This report shows public data only. Is this your organisation? If so, login here to view your full report.

J.P. Morgan Asset Management

PRI reporting framework 2020

serch-btn
Organisational Overview
Basic information [OO 01 - 09] Asset class implementation gateway indicators [OO 10 - 12] Peering questions [OO LE 01 - HF 01]
Strategy and Governance
Investment policy [SG 01 - 04] Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Outsourcing to fiduciary managers and investment consultants [SG 12] ESG issues in asset allocation [SG 13 - 15] Asset class implementation not reported in other modules [SG 16 - 17] Innovation [SG 18] Communication [SG 19]
Indirect – Manager Selection, Appointment and Monitoring
Selection [SAM 02 - 03] Appointment [SAM 04] Monitoring [SAM 05 - 07] Outputs and outcomes [SAM 08 - 09]
Direct - Listed Equity Incorporation
ESG incorporation in actively managed listed equities [LEI 01 - 10] Implementation processes [LEI 01 - 10] (A) Implementation: Screening [LEI 04 - 06] (B) Implementation: Thematic [LEI 07] (C) Implementation: Integration of ESG factors [LEI 08 - 10] Outputs and outcomes [LEI 12 - 13]
Direct - Listed Equity Active Ownership
Overview [LEA 01] Engagement [LEA 02 - 08] Outputs and outcomes [LEA 09 - 11] (Proxy) voting and shareholder resolutions [LEA 12 - 21]
Direct - Fixed Income
ESG incorporation in actively managed fixed income [FI 01 - 12] Implementation processes [FI 01 - 03] (A) Implementation: Screening [FI 04 - 06] (B) Implementation: Thematic [FI 07 - 09] (C) Implementation: Integration [FI 10 - 12] Fixed income - Engagement [FI 14 - 16] Outputs and outcomes [FI 17 - 18]
Direct – Private Equity
Overview [PE 01 - 02] Fundraising of private equity funds [PE 03 - 04] Pre-investment (selection) [PE 05 - 08] Post-investment (monitoring) [PE 09 - 13] Outputs and outcomes [PE 14 - 15] Communication [PE 16]
Direct - Property
Overview [PR 01] Fundraising of property funds [PR 02 - 03] Pre-investment (selection) [PR 04 - 06] Selection, appointment and monitoring third-party property managers [PR 07] Post-investment (monitoring and active ownership) [PR 08 - 14] Overview [PR 08] Property monitoring and management [PR 09 - 10] Property developments and major renovations [PR 11] Occupier engagement [PR 12 - 13] Community engagement [PR 14] Outputs and outcomes [PR 15 - 16]
Direct - Infrastructure
Overview [INF 01 - 02] Fundraising of infrastructure funds [INF 03 - 04] Pre-Investment (Selection) [INF 05 - 09] Selection, appointment and monitoring of third-party infrastructure operators [INF 10] Post-investment (monitoring and active ownership) [INF 11 - 16] Overview [INF 11] Infrastructure Monitoring and Operations [INF 12 - 14] Infrastructure Maintenance [INF 15] Stakeholder engagement [INF 16] Outputs and outcomes [INF 17 - 18] Communication [INF 19]
Confidence building measures
Confidence building measures [CM1 01 - 07]
Export Public Responses
Pdf-img

You are in Direct – Private Equity » Pre-investment (selection)

Pre-investment (selection)

PE 05. Incorporating ESG issues when selecting investments

05.1. During due-diligence indicate if your organisation typically incorporates ESG issues when selecting private equity investments.

05.2. Describe your organisation`s approach to incorporating ESG issues in private equity investment selection.

Sustainability considerations are an important component of both the initial due diligence and screening process as well as the ongoing monitoring of investments.  PEG’s standard investment process for all investments includes due diligence on sustainability, a written investment memorandum and ongoing discussions with the portfolio managers of PEG with respect to sustainability issues. 

PEG integrates ESG considerations into the investment process and every investment memo and discussion through a practical implementation method of questions based on JPMorgan Asset Management and PRI principles. This ensures that the investment process is clear and consistent with the clients’ and portfolio’s investment objectives.  This includes developing guidelines and an approach which are adaptable to market conditions, investment performance expectations, geographic regions, sectors, portfolio construction, client requirements and investment opportunities.  This process includes clarification and assessment of all material risk factors of Sustainability including ESG considerations. 

ESG considerations are used in both short and long-term assessments of risk and reward for investments.  ESG factors could, for example, impact the financial projections and return assumptions of an investment.  At times, ESG factors could cause PEG to invest or pass on an opportunity.

PEG encourages the portfolio companies and the managers with which it invests to advance the principles of sustainability investing in a practical manner consistent with return objectives and fiduciary duties, which include:

  • Considering environmental, public health, safety and social issues and their impact on investment returns
  • Positively impacting communities, including, for example, promotion of health, wellness, and advancement
  • Using governance structures that provide effective management, including in the areas of audit, risk management, and potential conflicts of interest
  • Implementing procedures and processes to ensure compliance with laws and to prohibit bribery, inducements and other improper payments or non-competitive behavior
  • Promoting and protecting human and social rights, including confirming that underlying portfolio companies comply with labor laws and do not maintain discriminatory policies or engage in illegal work practices

The incorporation of ESG considerations and client mandates is considered for all PEG investments during the due diligence process.  As an additional client and ESG screen, if PEG decides to proceed with an investment, there is a separate Allocation Process where client mandates and appropriateness are reviewed based on specific guidelines.

 

05.3. Additional information. [Optional]

There is a dedicated ESG section incorporated into all investment memos, alongside other consideration factors, which are discussed at PEG investment committee meetings.  For monitoring, ESG is verbally discussed during our weekly team meetings, as well as distributed to all of PEG in meeting notes.

PE 06. Types of ESG information considered in investment selection

06.1. Indicate what type of ESG information your organisation typically considers during your private equity investment selection process. 

          Independent due diligence and references.

06.2. Describe how this information is reported to, considered and documented by the Investment Committee or similar.

The PEG uses its experience and relationships with general partners and other sponsors of partnership, the companies themselves, existing investors in such companies, current and former employees of such companies, and its global network to perform extensive due diligence.  Throughout the due diligence process, the PEG will consult with both internal and external resources to seek to develop a comprehensive understanding of an investment, including ESG considerations.  Reference checks are performed on key management personnel from customers, suppliers, competitors and members of the investment community.  The PEG leverages JPMorgan’s global resources as well as the research and analysis of internal and external relationships to develop a solid understanding of all key aspects of the company including market analysis, environmental, social, governance, company operations, labor resources, facilities, equipment, and asset base, customers, capital structure  among others factors.

All information considered in the investment process, including ESG information, is kept in PEG’s records.

PE 07. Encouraging improvements in investees (Private)

PE 08. ESG issues impact in selection process (Private)

Previous Section Next Section
Top