ESG integration

ESG factors matter

Environmental, social and governance (ESG) factors are non-financial considerations that can affect the performance of investments. When companies and other security issuers manage these factors well, they are more efficient, more aligned with consumer preferences and less exposed to regulatory risk.

As a result, we believe incorporating ESG considerations in the investment decision-making process strengthens risk management and may contribute to long-term financial returns.

JP Morgan

Environmental

Issues related to the quality and functioning of the natural environment and natural systems

Examples:

• Greenhouse gas emissions

• Climate change resilience

• Pollution (air, water, noise, light)

• Biodiversity/habitat protection

• Waste management

Social

Issues related to the rights, wellbeing and interests of people and communities.

Examples:

• Workplace safety

• Cybersecurity and data privacy

• Human rights

• Local stakeholder relationships

• Discrimination prevention

Governance

Issues related to the way companies are managed and overseen

Examples:

• Independence of chair/board

• Fiduciary duty

• Board diversity

• Executive compensation

• Bribery and corruption

ESG integration across asset classes

We systematically assess financially material ESG factors in our investment decisions, across asset classes and regions, to mitigate risk and improve the sustainability of the investments we make on behalf of our clients.

ESG factors are integrated in our active investment processes in a manner consistent with each investment style. Download the ESG integration approach for your chosen investment group.

Download the full ESG integration paper

Robust oversight and monitoring

We use a common framework to evaluate and approve the ESG integration approach for each investment group, and conduct ongoing monitoring.

Find out more about ESG integration oversight

Firmwide ESG integration resources

Across investment groups, ESG integration approaches benefit from shared global knowledge and resources. In addition to the ESG insights of individual investment desks, we have developed and are implementing globally consistent, data-driven proprietary ESG scoring.

Single system

One common technology platform, Spectrum TM, enabling ESG research sharing across investment teams

Global research expertise

300+ analysts integrating ESG factors into their research

Centralised support

30+ specialists in central sustainable investing team

Principles for Responsible Investment

In 2020, the UNPRI awarded us an A+ rating for our approach to ESG Strategy and Governance, including ESG integration.

View our full scorecard

JPM53533_SI_report_ESG_Stewardship_2800x900px

ESG-enhanced investment stewardship

We promote sustainability through engagement with the companies in which we invest.

Find out how

ESG-focused funds

We offer a broad range of sustainable investing approaches designed to align with our clients’ financial goals and values.

See the funds

For certain strategies that the adviser determines to be ESG integrated, the adviser integrates financially material environmental, social, and governance (“ESG”) factors as part of the Fund’s investment process (“ESG Integration”). ESG Integration is the systematic inclusion of ESG issues in investment analysis and investment decisions. ESG Integration is dependent upon the availability of sufficient ESG information for the applicable investment universe. In addition, in order for an actively managed strategy to be considered ESG integrated, the adviser requires: (1) portfolio management teams to consider proprietary research on the financial materiality of ESG issues on investments; (2) documentation of the adviser’s research views and methodology throughout the investment process; and (3) appropriate monitoring of ESG considerations in ongoing risk management and portfolio monitoring. ESG determinations may not be conclusive and securities of companies / issuers may be purchased and retained, without limit, regardless of potential ESG impact. The impact of ESG Integration on performance is not specifically measurable as investment decisions are discretionary regardless of ESG considerations.

This is a marketing communication. 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 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 all other markets in APAC, to intended recipients only. 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 2022 JPMorgan Chase & Co. All rights reserved

Funds

Solutions

Fund Information

Liquidity Insights

Market Insights

Portfolio Insights