Janus Henderson Global Sustainable Equity Active ETF has outlined its approach to Environmental, Social, and Governance (ESG) integration, focusing on carbon footprint management and exclusionary criteria for high-emitting sectors.
Material actions and disclosures
The Manager applies screens to exclude companies if they are deemed to have failed to comply with the United Nations Global Compact Principles or the Organisation for Economic Co-operation and Development Guidelines for Multinational Enterprises. These exclusions are determined based on data provided by a primary third-party data provider.
The Manager aims to maintain a carbon footprint that is at least 20% below the MSCI World Index. This commitment is primarily managed through exclusion of high-emitting sectors, with consideration of carbon emissions as part of the pre-investment ESG analysis and the Manager’s engagement program with portfolio companies.
The Manager also seeks to maintain a lower hazardous waste ratio compared to that of the MSCI World Index. The hazardous waste ratio is measured as the weighted average of the total hazardous waste generated from each investee company’s operations.
Forward commitments
The Manager aims to maintain a weighted average exposure to companies with notable ESG controversies that is below the MSCI World Index. The Manager will seek to not invest in activities that it considers will contribute to environmental and social harm.
The Manager will also review ESG issues with respect to the Fund’s investments on a case-by-case basis and may take steps to realise, reduce, or cease making further investments in organisations that do not meet its sustainability investing approach.
The Manager applies a 0% threshold of total or gross revenue for companies involved in the production of tobacco or tobacco products. Where total or gross revenue is unavailable, net income as reported by the company in its financial statements will be used.
The Manager applies a 1% threshold of total or gross revenue for companies involved in new oil or gas projects. Where total or gross revenue is unavailable, net income as reported by the company in its financial statements will be used.
These commitments are part of the Manager’s broader strategy to construct a differentiated and well-diversified global portfolio of companies contributing to the development of a sustainable global economy.
Janus Henderson Global Sustainable Equity Active ETF is committed to integrating ESG considerations into its investment processes and aims to avoid companies that do not align with its sustainability principles.