Climate change is one of the biggest and most important challenges we currently face. It is also an environment which has positive tailwinds via policy and regulation, new technologies and evolving social norms. As a result, more and more fund managers are launching strategies which tap into this theme. JPM don’t have experience in this area but have spent the last couple of years developing this strategy. The aim is to invest in 50 to 60 companies across renewables and electrification, sustainable constructions, sustainable food and water, sustainable transport and recycling and re-use.

One of the areas where they feel they offer something unique is the use of big data through their proprietary system called “Themebot”. So for example, if they are looking for renewable ecosystem then the system creates a mind map of different words and scans through all the available data before rating companies to deliver the most relevant investment opportunities. This distils the available universe to around 300 companies. At this point they can lean on the wider group to screen for attractive businesses which are classed as those that create value for shareholders, those that can sustain the value creation and those where they can see how governance will impact shareholder value….read more