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J.P. Morgan Asset Management

PRI reporting framework 2020

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投資前(投資対象の選定)

PE 05. Incorporating ESG issues when selecting investments

05.1. デューデリジェンスで組織がプライベートエクイティ投資先を選定する際、通常ESG問題を組み入れているかどうかを記載してください。

05.2. ESG問題をプライベートエクイティ投資の選定に組み入れる際のアプローチを説明してください。

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. 補足情報 [任意]

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. プライベートエクイティの投資選択プロセスにおいて組織が通常どのような種類のESG情報を考慮するかを記載してください。

          Independent due diligence and references.
        

06.2. 投資委員会または類似の委員会において、この情報がどのように報告・検討・文書にまとめられているかを記載して下さい。

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)


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