Investing for your future—and the planet’s
Among the most prevalent trends today, both in society and investing, is the increased desire for sustainable options. Mitigating climate change, addressing societal inequalities, and achieving a more balanced approach to corporate governance that incorporates the needs of all stakeholders are issues our clients are passionate about.
At J.P. Morgan, we strive to deliver to our clients the tools they need to position their investment portfolios in a way that not only enables them to achieve their financial goals, but that also aligns with their personal views and values. The growth of our sustainable investing platform, which currently has over $7 billion in assets under management across more than 80 investment strategies, is only the beginning of what we believe could be an enduring trend.1
We see the benefits of an ESG-aware and sustainable investment strategy through the lenses of alignment with personal values and exposure to value creation.
- Alignment with personal values: Your finances are one of the most intimate aspects of your life, and we can help you deploy your capital and grow your wealth in a way that’s aligned with your principles. Our sustainable investing strategies can help you avoid investing in companies whose practices or cultures don’t align with certain values. On the flipside, these strategies can also help you enable and encourage practices and cultures you deem valuable. You might choose to invest in companies that support the transition to a lower carbon economy by developing renewable energy solutions, or those that improve access and affordability of financial services to the underserved in emerging markets. Whatever your passions, goals or principles may be, we can help you pursue investment strategies that best align with your objectives.
- Exposure to value creation: As investors, we seek out opportunities that demonstrate upside potential based on our expectations for future growth, competitiveness and high-quality management. Incorporating ESG into investment analysis allows for further insights and information—such as how efficiently a company uses its resources, how well it’s able to retain and attract talented employees, how safe its worksites are, or how much it pollutes the environment—all of which might influence the company’s reputation and operational efficiency. In this sense, the consideration of ESG factors is simply part of good due diligence and investment decision making. Beyond that, we think companies that are innovating in the realm of sustainability could offer compelling growth opportunities. As one example, considering that over 800 million people around the world today are undernourished, and that an estimated total of two billion people experience food insecurity,2 “FoodTech” and “AgTech” companies are working to develop solutions to boost crop yields, reduce waste and help close the gap between food supply and shortages.
Beyond our role as Financial Advisors in the Private Bank, JPMorgan Chase recognizes the importance of addressing critical issues such as climate change and advancing inclusive economic growth. We recently announced new measures to expand our commitment to creating a more sustainable future for the employees, clients and communities we serve. On February 25, our firm shared the following initiatives and actions:
- Facilitating $200 billion in 2020 for transactions that support climate action and efforts to advance the United Nations Sustainable Development Goals
- Supporting market-based policy strategies to address climate change and protect consumers
- Expanding restrictions on financing for coal mining and coal-fired power, and prohibiting project financing for new oil and gas development in the Arctic
- Enhancing J.P. Morgan Asset Management’s investment stewardship process, joining Climate Action 100+
- Expanding deployment of renewable energy in our operations
To learn more about these efforts or how we can help you integrate a sustainable investment approach into your portfolio, we encourage you to contact your J.P. Morgan representative.
1 Source: J.P. Morgan Private Bank. Data is as of December 31, 2019. Subject to change.
2 Source: FAO, IFAD, UNICEF, WFP and WHO, 2019. The State of Food Security and Nutrition in the World 2019. Safeguarding against economic slowdowns and downturns.