JANA takes an integrated approach to the consideration of Environmental, Social and Governance (ESG) factors.
JANA can assist clients with:
- the development of ESG, socially responsible or ethical investment policies
- implementation considerations and
- assessment of investment manager ESG capabilities.
JANA believes that ESG factors should be considered as part of a robust investment management framework because:
- ESG factors can impact the probability of meeting investment objectives over the long-term by affecting the sustainability of returns
- ESG factors are another source of risk in investment portfolios that should be managed prudently
- investment managers that effectively identify ESG factors and how such factors impact on investment returns of each investment are better placed to deliver long-term sustainable investment returns
- pursuing investments which take into account ESG factors is consistent with JANA’s perspective as a long-term investor
- although assessment and monitoring of ESG factors does not necessarily prevent poor investment performance, it can reduce risk and thereby potentially protect and enhance wealth over the long term and
- effective stewardship can play a role in enhancing the risk-adjusted performance of investments, and thereby improve the potential to provide long term, sustainable returns for investors. JANA considers stewardship activities an important responsibility that assists in the delivery of client investment objectives.
Consideration of ESG factors is integrated into JANA’s investment research approach.