ADVERTORIAL FEATURE
been formalised by shareholders , with the Company transitioning to Article 8 under SFDR . As a result , the company will not make any direct investments in corporate issuers who derive more than 10 % of their revenue from oil and gas generation and production , oil sands extraction , and shale extraction , for example . In addition , they will not invest in issuers that derive any revenues from furs or controversial weapons , and they will not invest in countries deemed “ Not Free ” by the Freedom House Index .
Shining a light This move towards SFDR also increases the Company ’ s transparency on underlying portfolio investments and important ESG related issues . This is particularly the case when looking at carbon emissions – a big contributor to climate change . As it stands , the portfolio ’ s underlying companies are associated with much lower emissions compared to the benchmark . In addition , the portfolio is also associated with a temperature increase of 1.9 degrees by 2050 , much better than the benchmark ’ s potential temperature increase of 2.9 degrees . In addition , where necessary , the managers will utilise the combined power of the wider Janus Henderson group to engage with management to ensure companies are travelling in the right direction on ESG issues . The managers embrace and welcome positive change . They believe that investing in better managed companies from an ESG perspective enables them to gain exposure to more resilient business models , more sustainable cash flows and places them in the best possible position to deliver strong risk-adjusted returns for clients over the long term .
Equinix A good portfolio example is Equinix , which builds digital infrastructure and data centres around the world . Companies operating in this area can score poorly for their environmental impact given potentially high levels of water and energy usage . However , after assessing the company ’ s ESG credentials and engaging with management , the managers have found these risks to be manageable due to the firm ’ s clear focus on sustainability . Equinix has placed significant resources into research and development projects that aim
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