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    1. Climate Change Solutions Fund

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    JP Morgan | Climate Change Solutions

    JPMorgan Climate
    Change Solutions Fund

    Read more
    The big picture
    Capturing innovation
    How it works
    Fund in depth

    Climate change investing demands intelligence

    Climate change is one of the biggest challenges we face as a society. But companies around the globe are rising to the challenge. Scroll down to see how widespread innovation is driving progress towards a solution.

    Activate awareness

        1 ° %
    Increase in global temperatures vs. pre-industrial levels, on track to reach 3° by the end of the century Decrease in the price of solar PV modules since the end of 2009
    Source: IPCC, Sarah Connors and Roz Pidcock (2018), SR1.5°C Frequently Asked Questions, Published online at ipcc.ch as at 3 Nov 2022 Source: IRENA, Power Generation Costs, Published online at irena.org as at 30 Jan 2023
        50 bn x
    Tons of greenhouse gas emissions released into the atmosphere every year Increase in the global electric car stock in 2021 vs 2019
    Source: Our World in Data, Hannah Ritchie, Max Roser and Pablo Rosado (2020), CO₂ and Greenhouse Gas Emissions, Published online at OurWorldInData.org as at 3 Nov 2022 Source: IEA, Global Electric Vehicle Outlook 2022. Published online at iea.org as at 30 Jan 2023
        50 % %
    Expected increase in global energy demand by 2050 Increase of renewable global power generation in 2021
    Source: US Energy Information Administration, International Energy Outlook 2019, Published online at eia.gov as at 24 Jan 2023 Source: bp (2022) bp Statistical Review of World Energy, as at 30 Jan 2023

    Capturing climate innovation

    Click on the sectors to explore the case studies

    Climate Change Solutions Fund invests in the forward-thinking companies developing and scaling solutions to address the drivers of climate change, tapping into a wave of innovation across sectors and across the market cap spectrum.

    Sustainable Food & Water
    Sustainable Construction
    Sustainable Transport
    Renewables & Electrification
    Recycling & Re-Use

    Sustainable Food & Water
    euro flagCNH Industrial

    World leading precision farming equipment and services provider

    180
    Countries

    With operations and more than 70,000 employees

    1,000
    Gallons less

    Of herbicide applied when technologies used

    14,000+
    Patents

    Developed in house across 59 dedicated research and development centres

    400,000
    Tons

    Of CO2 equivalent will be avoided through the use of CNHI’s equipment.

    Treatment of the important resource on the planet

    CNH Industrial develops equipment across both the agriculture and construction sectors across five separate brands in their portfolio.

    Leader in precision farming and agriculture products – using a combination of data, sensor based technology integrated with traditional farming equipment for superior crop yields and less wastage.

    Agriculture solutions with a commitment to reduce carbon footprint

    Actively engaged in reducing their own carbon footprint of their supply chain:


    • -8.5% of energy consumption in 2021 compared to 2020
    • 51% of water used is recycled
    • 9% of spare parts sales in 2021 from recycled components

    Source: Company website. April 2022, The example above included solely to illustrate the investment process and strategies which have been utilized by the manager. It should not be assumed that investments in the portfolio including the example above have been profitable. Please note that the investment is not necessarily representative of future investments that the manager will make. There can be no guarantee of future success. The companies/securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell.

    Sustainable Transport
    euro flagLG Energy Solutions

    South Korean leader in battery technology with a global footprint

    30
    Of battery technology expertise

    Years of experience

    24,000+
    One of the highest in the industry

    Technology patents

    $4.5 bn.
    Over the last ten years

    Investment into research & development (R&D)

    3,300+
    As of December 2021

    Researchers and engineers employed

    “Charging” towards a better future…

    • LG Energy Solutions is a leader in eco-friendly battery technology with applications across a suite of industries.
    • Strong competitive moat as a major supplier to 13 of the top 20 global electric vehicle brands
    • Awarded 79 projects from 24 OEMs across Europe, North America and Asia

    …through continuous investment in research

    • The company offers a comprehensive portfolio of Advanced Automotive Battery, Mobility & IT battery & ESS Battery enterprises.
    • Extensive partnership with academia and start-ups to foster new ideas and innovation
    • Plans to achieve carbon neutrality by 2050 and 100% renewable electricity in operations by 2030

    Source: Company website, ESG Report. Data as of January 2023.. *For the year 2021. The companies/securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell.

    Renewables & Electrification
    euro flag Iberdrola

    The largest operator of renewable power generation globally

    100
    Million

    People supplied with energy

    €13
    Billion

    Planned investment per annum in infrastructure, with >90% of this investment in networks and renewables

    80%
    Of earnings

    Comes from renewable generation or electricity networks

    7.8GW

    Of renewable capacity under construction

    A world leader in renewable energy

    Iberdrola group started investing in renewable energy more than two decades ago and is today a world leader in renewable energy.

    The company currently has 38 GW of renewable installed capacity worldwide and aims to increase this to 95 GW by 2030.

    The company is currently building 17 renewable energy plants which have become milestones because of their size and innovative nature.

    Investing in smart grid technology

    The company is a world leader in smart grid technology, and operates one of the largest distribution systems:


    • More than 1.2 million kilometers of distribution and transmission lines
    • More than 4,400 substations
    • More than 1.5 million transformers

    Source: Company website. November 2022. *BloombergNEF Electric Vehicle Outlook 2020. The example above included solely to illustrate the investment process and strategies which have been utilized by the manager. It should not be assumed that investments in the portfolio including the example above have been profitable. Please note that the investment is not necessarily representative of future investments that the manager will make. There can be no guarantee of future success. The companies/securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell.

    Sustainable Construction
    euro flag Ariston

    Leading provider of heating and hot water products

    40+
    Markets

    Leadership position in Europe and emerging markets and growing share in North America

    5%
    Below

    Heat pump penetration in Europe

    Below 5%

    Comes from energy efficient and renewable solutions

    3
    Million tons

    Of CO2 equivalent will be avoided due to their technologies

    A world leader in global thermal comfort

    In operation 1930s and over time has built a portfolio of brands catering to a variety of thermal heating solutions to be amongst the leading companies in the sector today.

    Growth is underpinned by accelerating demand for energy-efficient products and regulatory requirements and political goals for energy efficiency and decarbonization

    Hot water and heating markets remain very fragmented, offering significant opportunity for consolidation.

    Low carbon high efficiency heating technologies

    The company is an innovator in best in class heat pump technology:


    • Growing sales now coming from innovative products (released <5 years ago)
    • Best in class products require less technical maintenance than older models
    • By 2045 company expects more than 50% of heating demand to be met by heat pumps

    Source: Company website. April 2022, The example above included solely to illustrate the investment process and strategies which have been utilized by the manager. It should not be assumed that investments in the portfolio including the example above have been profitable. Please note that the investment is not necessarily representative of future investments that the manager will make. There can be no guarantee of future success. The companies/securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell.

    Recycling
    euro flagTOMRA

    Market leader in the reverse vending market and the use of sensors in resource management

    1.4
    Trillion+

    Drinks containers produced every year

    40
    Billions

    Drinks containers collected every year by TOMRA

    80,000

    Reverse vending machines installed globally

    155,607,375

    Metric tonnes of CO2 saved by machines installed by TOMRA mining in 2020

    A world with no concept of waste

    Proper handling of used packaging conserves precious resources like energy, water and crude oil – also reducing GHG emissions.

    Deposit return program encourages consumers to make better choices in terms of discarding their single-use plastics and promoting a sustainable circular economy.

    Beyond reverse vending

    Technology has applications beyond reverse vending:


    • Food – sensor based sorting for food industry to reduce waste.
    • Sorting Recycling – use of infrared sensors for waste sorting.
    • Mining sites – sensors can reduce energy consumption by up to 15% and water use by 3-4 cubic meters per ton of ore.

    Source: Company website. November 2022. *BloombergNEF Electric Vehicle Outlook 2020. The example above included solely to illustrate the investment process and strategies which have been utilized by the manager. It should not be assumed that investments in the portfolio including the example above have been profitable. Please note that the investment is not necessarily representative of future investments that the manager will make. There can be no guarantee of future success. The companies/securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell.

    Designed by data.
    Refined by research.

    Identifying companies with the ability to develop, deliver and scale solutions to the climate challenge demands active insight. JPM Climate Change Solutions combines expertise in artificial intelligence and data science with analyst research to distil a vast investment universe into a high-conviction portfolio of companies with the potential to shape our world.

    1.
    Broad global
    universe

    + -

    The process starts with the ~13,000 companies in the S&P Broad Market Index.

    2.
    Screening for
    exclusions

    + -

    Securities that do not conform with minimum standards of business practice – based on ESG principles and international norms – are excluded.

    CONDITIONAL EXCLUSIONS
    FULL EXCLUSIONS
    VALUES BASED
    Thermal Coal
    Conventional Weapons
    Tobacco Related Activities
    Gambling
    Unconventional Oil & Gas
    Power Generation
    Conventional Oil & Gas
    Adult Entertainment
    Controversial weapons
    Nuclear weapons
    Tobacco Production
    NORMS BASED
    Companies in breach of the
    UN Global Compact

    Read the full exclusion policy

    3.
    Identifying thematic
    relevance

    + -

    ThemeBot natural language processing tool scans hundreds of millions of data sources to identify companies most exposed to the climate solutions theme.

    • Construct mind map
      Uses Natural Language Processing (NLP) to identify words that relate to the theme

    • Analyse big data
      Rapidly analyses hundreds of millions of data sources: company profiles, research, regulatory filings and news articles

    • Rank securities
      Considers both textual relevance and revenue attribution to determine most theme relevance

    Who? Quantitative Solutions, an integrated quantitative research and portfolio management team focused on factor investing, machine learning and data analytics.

    Why? Breadth, transparency and speed: 13,000 companies covered, with full look-through into analysis generated in seconds.

    4.
    Demonstrating
    sustainability

    + -

    Portfolio managers partner with sustainable investing team to define a clear sustainability thesis for each security, using a framework that combines top-down sustainability themes with bottom-up security evaluation.

    Who? Thematic portfolio managers from Quantitative Solutions and International Equity Group, with verification from dedicated sustainable investing team.

    Why? To ensure capital is allocated efficiently towards activities that generate positive sustainable outcomes.

    See the framework

    5.
    Evaluating the
    business

    + -

    Global research analysts assess the ESG profile of each business, and formulate a strategic classification on three criteria:

    • Economics: Does the business create value for shareholders?

    • Duration: Can this value be sustained?

    • Governance: How will governance impact shareholder value?

    Who? >80 sector specialists who together conduct over 5000 company meetings per year.

    Why? To identify quality/growth companies, supported by solid corporate governance and sustainability practices.

    6.
    Assessing
    value

    + -

    Analysts use their research to formulate normalised earnings forecasts for the potential portfolio companies and generate rankings.

    Who? >80 sector specialists.

    Why? To ensure each security comes at a price we are willing to pay.

    7.
    Building the
    portfolio

    + -

    The portfolio management team constructs a portfolio of 50-100 securities, unconstrained by market cap, sector or region, investing in companies with market-leading positions providing solutions to address climate change.

    Who? Thematic portfolio managers from Quantitative Solutions and International Equity Group

    See the top holdings

    An intelligent climate change investment solution

    Discover intelligent climate investing with a higher conviction portfolio of companies rising to the challenge.
    Explore the mutual fund

    JPMorgan Climate Change Solutions UCITS ETF

    For ETF investors, T3MP employs the same strategy to build a portfolio of 50-120 securities.
    Discover T3MP
    This is a marketing communication and as such the views contained herein do not form part of an offer, nor are they 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/emea-privacy-policy. 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. Investment is subject to documentation, which is comprised of the Prospectus, Key Investor Information Document (KIID) and either the Supplementary Information Document (SID) or Key Features/Terms and Condition. These documents, together with the annual report, semi-annual report and instrument of incorporation are available free of charge from JPMorgan Asset Management (UK) Limited. This communication is issued by JPMorgan Asset Management (UK) Limited, which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.
    09uh212106083525
    J.P. Morgan Asset Management

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