystem?

     

    Climate-related disclosures may comprise of voluntary disclosures made by financial market participants or companies to mandatory disclosure and reporting requirements at a legal entity and financial product level, as applicable. While the implementation of these disclosures is still evolving, we believe the result will be an increase in the quality and availability of information and transparency, benefiting clients, our portfolios and the broader financial services ecosystem.

    While we believe that our clients will ultimately benefit from greater climate-related disclosures, the impact may vary. For example, institutional asset owners may be more likely to find the disclosures more immediately useful as they may be working to establish or improve their own frameworks to assess climate-related risks and opportunities or define sustainability goals, which may involve climate-related aspects, such to explore ways to lower their carbon footprint or seek to capitalize on the transition to a lower-carbon economy.

    Some of the investee companies in our portfolios may begin to disclose in line with the TCFD recommendations, which will provide our portfolio managers with more detailed information, among others, when considering candidates for a portfolio. Improved climate-related disclosures may also help with our climate-related engagement efforts with investee companies.


    1The FSB promotes international financial stability; it does so by coordinating national financial authorities and international standard-setting bodies as they work toward developing strong regulatory, supervisory and other financial sector policies. It fosters a level playing field by encouraging coherent implementation of these policies across sectors and jurisdictions.
    2https://assets.bbhub.io/company/sites/60/2020/10/FINAL-2017-TCFD-Report-11052018.pdf
    3https://assets.bbhub.io/company/sites/60/2021/07/2021-TCFD-Implementing_Guidance.pdf

    09wb220507122332

     

    The views contained herein are not to be taken as advice or a recommendation to buy or sell any investment in any jurisdiction, nor is it a commitment from J.P. Morgan Asset Management or any of its subsidiaries to participate in any of the transactions mentioned herein. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit and accounting implications and determine, together with their own financial professional, if any investment mentioned herein is believed to be appropriate to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. It should be noted that investment involves risks, 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. Both past performance and yield are not a reliable indicator of current and future results. J.P. Morgan Asset Management is the brand 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 privacy policies at https://am.jpmorgan.com/global/privacy. This communication is issued by the following entities: In the United States, by J.P. Morgan Investment Management Inc. or J.P. Morgan Alternative Asset Management, Inc., both regulated by the Securities and Exchange Commission; in Latin America, for intended recipients’ use only, by local J.P. Morgan entities, as the case may be; in Canada, for institutional clients’ use only, by JPMorgan Asset Management (Canada) Inc., which is a registered Portfolio Manager and Exempt Market Dealer in all Canadian provinces and territories except the Yukon and is also registered as an Investment Fund Manager in British Columbia, Ontario, Quebec and Newfoundland and Labrador. In the United Kingdom, by JPMorgan Asset Management (UK) Limited, which is authorized and regulated by the Financial Conduct Authority; in other European jurisdictions, by JPMorgan Asset Management (Europe) S.à r.l. In Asia Pacific (“APAC”), by the following issuing entities and in the respective jurisdictions in which they are primarily regulated: JPMorgan Asset Management (Asia Pacific) Limited, or JPMorgan Funds (Asia) Limited, or JPMorgan Asset Management Real Assets (Asia) Limited, each of which is regulated by the Securities and Futures Commission of Hong Kong; JPMorgan Asset Management (Singapore) Limited (Co. Reg. No. 197601586K), this advertisement or publication has not been reviewed by the Monetary Authority of Singapore; JPMorgan Asset Management (Taiwan) Limited; JPMorgan Asset Management (Japan) Limited, which is a member of the Investment Trusts Association, Japan, the Japan Investment Advisers Association, Type II Financial Instruments Firms Association and the Japan Securities Dealers Association and is regulated by the Financial Services Agency (registration number “Kanto Local Finance Bureau (Financial Instruments Firm) No. 330”); in Australia, to wholesale clients only as defined in section 761A and 761G of the Corporations Act 2001 (Commonwealth), by JPMorgan Asset Management (Australia) Limited (ABN 55143832080) (AFSL 376919). For U.S. only: If you are a person with a disability and need additional support in viewing the material, please call us at 1-800-343-1113 for assistance. Copyright 2023 JPMorgan Chase & Co. All rights reserved.

    J.P. Morgan Asset Management

    • About us
    • Investment stewardship
    • Privacy policy
    • Cookie policy
    • Sitemap
    J.P. Morgan

    • J.P. Morgan
    • JPMorgan Chase
    • Chase
    Opens LinkedIn site in new window

    READ IMPORTANT LEGAL INFORMATION. CLICK HERE >

    The value of investments may go down as well as up and investors may not get back the full amount invested.

    Copyright 2023 JPMorgan Chase & Co. All rights reserved.