Janus Henderson, a global active asset manager with over $400 billion in assets, has launched five actively managed sustainable exchange-traded funds in the U.S.
Three funds are focused on equities:
- U.S. Sustainable Equity ETF (SSPX)
- International Sustainable Equity ETF (SXUS)
- Net Zero Transition Resources (JZRO)
Two funds invest in bonds:
- Sustainable Corporate Bond ETF (JZRO)
- Sustainable & Impact Core Bond ETF (JIB)
“The launch of this comprehensive suite of sustainable ETFs is designed to showcase Janus Henderson’s intention to help investors authentically embrace sustainability, without sacrificing a commitment to robust investment results,” said Nick Cherney, head of exchange-traded products of Janus Henderson, in a recent press release. “These ETFs also represent the intersection of two very significant growth opportunities for Janus Henderson, our ETF franchise, and the surge in client demand for robust ESG solutions.”
Janus’ involvement with environmental, social, and governance issues dates back to 1991, when it launched its first sustainable equity product. The company was also a founding signatory of the United Nations Principles for Responsible Investment in 2006.
Its three-decade involvement with ESG has resulted in a solid commitment to ESG values that relate to its employees, clients, investment processes, as well as local communities. For example, Janus has been operating with a net-zero carbon emissions footprint across all its global offices since 2007.
In addition, in 2019, the London-based firm committed to meeting three strategic goals. The first is to reduce greenhouse gas emissions by 15% per region over a three-year time frame starting in 2018. The second is to offset any unavoidable emissions, such as the running of its global offices and corporate travel. The third goal is to maintain a high score for its Carbon Disclose Project (CDP). The pandemic’s unforeseen events slowed down a bit the normal trajectory of its program, but the company has provided additional data on how it sees the GHG trajectory going forward.
To offset the current emissions, Janus has been involved in various projects such as creating 420 acres of new wetlands, establishing an environmental education center, and generating electricity from the Seneca Meadows landfill site to power 18,000 homes. The site is New York’s largest non-hazardous solid waste facility.
Janus participated in the Truck Stop Electrification (TSE) technology, which enables long-haul truck drivers to rest and sleep without having to run their engines and polluting the environment. Janus has also been active in a solar water heating project in India and a wind farm in Morocco.
Its U.S. Sustainable Equity ETF focuses on high-conviction, low-carbon oriented U.S. companies that would provide long-term compounding growth to investors while mitigating downside risk. The International Sustainable Equity ETF focuses on the same elements but for global firms. The Net Zero Transition Resources ETF invests in natural resources supply chain firms that are contributing to the goal of reaching net-zero GHG emissions by 2050.
Its two bond funds focus on identifying ESG leaders while generating competitive returns on a risk-adjusted basis for investors.
“To us, sustainability is a logical and critical component of a robust investment process,” said Paul LaCoursiere, global head of ESG Investments. “And it is our belief that addressing complex and nuanced factors such as climate change and social issues in a meaningful way requires an active and engaged investment approach. It is through detailed analysis and regular interaction with companies that we believe true progress and sound investment decisions can be made.”