ESG: This ASX ETF manager is participating in the UN Climate Change conference

After a hiatus in 2020, the United Nations Climate conferences are resuming and Janus Henderson will be in attendance.

Janus Henderson is a global asset manager with approximately $569.6 billion in assets under management. It is headquartered in London but has a growing presence in Australia.

Yesterday Janus launched the Janus Henderson Global Sustainable Equity Active ETF (ASX:FUTR) onto the ASX.

FUTR is the second ASX ETF operated by Janus Henderson with the first being Janus Henderson Tactical Income Active ETF (ASX:TACT).

But it will also have a presence at the COP26 summit in Glasgow.

The conference brings together heads of states, scientists and campaigners. It comes six years since the famous Paris summit in 2015 and will be the first time the Paris Agreement will be formally reviewed.

Janus will hold and participate in a a panel discussion on November 8 on the topic “Does decarbonisation have to be bad for markets?”

Speaking with Stockhead yesterday, Janus Henderson’s head of Australia Matt Gaden said participation at the United Nations Climate Conference made sense considering his company’s offerings. 2021 marks the 30th anniversary since it first launched a Global Sustainable Equity strategy.

“For us, sustainability is deeply engrained in our thinking and our action, so it makes sense we’d be involved in a panel discussion at this time,” he said.

Janus’ ETF

Gaden says Janus’ FUTR ETF invests in companies seeking to confront global challenges posed by so-called “mega trends” and those seeking to transform their industries in a positive way.

Megatrends allude to large, transformative processes with global reach, broad scope, and dramatic impact.

Examples Gaden thinks fall into this category – and that Janus’ ETF attempts to solve – are climate change, resource constraints, the challenges of population growth and aging populations.

“I’d refer to it [FUTR] as seeking to benefit from positive environmental and social change which I’d describe as a little bit more than ESG,” he said.

“I think there are different categories of ESG strategies, you’ve got what might be referred to as ‘integrated’ – meaning that a fund considers and integrates ESG considerations into the portfolio.

“This fund FUTR is in the category of sustainably themed investing, so we are looking at particularly the thoughts of global mega trends that are playing out.”

Significant interest in sustainable investing

Gaden says this area of investing has been substantially growing in the past couple of years but there was some way to go.

“We’ve seen a real growth in the interest of ESG and sustainably themed funds in the past couple of years,” he said.

“We think the number is north of $33b raised in sustainable funds over FY21 which is a really significant number.”

“And what we’re also seeing is demand from intermediary marketplace so advisers, financial planners and the firms they work for alongside with what are called mainstream strategies.

“I do think over time we’ll see sustainable and ESG strategies move into the mainstream yet – the interest is significant here in Australia and offshore.”