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.
Designed by data.
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.
Refined by research.
Securities that do not conform with minimum standards of business practice – based on ESG principles and international norms – are excluded.
Tobacco production > 5%
Thermal coal > 30%
Revenue from connection to the nuclear weapons industry > 2%
UN Global Compact
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
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.
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.
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.
Analysts use their research to formulate normalised earnings forecasts for the potential portfolio companies and generate rankings.
Who? >90 sector specialists.
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.