Our Approach
Globally, companies and their investors are navigating a rapidly evolving landscape. Changes in environmental policy, technological innovation and consumer awareness are creating new sources of sustainability-related opportunity and risk. Jennison’s approach to evaluating sustainability risks from a bottom-up, fundamental perspective is consistent with the approach we have taken to security research since our founding over 50 years ago.
Sustainability Matters
We believe that systematically accounting for the materiality of potential risks and opportunities to our investments, including those stemming from ESG issues, supports our primary objective to generate superior long-term investment performance for our clients.
We recognize that material factors may potentially affect the long-term financial condition as well as the valuation and performance of an issuer. Deep analysis of issuer fundamentals drives our investment decisions. We view sustainability factors as important inputs into fundamental analysis which can help our investment professionals make better long-term decisions. We seek to determine how the sustainability profiles of current and prospective investments are likely to impact our investment theses by cultivating a deep understanding of the relevant single and double materiality of the issues to which issuers are exposed and the associated investment implications.
Jennison’s approach to evaluating sustainability risks is investment-led and complements our fundamentally-driven investment process. Financially material sustainability considerations may influence our investment theses, portfolio weightings, proxy voting, and company engagement.
As a signatory to the Principles for Responsible Investment (PRI), Jennison is committed to continuing to build out more explicit and transparent Sustainability processes.
Investment Stewardship
Our first priority is to safeguard the best interests of our clients. Across our equity and fixed income teams we consider the potential risks and opportunities of various factors, including ESG, and their impact on a company’s financial prospects or business model. Where we find areas of concern in our investments, we express our views through engagement as well as through the proxy voting process.
Client Oriented
Sustainability considerations are multi-dimensional and we believe they should not be reduced to single scores and judged solely on that basis. Similarly, we understand that institutions may have investment needs that are nuanced and require tailored solutions. We are pleased to partner to explore ways to pair our expertise with your needs and invite you to contact us.
