In selecting our external research providers we choose reputable organisations who can demonstrate a robust approach to research governance and validation. This forms one of the criteria on which we select providers and is reviewed when we review our subscriptions. Coverage forms another core pillar of provider selection and the team selected RepRisk, a specialist ESG data provider, on the basis of its strong coverage of both investment grade and high yield issuers, many of which are private companies.
To strengthen Jupiter’s capabilities, the CIO Office has invested in third-party ESG risk data and additional ESG personnel to help fund managers with their integration 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, as further outlined below:
i) The data is used in conjunction with our existing research capabilities to enhance our understanding of companies, monitor for controversies, contribute to our engagement planning and develop the dialogue between fund managers and the GS team.
ii) The data is utilised by the CIO Office with respect to management oversight. This involves analysis of our total assets under management to assess the overall ESG risk profile of our organisation. This process includes information relating to controversies and the environment, and specifically climate-related risks and opportunities. The CIO Office also uses this data to review individual portfolios and consult managers during the formal review process.
Our current ESG data providers are:
• Sustainalytics - ESG rating (corporates) ESG rating, (sovereign), carbon risk rating, product involvement screening data (i.e. tobacco, coal).
• RepRisk - News aggregation service, monitors potential controversies and breaches of global business norms.
• Bloomberg - ESG data and carbon footprinting tool.
• CDP - Global GHG emissions and environmental impact database.
• Transition Pathway Initiative - Assesses companies’ preparedness for the transition to a low carbon economy.