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    CONTINUE Go Back
    1. Climate Change Solutions Fund

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    JP Morgan | Climate Change Solutions

    JPM Climate Change
    Solutions Fund

    Read more

    The big picture
    Capturing innovation
    How it works
    Fund in depth
    More information

    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 2.5° by the end of the century Decrease in cost of solar energy since 2011
    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: The Economic Times, Dan Murtaugh and Brian Eckhouse (2021), Solar power's decade of falling costs is thrown into reverse, Published online economictimes.indiatimes.com as at 3 Nov 2022
        50 bn %
    Tons of greenhouse gas emissions released into the atmosphere every year Increase in the Global electric car stock in 2020 vs 2019
    Source: Our World in Data, Hannah Ritchie, Max Roser and Pablo Rosado (2020), COâ‚‚ and Greenhouse Gas Emissions, Published online at OurWorldInData.orgas at 3 Nov 2022 Source: IEA (2021), Global EV Outlook 2021, Published online at iea.orgas at 3 Nov
        50 % %
    Expected increase in global energy demand by 2050 Share of renewables in global electricity generation in 2020.
    Source: Anadolu Agency, Sibel Morrow (2021), World energy demand will increase 50% by 2050: EIA. Published online at aa.com.tr as at 3 Nov 2022 Source: IEA (2021), Global EV Outlook 2021, Published online at iea.orgas at 3 Nov

    Capturing climate innovation

    Click the themes 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, while supporting a sustainable future for us all.

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

    Sustainable Food & Water
    us flagTetra-Tech

    Global provider of engineering services focused on water, environment, sustainable infrastructure

    Projects undertaken globally per year

    65,000

    Carbon reduction per Associate

    -78%
    Since 2010

    Offshore wind project in the US with Dominion Energy

    3,000
    Homes supplied with renewable energy

    California University Campus Decarbonisation Program

    60,000
    Metric tonnes CO2 emissions reduced per year

    Source: 31 December 2020, Tetra-Tech Sustainability Report 2021.

    Science-based approach in company DNA

    20,000 associates use the company’s industry leading proprietary analytical tools, Tetra-Tech, to assess climate risk and mitigate greenhouse gas impact on communities.

    Leading position in the US

    • 50+ year relationship with the US Federal Government and contracts with 500+ US municipalities.
    • Leading position in US offshore wind.

    Market leading positions in industry - Engineering News Record ratings

    #1 Environmental Management

    12 years in a row

    #1 Water

    18 years in a row

    #1 Desalination

    7 years in a row

    #1 Solid Waste

    8 years in a row

    Sustainable Transport
    US flagGeneral Motors

    Transportation for a future that is not only electrifying but also sustainable

    Metric tons of CO2 avoided through purchase of GM EVs

    950,000+
    In 2020

    Operational reduction in carbon intensity

    31%
    Since 2010

    Planned new EV model launches

    30
    By 2025

    Planned spending on EVs

    $35 billion
    By 2025

    Leadership in the growing US market

    Graph showing US Electric Vehicles on the Road, Battery & hybrid cumulative sales.

    Ahead of peers in electric offerings

    • Company is among the leaders in the transition to electric vehicles with a strong portfolio of battery and powertrain technologies.
    • Industry leader in U.S. National Zero Emissions Vehicle (NHEV) program.
    • Company has made a strong commitment to eliminate all tailpipe emissions by 2035 and use all renewable energy in manufacturing process.

    Renewables & Electrification
    euro flagSchneider Electric

    A leader in energy and automation solutions

    Total energy spend managed on clients behalf

    €30+ billion

    CO2 tracked on clients behalf

    128 million
    Million Metric Tons

    Client savings

    €2.2 billion
    Across 625+ contracts

    2025 key impact goal

    80%
    Green revenues

    Digital solutions to drive carbon reduction

    Enable consumers and businesses to make the most of energy and resources through digital and automation solutions.

    A proprietary interoperable open architecture and platform allows for enhanced safety, efficiency and sustainability for homes and businesses. Achieved through advances in the internet of things, cloud and analytics.

    A partner in climate change action for industry

    Company launched Climate Change Advisory Services in January 2021, a first of its kind service to share Schneider’s expertise in delivering solutions on sustainability and climate action.

    Consultants are well versed on sustainability initiatives and many clients are listed on the STOXX® Global Climate Change Leaders Index.

    Sustainable Construction
    euro flagSignify

    At the forefront of climate action lighting

    Carbon neutral today

    100%

    Revenue from sustainable products

    84%

    Renewable energy

    100%

    World electricity used for lighting

    13%

    Brighter lives, better world

    With energy savings of up to 80% and the potential to save 100 megatons of GHG emissions per year, LED and connected lighting is a quick and easy win for sustainable renovation.

    Commitment to climate action lighting

    • Aim to double the pace of the Paris Agreement over the complete value chain.
    • Signify Green Switch launched as a response to meet the European Green Deal’s five stated goals.

    Leader in solar lighting innovation

    • Solar lighting leads to energy savings of up to 75%.
    • Solar panels last up to 30 years.
    • Off-the-grid communities can access 24/7 light.

    Case study: helping remote communities in india

    • Philips LifeLight, a portable solar-powered lantern designed for regions with limited access to electricity.
    • Complemented by the installation of approximately 84,000 solar streetlights in the country.

    Recycling & Re-Use
    euro flagTOMRA

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

    Drinks containers

    1.4 trillion+
    Produced every year

    Collected every year by Tomra

    40 billion
    Drinks containers

    Reverse vending machines installed

    80,000
    Globally

    2020 CO2 saved by machines installed by Tomra mining

    155,607,375
    Metric tonnes

    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.

    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.

    THRESHOLD EXCLUSIONS
    FULL EXCLUSIONS
    VALUES BASED
    Conventional weapons > 10%
    Tobacco production > 5%
    Thermal coal > 30%
    Revenue from connection to the nuclear weapons industry > 2%
    Controversial weapons
    White phosphorus
    Nuclear weapons
    NORMS BASED
    Severe violations of
    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? >90 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? >90 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 ETF

    For ETF investors, T3MP employs the same strategy to build a portfolio of 60-120 securities.
    Discover T3MP

    More information

    Climate change investing
    Learn more about how we identify climate change solutions.
    Download the paper
    Fund story
    Download a PDF of the fund's main features and investment approach.
    Download the fund story
    Factsheet
    Download a monthly snapshot of the fund's key data in PDF format.
    Access the factsheet
    Sustainability report
    Explore the fund's key ESG metrics in a PDF format.
    Download the report
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