Skip to main content
Jennison Associates logoJennison Associates  logo
  • About Us
  • Equity

    • Large Cap Growth
    • Global
    • International
    • Emerging Markets
    • Mid Cap Growth
    • Small Cap Core

    Equity

    • SMid Cap Core
    • Large Cap Value
    • Global Equity Income
    • Rising Dividend

    Thematic Equity

    • Health Sciences
    • Utility Equity
    • Global Infrastructure
    • Global Natural Resources
    • MLP (Master Limited Partnerships)
    • Financial Services
    Fixed Income
    • Active Long Duration
    • Active Core
    • Active Intermediate
    • Stable Value
    • LDI
  • ESG Overview
    • Integration
    • Proxy Voting
    • Engagement
    • Corporate Citizenship
  • Perspectives
  • Contact Us
  • Client Login
Architecture Details Modern Building Glass Facade

ESG IntegrationESGIntegration

Jennison's ESG work is deeply embedded in our investment process.

Overview

Research is the source of our investment ideas. In the course of researching equity and credit opportunities, Jennison’s investment professionals consider, as an intrinsic element of our process, the potential risks and opportunities of various factors. These include ESG issues when pertinent. ESG factors are considered for their potential to materially affect an investment candidate’s financial prospects or business model.

By integrating ESG considerations into our investment processes, we are better positioned to identify and address relevant ESG issues early on, paving the way for us to take timely action without the need for validation by third-party data vendors.

 

ESG: Investment Implications

Our research leads us to a broad spectrum of companies across different sectors and countries. Each investment idea has a unique set of considerations and the role of environmental, social, and governance factors can vary markedly from one situation to another. There are times when these considerations will be material to a buy or sell decision as well as in calibrating a portfolio weight. There will also be instances when these factors are practically negligible in an investment decision. We utilize our fundamental, bottom-up research to identify the relevance and level of materiality of these issues.

We believe that environmental risk, including climate risk, is a material consideration for companies that tend to have large environmental footprints. Traditionally, these firms operate in the industrial, energy, natural resources, and manufacturing industries. Key issues include:

  • Carbon emissions
  • Deforestation
  • Water risks
  • Energy efficiency

Of course, environmental considerations vary widely by sector, investment strategy, and client mandate. To date we have observed that the average technology company faces far fewer environmental challenges than does a long-established industrial company. And while global environmental laws and standards continue to expand, industrial companies are not necessarily without investment merit. We believe it is possible to analyze these firms relative to their industry peer group to understand their achievements and progress in broad context.

 

ESG: Investment Implications

Our research leads us to a broad spectrum of companies across different sectors and countries. Each investment idea has a unique set of considerations and the role of environmental, social, and governance factors can vary markedly from one situation to another. There are times when these considerations will be material to a buy or sell decision as well as in calibrating a portfolio weight. There will also be instances when these factors are practically negligible in an investment decision. We utilize our fundamental, bottom-up research to identify the relevance and level of materiality of these issues.

As employers and providers of products and services, companies perform an essential social function. We believe a company’s ability to maintain trust and strong relationships with its employees and customers is essential to its longevity and ability to create value. Social considerations include:

  • Product safety and governance
  • Diversity and equity
  • Cyber-security
  • Supply chain management
  • Labor practices
  • Workplace health and safety

While labor relations are important across all sectors, other aspects of the social dimension vary markedly by sector and region. For example, cyber security and respect for data privacy can impact the reputation and brand of a company more than ever before, especially among data-rich technology companies. By evaluating a company’s social orientation in a thoughtful and holistic way, we believe we can ascribe the appropriate level of risk associated with these complex and multi-faceted issues.

 

ESG: Investment Implications

Our research leads us to a broad spectrum of companies across different sectors and countries. Each investment idea has a unique set of considerations and the role of environmental, social, and governance factors can vary markedly from one situation to another. There are times when these considerations will be material to a buy or sell decision as well as in calibrating a portfolio weight. There will also be instances when these factors are practically negligible in an investment decision. We utilize our fundamental, bottom-up research to identify the relevance and level of materiality of these issues.

We believe that good corporate governance is the most important driver of the long-term success of a company. With proper oversight, environmental and social concerns should be minimal and dealt with quickly and effectively. Governance issues that we often encounter include:

  • Management compensation
  • Board structure and composition
  • Differential voting rights
  • Shareholder rights

Through our fundamental security selection process, we seek to determine if current management will be a good steward of investors’ capital. Understanding a company’s governance and oversight structures is a key part of this process. We do not impose a one-size-fits-all approach when evaluating these frameworks as there is no reason to believe that certain board or management structures or voting structures are inherently better or worse than others. Instead we prefer to take an evidence-based approach, doing the hard analytical work of exploring each individual scenario to understand its history as well as its prospective impact.

 

ESG: Investment Implications

Our research leads us to a broad spectrum of companies across different sectors and countries. Each investment idea has a unique set of considerations and the role of environmental, social, and governance factors can vary markedly from one situation to another. There are times when these considerations will be material to a buy or sell decision as well as in calibrating a portfolio weight. There will also be instances when these factors are practically negligible in an investment decision. We utilize our fundamental, bottom-up research to identify the relevance and level of materiality of these issues.

  • About Us

    • About Jennison

    • Firm Profile

    • Approach to Investing

    • Contact Us

  • Other Resources

    • Form CRS

Jennison Associates logo
  • Terms & Conditions
  • PGIM Privacy Center
  • Accessibility Help

Jennison Associates LLC. All Rights Reserved.

This website is intended for Institutional and Professional Investors only. All investments involve risk, including the possible loss of capital.

Important Disclosures

Jennison Associates is a registered investment advisor and a Prudential Financial company. Jennison Associates LLC has not been licensed or registered to provide investment services in any jurisdiction outside the United States. Certain investment vehicles are distributed or offered through Prudential Investment Management Services LLC (also a Prudential Financial Company) or other affiliated entities. Additionally, vehicles may not be registered or available for investment in all jurisdictions.

Please click on this disclosure link for important information, including information on non-US jurisdictions.

This web site is not intended as an offer or solicitation with respect to the purchase or sale of any security or other financial instrument or any investment management services. It does not constitute investment advice, should not be used as the basis for any investment decision, and does not purport to provide any legal, tax or accounting advice. This is for informational and educational purposes only and should not be construed as investment advice or an offer or solicitation in respect of any products or services to any persons who are prohibited from receiving such information under the laws applicable to their place of citizenship, domicile or residence.

Any views or opinions expressed on this website reflect the opinions of Jennison investment professionals at the time they are made and are subject to change.

Your investment objectives, risk tolerance, and liquidity needs must be reviewed before suitable programs can be recommended. Asset allocation and diversification strategies do not assure a profit or protect against loss in declining markets. Investors should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.

Please remember that there are inherent risks involved with investing in the markets, and your investments may be worth more or less than your initial investment upon redemption. There is no guarantee that the investment managers’ objectives will be achieved. Further, there is no assurance that any strategies, methods, sectors, or any investment programs herein were or will prove to be profitable, or that any investment recommendations or decisions we make in the future will be profitable for any investor or client. Professional money management is not suitable for all investors.

Information for persons in the United Kingdom and various European Economic Area jurisdictions
In the United Kingdom, information is issued by PGIM Limited with registered office: Grand Buildings, 1-3 Strand, Trafalgar Square, London, WC2N 5HR. PGIM Limited is authorised and regulated by the Financial Conduct Authority (“FCA”) of the United Kingdom (Firm Reference Number 193418). In the European Economic Area (“EEA”), information is issued by PGIM Netherlands B.V. with registered office: Gustav Mahlerlaan 1212, 1081 LA  Amsterdam, The Netherlands. PGIM Netherlands B.V. is authorised by the Autoriteit Financiële Markten (“AFM”) in the Netherlands (Registration number 15003620) and operating on the basis of a European passport. In certain EEA countries, information is, where permitted, presented by PGIM Limited in reliance of provisions, exemptions or licenses available to PGIM Limited under temporary permission arrangements following the exit of the United Kingdom from the European Union. Jennison Associates LLC, PGIM Limited & PGIM Netherlands B.V. are wholly owned subsidiaries of PGIM, Inc. the principal investment management business of Prudential Financial, Inc. (‘PFI’).  PFI of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. These materials are issued by PGIM Limited and/or PGIM Netherlands B.V. to persons who are professional clients as defined  under the rules of the FCA and/or to persons who are professional clients as defined in the relevant local implementation of Directive 2014/65/EU (MiFID II).

Links to third-party sites are intended for informational purposes only and should not be considered investment advice or recommendation to invest. These links do not constitute endorsement or confirm their accuracy, and we are not responsible for any third-party guidelines, security, or accuracy of information.