Screening is based both on desk-based research and company  engagement activities. Company reports are reviewed to determine company activities. For the screened environmental thematic funds, any company that derives over 10% of its turnover from any one of these activities will not be invested in:

1. Companies that manufacture or sell armaments. Although armaments may be used for self-defence or peace keeping, it is frequently difficult to determine their final use, so we avoid companies with involvement in this area.
2. Alcoholic drinks: Companies that manufacture or sell alcoholic drinks, on account of the problems caused by alcohol abuse, ranging from ill health to domestic violence to road accidents.
3. Companies that manufacture or sell tobacco products, due to the health problems associated with smoking.
4. Companies that publish, print or distribute pornography, including on the internet, due to links with sexual discrimination and concerns over its corrupting influence on behaviour.
5. Nuclear power: Companies that generate nuclear power or build nuclear power plants, on account of the continued risks from accidental discharges of radioactive substances and problems with the disposal of nuclear waste.
6. Companies that operate betting or gambling facilities, due to concerns over the potentially addictive nature of gambling and its consequent impact upon the individual and their family, particularly those in lower income groups. 

In addition, we avoid companies that conduct or commission animal testing for cosmetic or toiletry purposes.  We also pay particular attention to issues such as sustainable sourcing of food and biotechnologies.

As an extra level of assurance, ESG profile including details of revenue from different  company activities are source from research provider Sustainalytics.

If an investee company fails an assessment while it is actually held in the portfolio, the fund manager is obliged to sell the holding at the earliest opportunity that is in the best interest of the investors, at most within three months. Removals from the Approved List and divestments form part of the review process undertaken by Jupiter's Compliance Department.

This information will also be transferred to the Stewardship Committee.

We launched one of the UK's first green unit trusts in 1988, the Jupiter Ecology Fund, and since then we have been at the forefront of investing in this sector. This has enabled us to develop a leading knowledge of environmental and social issues as well as adding significant value for investors.

With concern around environmental issues growing, we believe that our specialist environmental products offer an opportunity for clients to allocate their capital to businesses which are becoming increasingly intrinsic to global structural growth. As the world population continues to grow and develop, the world needs to be more intelligent about the way in which we use our resources and find alternatives for those which are finite and increasingly constrained, such as fossil fuels, land and water.

The Jupiter Ecology Strategy was amongst the first sustainable investment strategies in the world having been established in 1988, just a year after the term ‘sustainable development’ was first coined. The underlying investment philosophy remains unchanged: to identify long-term investment opportunities in global companies that – at their core – provide solutions to sustainability challenges. In our opinion, the increasingly pivotal role that sustainability issues play in global development means that this philosophy is more relevant to investors today than ever before.

In essence, companies focused on providing solutions in activities such as climate change mitigation, pollution prevention, the circular economy, and the sustainable use and protection of water and natural ecosystems, present multi-decade investment opportunities. The strategy therefore has a strong investment alignment to the activities defined under the European Taxonomy for sustainable investment.  The Jupiter Ecology Strategy offers clients focused and specialist exposure to these companies, generating both positive investment returns and sustainability impacts.

The Strategy embodies a long-term investment horizon. This starts with the process of maintaining the proprietary universe of sustainable solution companies. Within this, companies are categorized into seven inter-related solution themes: Circular Economy, Clean Energy, Water, Mobility, Energy Efficiency, Sustainable Agriculture, Nutrition & Health and Environmental Services.

Each potential holding is assessed by Jupiter's Sustainability Analysts to monitor its ethical and environmental performance to ensure it fits within the Funds' individual screening criteria. In addition, Our Stewardship Committee - chaired by the CIO - reviews the companies held by our thematic Environmental and Responsible investment funds to ensure that they are consistent with relevant environmental, socially responsible and ethical criteria sets. The Committee meets at least three times a year providing a forum for discussion of contentious issues deemed to impact approval decisions, as well as environmental and social matters raised by the Sustainability Analysts that are deemed material to company performance.

Our fund managers and analysts carefully consider ESG risk factors pertaining to a company prior to making an investment decision. This process considers potential investee companies on a case-by-case basis, with due regard to the sectors in which they operate. Our environmental, social and governance analysis covers a broad range of factors developed over many years of engaging with investee companies on stewardship matters across a broad range of markets. This framework draws on the expertise of our individual fund managers and their individual stewardship approaches with input from Jupiter’s GS team. These factors are also informed by our engagements with industry partners and standard setting bodies, such as the UN PRI and the Financial Reporting Council, and third-party data and research providers. The CIO plays an oversight role in assessing how our fund managers integrate ESG within their investment process. Further oversight is provided by the Stewardship Committee which provides a forum for considering material ESG risks and assessing the outcomes and efficacy of our engagement around these risks.

To strengthen our capabilities, Jupiter has invested in third-party ESG research and  data to help fund managers with security selection, monitoring, and engagement activities. The data is deployed in two ways: i) to augment day-to-day investee company monitoring, engagement and voting assessment at portfolio level and ii) CIO Office analysis of the ESG risk profile of our total assets under management. The current primary ESG rating providers are Sustainalytics and RepRisk. The fund managers and the GS team use third party ESG ratings and data to help inform the decision making / monitoring process, but we are not beholden to external scores or ratings. The construction of our portfolios at any given time reflects the fund manager’s broader investment process, consistent with his views and the stated objectives of the fund.