Why sustainability matters
We have noticed the shift. Individuals are increasingly opting for more sustainable choices in their daily lives, and this can range from reusable shopping bags to plant-based meat substitutes1 and even electric vehicles.
Companies are factoring in sustainability, such as incorporating goals to achieve net-zero carbon emissions and reduce waste. Governments are also making policy decisions to help transit to a low-carbon economy. From consumers to policymakers, many economic actors are backing sustainability, and this is creating a powerful investment opportunity2.
These days, people are more mindful of environmental, social and governance (ESG) factors than ever before. That is especially evident among investors and the ESG criteria they use to build their portfolios1. Not only do sustainable investing funds incorporate ESG considerations in the investment decision-making decisions, they also allow investment managers to capture crucial investment opportunities and contribute to positive change1.
Sustainable growth opportunities
Sustainable investing is a forward-looking approach that seeks to deliver long-term returns in a fast-changing world.
Megatrends like climate change, demographic shifts and urbanisation are driving business changes and sustainable investing opportunities.
Investing to drive climate action
Recycling & re-use
Investing in companies developing technologies to reduce waste, including equipment and materials recycling.
Renewables & electrification
Investing in companies developing clean energy such as wind or solar, across the full production chain, and enabling electrification across the economy.
Investing to build a better world
Sustainable food & water
Investing in companies developing less carbon-intense forms of agriculture, sustainable food, or clean water.
Sustainable food and water by the numbers
Investing to help shape the next generation of cities
Investing in companies developing less carbon-intense forms of construction, including energy efficiency of buildings.
THE BUILDINGS WE LIVE AND WORK IN ARE KEY DRIVERS OF GREENHOUSE GAS EMSISSIONSGlobal share of buildings and construction emissions, 20191
Investing in companies that are investing in sustainable forms of transportation across automobiles, trains, and planes.
Sustainable income opportunities
Interest in sustainable investing is growing globally, driven by investors trying to increase risk-adjusted returns (“doing well”) and support sustainable outcomes (“doing good”).
In our multi-asset investment process, we believe that explicit incorporation of material ESG information in the investment process can help us seek enhanced risk-adjusted returns over the long-run while also serving as a foundation to align portfolios with client sustainability values.
Our JPMorgan Investment Funds - Global Income Sustainable Fund3 seeks a consistent and attractive level of sustainable income, with a traditional balanced risk profile, by investing globally across a variety of income-generating sustainable asset classes. It is a multi-asset income fund built on three pillars of sustainability.
The JPMorgan Funds – Global Bond Opportunities Sustainable Fund3 is an example of ESG in action within our fixed income range of strategies.
The Fund seeks to help investors achieve the twin goals by providing flexible, high-conviction exposure across the global fixed income market, with a specific focus on sustainability. The shared values of our clients are reflected through robust ESG research, systematic exclusions of unsustainable industries, and tilts towards more sustainable issuers.
How we invest sustainably
We have been taking action to address climate change through various industry advocacy efforts such as being an active member of the Climate Action 100+ and the Institutional Investors Group on Climate Change’s Net Zero Working Group and through activities such as proxy voting and corporate engagement. In 2021, we became a signatory to the Net Zero Asset Managers Initiative and United Nations-convened Glasgow Financial Alliance for Net Zero, through which we have committed to support investing aligned with the goal of net zero greenhouse gas emissions by 2050 or sooner.